In the past six years, over £27 billion has been paid out due to mis-sold PPI. Millions of people in the UK are owed money by their bank or credit card providers for mis-sold payment protection insurance (PPI).
The banks have suffered massively for the mistakes they have made. However, they aren’t the only ones suffering from PPI claims. The Financial Ombudsman has been struggling with PPI claim cases being referred to them for final decisions. The ever-increasing backlog of complaints means that some consumers are waiting up to two years for claims to be resolved.
The Financial Conduct Authority (FCA) decided that a deadline needed to be put in place for people to make claims — that date is 29th August 2019. This means that consumers have two years to contact a PPI claims company or to make a claim themselves. The FCA is hoping that a deadline will encourage people to make claims and not put it off any longer.
Two years may seem like a long time, but it can take banks months to resolve a claim. If you are unhappy with your result, it will take even longer if referred to the financial ombudsman.
This means now is the time to organise your PPI claims and hold your bank to account for any money they owe you from mis-sold PPI. (more…)
George Osborne wanted to create a more level playing field in the buy-to-let market. Instead, the former Chancellor of the Exchequer and newly minted newspaper editor has generated consternation amongst private landlords.
Some landlords in the residential sector are now thinking about scaling back their property portfolios, while others are mulling over a change to commercial property — and others are of a mind to throw in the whole landlord thing altogether. What’s got them all so worked up? More tax and potentially fewer profits is the answer.
Mr Osborne’s Section 24 changes to the Finance Act came into effect on April 6 and directly affected the rental incomes of landlords and landlord agents operating in the residential sector (the legislation does not apply to companies renting commercial space, which is why some private landlords are considering the switch). From now until April 2020, the amount that private landlords can claim in tax relief for finance costs such as mortgages and loans will gradually decline, from 75% this year to 50%, 25% and then 0% in the coming years.
Unsurprisingly, this has created widespread alarm among private landlords, but according to one survey, well over a million of them are not aware of how they are now financially impacted by the newly enacted legislation. The poll showed that 1.4 million landlords did not know about the impending tax changes and their implications and that, altogether, some 8.2 million people in England could be affected. (more…)
The release of the housing white paper “Fixing our Broken Housing Market” predicted that by 2020, only 25% of 30 year-olds will own their own home. The government claims that the housing market is broken because not enough homes are being built, they are being built too slowly and commercial developers still dominate the market.
The paper then outlines how to rectify the crisis. The aim is to build a million new homes by 2020 and make sure that these homes are built in the right places. Only time will tell if the proposals will succeed.
For first-time buyers under 30, you may be concerned about being in the predicted 75% without your own home by 2020. Getting a mortgage for the first time is a struggle many people face, but there are tricks of the trade that can help you on your way. Here is some advice for first-time buyers to help you towards getting on the property ladder.
Check Property Prices in Your Local Area
Since the EU referendum in 2016, the property market has been uncertain about what will happen when we finally leave the European Union. The outcome could fluctuate house prices, so it’s important to keep up to date with what is happening in your area. Monitor the current prices of houses in the area you wish to move to and check what price the houses are currently selling for. Other factors can change house prices as well, such as the introduction of the Cross Rail; the announcement of the line caused an increase in house prices. (more…)
Debt and stress are connected. When you are in debt, you are more likely to be stressed. And when you are stressed, you are more likely to make poor financial decisions.
The connection between stress and debt is one of the reasons that the Citizens Advice Bureaux in England and Wales deals with 4,495 debt-related problems every working day. To make matters worse, manipulative marketing can lure unwary consumers into a vicious spiral of indebtedness. By educating yourself about debt management options, you can understand the best route out of debt.
Not Paying off your Credit Card
Not paying off your credit card can have serious consequences, especially if you leave it to rack up month after month. First, you’ll be fined by the credit card company itself, and then you’ll be hit by the credit card’s interest fees. The average credit card interest rate in the UK recently hit an all-time high of 21.6% APR, with some credit card retailers charging as much as 50%.
Arguably, the most serious consequence of not paying off your credit card debt is that it will effect your credit score, making it extremely difficult for you to take out other loans, get a mortgage, or buy a car.
Payday loans are small, unsecured, short-term loans. They’re known as payday loans because they are marketed as a way to cover unexpected expenses until payday.
When you take out a payday loan, you’re nearly always facing sky-high interest rates, with some being as high as 7,000%. This can trap you in a cycle of debt where you’re unable to pay off the interest on your original loan. (more…)
A short term emergency requires a different strategy that you might be used to. You see, when you went to go get a home loan, it took some time from the bank. But this time was necessary for all of the paperwork to be processed, credit to be checked, and references to be verified. You don’t have that type of time when a real emergency hits. In order to weather the storm, you must borrow money online from Short Term Loans 60 instead of just waiting around.
The price of inaction is huge. A real emergency means that if you don’t get it handled in a short amount of time, things are only going to get worse from there. Take for example a car breakdown. You need your car to go to work every morning. Sure, friends and family might try to close the gap for a little while, but they will eventually get tired of having to pick you up. You’ll also lose the freedom of just riding where you need to go and doing what you need to do. That’s not a good idea either.
So we come back to short term financing, where you can get the money you need very quickly and move on with your life. It’s not the lender’s job to nose around and see whether or not you’re going to use the money for a good purpose. They don’t focus on that at all. The only thing a short term lender thinks about is whether or not you’re likely to make the payments. Income and employment history is much more important than credit score. There are a lot of people with good jobs but terrible credit. They just need a hand to weather a storm that could spiral out of control if they’re not careful. By putting your focus on getting the problem taken care of quickly, you avoid this problem completely.
All you have to do is sign up online and fill out a short form. Not only will this start the process but multiple lenders will be involved. You get to have people fight over your business, so to speak. Getting the best terms and the best rates through this method is seamless and effortless. You won’t have to wait weeks or even days to figure out if you’ve gotten approved. You can get a response back in less than 5 minutes and have the money transferred within 24 hours or less.
The time is now to take care of the problem, get back on your feet, and move on. Good luck!
It may seem funny since my blog is all about saving money and being a cheapskate, but I am encouraging everyone to never close a credit card because it will COST YOU MONEY.
Used correctly credit cards can be a great way to save (and even make) money. This is counter to what many Debt Elimination programs preach. Indeed Ramsey says “There is NO positive side to credit card use. ” I like both Dave and John’s programs and follow much of their advice, but on this point I strongly disagree, credit cards just need to be used responsibly.
I will break down 3 main reasons not to cancel your credit card.
1 – It will hurt your credit rating.
2 – Its an interest free loan.
3 – Rewards.
1 – A large component of your credit rating is credit utilization. That is the percentage of credit you are actually using. If you call and have a credit card canceled you are reducing your amount of available credit so you utilization will go up and your credit rating will go down.
For example, lets say you had two credit cards with a $5000 credit limit and they were both maxed out, this would but your credit utilization at 100% and would greatly reduce your credit rating. Now lets say through saving and scrimping you were able to get one of them paid off. Great your credit utilization has gone down to 50% this will be a nice boost to your credit rating. But you decide to follow the advice of the Dave Ramseys of the world and cancel the paid off card, what happens? Your credit utilization goes back to 100% and your credit rating drops back down.
Another component of your credit rating is the length of time you have had credit. If that credit card you just canceled was a very old line of credit you could be in for a double whammy hit on your credit rating.
2 – Where else can you get a short term loan for no interest than a credit card? Just make sure you pay off the full balance of your credit card every month on the due date and its a free loan. I do put everything I can on my credit card. If I am going to buy $30 in groceries today, by putting it on my Discover Card® , I wont actually have to pay for 1 – 2 months (depending on my billing cycle). That is $30 I can have in my Bank of Internet Checking Account earning interest. Obviously keeping $30 for an extra month or two will not make you rich, but if you do this with all your spending all the time, it will add up. (more…)
Applying for a personal loan is a great solution if you need help with financing an important project. A personal loan can also help you get out of a bad situation if you need cash quickly and can afford to pay the loan back. Borrowing money is an important responsibility and you should learn more about personal loans before considering applying for one.
Getting a personal loan will be easier if you have a good credit score. Consider building your credit score by applying for a small loan first or by using credit cards for a while. If you do not have enough time to build your credit score, you will have to use one of your belongings as a collateral for your loan. Most loan provider will accept your vehicle as a collateral but you will not be able to borrow more than your vehicle is worth. Using another valuable item can be an option depending on the loan provider you choose.
You should assess how much money you need to borrow. Money lenders might try convincing you to borrow more than you need so they can earn more from interests and other fees. Your loan will be much easier to pay back if you borrow as little as possible, even if borrowing more means getting a lower interest rate. Remember that the best way to get out of debt is to make your payments on time and pay your loan back as quickly as possible. Your personal loan payments should correspond to your budget or your financial situation will become worse.
It is very important to borrow from a licensed professional. Loan providers can obtain a license by agreeing to follow certain guidelines designed to protect consumers. A licensed loan provider has to clearly explain their fee structure and must offer reasonable interest rates. You are taking the risk of being charged hidden fees and facing illegal repossession methods if you borrow from someone who is not properly licensed. Ask your loan provider for their license number and contact the organization that issued the license to make sure it is still valid.
Calculate how much your personal loan will cost you. You need to make sure the monthly payments will fit within your budget before borrowing the money. If you do not have a way to pay the loan back, it is best not to borrow the money. Making your payments on time should be a priority since late fees and interest rates can add up quickly. If you have to borrow money at a high interest rate because of your bad credit, you should try paying the loan back in one or two large payments to prevent interests from adding up.
Do not apply for a loan without learning more about the terms and conditions. Licensed money lenders have to go over terms and conditions with you but you should not hesitate to ask questions if there is something you do not fully understand. Doing some background research about the loan providers you are interested in is a great way to avoid issues and make sure you understand the conditions you are agreeing to. Keep in mind that submitting your application often means agreeing to the terms and conditions. If you decide to borrow money from a loan provider that operates over the Internet, talk to them on the phone first so you can ask questions.
These tips will help you find a good personal loan. Take the time to compare your options and learn more about interest rats or fees before applying for a loan. Keep in mind that borrowing money is a good financial decision if the loan can help you improve your situation and if you can afford to pay the loan back on time. You could end up in a worse financial situation if you are not careful and borrow money you cannot afford to pay back. Do more research on different loan providers before applying for personal loans and try improving your credit score if you can. Do not hesitate to have a friend or a relative help you find a good loan provider if you need to.
Assuming you took advantage of a student loan, you could already be in debt the minute that you graduate from college. Those student loans are the beginning of your credit history building and unless you are extremely careful, you might end up with more credit than you can actually afford to pay once you land a job. But whether or not you are fresh out of college, there are instances when wrong financial decisions lead to disasters.
If you find yourself dealing with mounting debt, it takes a bit of analysing your situation and knowing which solution applies to your particular case. One type of solution that you can go for is to seek help with debt consolidation. Read on to find out more about how it works, what to look for in a debt company and how you can use it to hopefully put an end to your money woes.
Help with Debt Consolidation – What Is It?
First, when you seek help with debt consolidation, what kind of assistance is it that you are looking for? As the name implies, the process of consolidation is a type of financial solution for those who are in debt. Let us say that you have three credit cards and you are unable to pay at least the minimum amount on all of them. If this is the case, getting help with debt consolidation means that you will hire the services of a professional debt management company.
Getting help with debt consolidation is bound to lower the monthly payments as well as the interest rates once the three debts that you owe from three credit card companies have been negotiated with. One thing you need to watch out for is that the longer the debt stays, the more that you are paying your lender, so make sure that it really is an ideal debt solution for you before going for it. It’s worth pointing out that, a failure to sensibly manage your debt crisis could lead to a number of more challenging scenarios, or force you into bankruptcy. Mike Smith, of leading insolvency firm Company Debt comments: ‘The failure to adequately manage debts is a serious situation which ultimately forces creditors to take action with regards to recouping their debts. So as a holistic strategy for managing your financial situation, debt consolidation can certainly help simplify a repayment structure with an eye to keeping on top of things.
A Closer Look At How Debt Consolidation Works
Now, let us take a deeper look at how debt consolidation works. Although you do have the option of taking out a second mortgage or taking advantage of credit card offers, what is usually the best way to consolidate your loans is through the help of a bank or a finance company. Here is a quick list of what the bank or finance company can do for you: (more…)