Finance Articles

Uk Debt Increases: But It?s Nothing To Do With A Mortgage

Debt charities have reported they are hearing from an increasing number of people whose spending is out of control.

On average, people who turn to the Consumer Credit Counselling Service for advice owe ?31,000 which does not include their mortgage.

The rising trend means more Britons will need to reduce interest and actively manage debts. The large sums involved also mean that more will find themselves in the dangerous territory of unregulated loans.

But in their desperation, consumers attempting to take control of their debts are being warned to beware of unregulated loans that can lock them in for years and leave them at the mercy of rocketing exit charges.

As the name suggests, these loans fall outside the normal safeguards we have come to expect when borrowing money. They are typically loans made to individuals, outside any mortgage arrangements, for amounts above ?25,000.

Personal loans for amounts below ?25,000 are subject to the Consumer Credit Act. This ensures lenders cannot impose excessive fees or conditions on their customers.

These protections are particularly valuable when borrowers want to pay off their debts early. In these circumstances the Act says lenders cannot charge a fee of more than one month's interest. Better still, if the term of the loan is one year or less, lenders cannot charge and early repayment penalty.

Mortgages, usually for more than ?25,000, have their own protection provided by the Financial Services Authority. Its rules mean that when borrowers repay a mortgage early or fall into debt, charges are limited to the costs the lender will incur.

None of these safeguards are enjoyed by borrowers who take out unregulated loans. Unregulated lenders include complicated and costly repayment penalties in the small print of their contracts. Arbitrary charges for early repayments are common and penalties can lock borrowers in for years, during which time they are also at the mercy of rising interest rates.

So do secured loans make sense? While secured loans can make financial sense in certain circumstances, as borrower, you should carefully assess the terms and conditions attached to the loan.

You also must be certain that you can repay the loan. The lender enjoys the security aspect of the loan, not the borrower. If you cannot handle the repayment, the lender can forcibly sell your house to recover the loan.

This is why many consider the secured loan as a last resort and that the only justifiable reason for such a borrowing option is a need to reduce or consolidate existing debt costs.

The two leading reasons for taking out a secured loan are unsecured debt consolidation and financing home improvements.

Other popular reasons for secured borrowing are mainly buying a new car, paying for a wedding and buying property abroad.

Given the UK public's current appetite for borrowing, the secured loans industry is unlikely to go into recession. Datamonitor research expects such loan advances to reach ?51 billion by 2008.

Get great articles on Personal Loans from Personal Loans for me http://www.personal-loans-for-me.co.uk

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Getting Accepted For A Mortgage With Bad Credit History
The, current credit squeeze is affecting many mortgage borrowers, in particular, those with poor credit. Borrowers who have poor credit can still obtain a mortgage, using a company that offers 'bad credit mortgages' as a way out of debt.

The Hidden Sub-Prime Buy-to-Let Mortgage Crisis
For several years Britain has been denying that it is facing the credit crunch that has gripped the financial markets of the United States While financial institutions collapsed and entire neighborhoods were abandoned to become ghost towns throughout the USA, Britain appeared to dodge the silver bullet and emerge unscathed from the loose lending criteria of the early 2000s

Secured Finance What Is It And How You Can Obtain It
The most common form of secured finance is a home loan. Here are the basics that are universally the same. The first thing you must know that, even though it is secured finance which has relatively fewer risks for the lender than an unsecured loan, it is still a major purchase and a loan of a substantial amount of money for a private individual to borrow.

Business Finance  Grants
When it comes to obtaining a Business grant there are many places that you can turn to such as Regional Development Agencies, local authorities and the European Union however the most common way is through the Government. Whoever you apply to for a business grant your application will always be considered by the European Commission; they will inspect your application closely before coming to a decision as to whether you are eligible for a business grant.

Set Sail for the Real Estate Investment Opportunity of a Lifetime: Bringing Investor Education to the High Seas with Mobile Home Park and Self Storage
Eight days of real estate investing education, fellowship and fun await the savvy investor on board Carnival's Miracle cruise ship. Slated for December 9th through the 17th, the inaugural Mobile Home University Caribbean Seminar Fun Cruise promises to deluge real estate investors with the knowledge they need to succeed in the mobile home park and self storage investment arenas.

Subprime Mortgage Lending - What?s Wrong With It?
For the past couple of years, it seems that every time you open a newspaper or turn on the television, you come up against the subject of subprime lending Everyone seems to have something negative to say about it

Employee Performance and Talent Management Technology a Sound Investment in Uncertain Economic Times
New research study finds numerous management benefits from investments in HR software

Retirement Finance Planning-Tips For Planning Your Financial Future
Retirement finance planning is one of the most important activities you will ever engage in. Quite simply, if you don?t know where the money is coming from once you?ve finished working, you won?t have a very enjoyable later life.

Demystifying the Mortgage haze
Mortgage loans are ideal for individuals purchasing a home of their own. They are generally offered against some collateral. But home buyers are often overwhelmed by the number of mortgage deals available and they tend to get confused and opt for a mortgage loan that appears convenient but in reality it might not be the best deal for them.

Google Finance - Excellent New Website For Financial Information
Google has gotten into the financial side of the web recently Actually they have been in it for a while but it is still in Beta

Using The Internet To Find Mortgage Refinance Information
The Internet is one of the greatest information tools we have today. There seems to be no limit to what you can learn when it comes to going online for information ? and that includes mortgage refinance information. If you are looking for information about a mortgage refinance, you have only to log on to the Internet and find a wealth of information at your fingertips. Everything from how to apply for a mortgage refinance to tips on what to look for in a mortgage broker can be found online.

Is A Reverse Home Mortgage Right For You?
First of all you may ask what is a reverse home mortgage and how can I determine if it’s right for me. That is the purpose of this article. As you continue to read, you will get a much better understanding of what a turnaround loan on your home is about and how it may or may not be right for you.Many of you have spent more than half of your adult life paying off a home lien. After all it is the "Great American Dream" to own one’s own home, free and clear. As the years have passed, and the value of your residence has increased, it may have become your main savings account and only asset. In other words you have been building equity (cash value) in your residence. However, because of life's circumstances, (excessive ...

Paying Off Your Mortgage is a Mistake
If you are even thinking about paying off your mortgage, think again. Why is the Federal Reserve Bank of Chicago reporting that Americans are making the "wrong choice" when it comes to pre-paying their mortgage and saving for their retirement? Find out EXACTLY why and how you can empower your financial future. Live event and financial workshop April 22, 2008, 7 p.m., Oakbrook, IL.

Investment - Can You Do Without It?
It is hard to imagine if anyone is living without money and it is equally hard to imagine if humans are living without investing in someway or the other. In plain language, investment means the act of investing or laying out money or capital in an enterprise with the expectation of profit. But at the same time the term investment also means money that is invested with an expectation of profit.