Archives for Debt

Is it buy now pay later or buy now pay more?

There are many things that happen in life which need quick and decisive action. Things like the washing machine breaking down when you need to get the kids’ school clothes clean, the car conking out which you avidly rely on to ferry you to work every day or your TV going on the blink when the race is about to start. If you have emergency funds you will be able to get these things repaired or replaced but what happens if you don’t have the money to hand or don’t have insurance to cover it? One option a lot of
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Economic Recovery Painful for All

Article provided by Debt Support Trust – A registered charity. The economic recovery in the UK is slow and painful. People and businesses have been feeling the strain for almost three years now and it doesn’t show any sign of easing up.  As inflation between March and April continue to rise, the increased cost of living in the UK will mean that more people will be closer to the breadline than ever before. The recent rise in inflation based on the Consumer Price Index (CPI) from 4% to 4.5% was a result of the increased cost of transport, alcohol, tobacco
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Coping Classes – the bigger picture.

A recent report launched by Friends Life finds that the combination of the recession and spending cuts has brought about profound changes in the way in which generations within families support each other. This information comes to the fore as 44 tax and benefits changes are introduced which could wipe billions off household incomes over the next year. Rather than finding the traditional “sandwich generation” model, the ‘The Coping Classes’ report finds middle income households increasingly relying on their retired parents for financial support, while remaining more committed than wealthier or less well off households to helping their children financially. Key findings:
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Risk Based Pricing & Responsible Lending – some thoughts…

In a nutshell risk based pricing is the reason why people with a poor credit score pay higher interest rates for credit. It is standard practice to charge a higher rate of interest to a customer who is considered ‘higher risk’. The price is based on the perceived risk involved in lending money to someone who might not have a very good track record with credit. I’m struggling to come up with a really good argument for why this is a good idea… People with either a history of badly managed credit or with no provable track record of managing credit could quite
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UK National Debt

I was going to write an article about the national debt and where it is, who owes it to who and for what etc. but when I started my research I found out somebody has already done a far better job than I would have! So here it is: http://www.economicshelp.org/blog/uk-economy/uk-national-debt/
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Insuring Debt is Stupid

With talk of £300BN being used to insure banks bad debts it rang alarm bells because it’s one of the prime factors that has seen Western economies fall to their knees. Do you know what a ‘Credit Default Swap’ (CDS) is? It’s a bit like an insurance policy to protect against defaults on debts. But it’s not really insurance it’s just an agreement to pay a regular amount in return for a lump sum if a default occurs. Payment protection has been around for a long time as a consumer product which will protect a borrower if they lose their job or can’t
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Is an IVA the best solution?

This is a question that has arisen a few times and the answer appears to be, maybe not. There are certainly options to consider before making the decision and those are: Remortaging – As a homeowner, I can see that it makes the most sense to top up a mortgage to get at the equity neaded to clear debts. This way I could extend my mortgage to 25 years or more and spread the cost to reduce my monthly outgoings. Debt consolidation loans – either secured or unsecured loans can be used to consolidate debt depending on the amount of debt. An
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