Buy Now And Really Pay Later!
With UK personal debt breaking through the £1 Trillion mark last year, it's safe to say a large number of the UK population is in debt. This comes in the form of outstanding car finance, bank overdrafts, credit card bills and many other factors. More and more people are turning to loans to group all their debt and reduce the amount being paid out every month. But with the UK loans market booming and new brokers popping up every day, it's hard to tell which will help or which will simply be a hindrance.
Gone are the days when you waited patiently and saved vigorously for that new car, wedding, holiday until you could buy it outright. The immoral phrase "buy now, pay later" is a motto for millions. Yet while in some instances this can help, the majority leave you dealing with debt. Many can handle it, but many cant. And the loan brokers have cottoned on!
Grouping all your debt together with one loan, reducing your monthly payouts seems like a great idea. Attractive plans such as "pay nothing for five months" and "a free DVD player with every application" softens the blow further. But whilst the benefits are clearly and loudly stated, the problems that could arise are not.
You can be penalized for paying back early. Once you've referred your debt to a loan, in most instances, you have to pay back the set amount per month agreed, for the entirety of your loan durations. A few brokers allow early payment, but these are few and far between.
You risk losing your home. If you've secured your loan on your house and do not pay it back, there's a strong chance you could lose your house. Even if you've not secured the loan on your house, the courts have the power to get the money back somehow and that can often mean your humble abode.
These are some things you should always check when taking a loan out. Remember it pays to shop around and it most certainly pays to do some checks on the broker you are doing business with. Are they well known? Are they established? Where did you find them? Follow these guidelines and you'll be a step closer to finding a good debt-grouping loan. But the bottom line is, when it comes to taking out a loan, research, research, and research!
Frazer Lavender is co-founder of UK-dedicated loans information portal http://DesperateLoans.co.uk
Latest News
Reuters | Consumer Borrowing in US Falls Record $7.9 Billion Bloomberg - Non-revolving debt, including auto loans, dropped $5.2 billion for the month. Fed policy makers last month cut the benchmark interest rate target to as low ... Consumers borrow less than expected ECONOMIC REPORT Consumer credit drops record $7.9 billion CORRECTED - US consumer credit posts record drop in November |
![]() Javno.hr | Loan Delinquencies Hit Record High Last Year Washington Post, United States - By Nancy Trejos Delinquencies on auto loans and home equity lines of credit reached their highest levels on record during the third quarter of 2008, ... Late loan payments hit record high in 3Q US consumer loan late payments at 28-year high Home-equity delinquencies at record level |
Sallie Mae Raises $1.5 Billion for Private Loans Washington Post, United States - Reston-based Sallie Mae has secured $1.5 billion worth of financing from investment bank Goldman Sachs for a batch of private student loans, a sign that ... Sallie Mae Closes $1.5 Billion Financing Sallie Mae closes $1.5 billion financing Sallie Mae Closes $1.5 bln. Financing with Goldman Sachs ... |
PennyMac, Led by Ex-Countrywide Head, Buys FDIC Loans Bloomberg - Known as PennyMac and led by Stanford Kurland, the firm is paying an average of 30 cents to 50 cents on the dollar for the loans and the FDIC is sharing ... FDIC Unnationalizes Some Debt BlackRock, Highfields-backed firm to share gains and losses with FDIC PennyMac Completes Purchase of $558 Million in Mortgage Loans from ... |
Reuters | Banks Pare Fed Loans After Increase for Year-End Cash Bloomberg - Outstanding loans to banks through the Term Auction Facility dropped to $384 billion from $450.2 billion, the Fed release showed. ... Video: Jan. 6: Stocks Finish Higher on Fed Minutes The Free-Market Hasn’t Failed Us, Keynesian Economics Has Will asset-backed securities return? |
![]() The Money Times | General Motors May Not Require Further US Loans to Survive Bloomberg - 7 (Bloomberg) -- General Motors Corp. has enough government loans to cover the worst-case scenario it described last month and says it won’t need more if ... End Run On the Treasury GM says govt loans cover worst scenario - report GM May Not Need Further Loans: Report |
TruckTrend Magazine | As a condition of loan, UAW cannot strike against General Motors Detroit Free Press, United States - The US Treasury set myriad conditions on GM as part of the plan to loan the company $13.4 billion for survival. Those terms had not been fully disclosed ... UAW strike would put automakers in default of federal loans GM chief's accounting of taxpayer loans a refreshing contrast Autoworkers union begins talks on concessions |
AFP | Citi reaches deal with lawmakers on home loans The Associated Press - WASHINGTON (AP) — Democratic lawmakers have reached a deal with Citigroup Inc. on a plan to let bankruptcy judges alter home loans in an effort to prevent ... Citigroup Backs Bankruptcy Courts Cutting Loan Rates Citi Will Support Bill to Rework Bad Loans Citigroup backs Congress plan on home loans: lawmakers |
Borse Dubai May Get $2.5 Billion Loan as Credit Eases Bloomberg - 8 (Bloomberg) -- Borse Dubai Ltd. may be the emirate’s first state-owned company to tap banks to refinance a multibillion-dollar loan since September, ... |
The Money Times | Judge OKs LyondellBasell loans after Ch. 11 filing Forbes, NY - US Bankruptcy Judge Robert Gerber gave the company's American unit interim approval to seek up to $2.167 billion in loans. Earlier in the court session, ... Lyondell Can Borrow $2 Billion, Bankruptcy Court Says Bankruptcy loans approved for LyondellBasell Lyondell gets over $2 bln in bankruptcy financing |
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