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If you check your credit card bill carefully, you will notice that there is sometimes an optional extra charge there. You may have selected it and in that case it will cost you a set amount, or it may be that you have not selected it and in that case it will be zero. This payment protection insurance or PPI. Payment protection insurance has grown rapidly in the last couple of years and is now offered by virtually all credit card providers, on all of their products. It has had both praise and criticism, with one of the strongest criticisms being that it offers the customer no protection at all, and only protects the lender.

Payment protection insurance is an optional insurance cover that you can pay for. The cost will be added to your monthly credit card bill and will typically be assessed on the basis of your outstanding credit card balance. So, for example, the cost of the insurance might be five pence on every pound you owe on your credit card bill, so if you owed one hundred pounds, five pounds would be added to the bill as the cost of the payment protection insurance.

One of the fiercest criticisms of payment protection insurance is that it will not offer any protection. It is designed to guard you against such possibilities as losing your job or becoming unable to work. If you become unable to meet your repayments on a credit card, typically what happens is you will become subject to harsh penalty charges, your credit rating will be severely damaged, and eventually the debt will be referred to a collection agency.

What the payment protection insurance is supposed to do is step in in such situations and continue making the repayments on your behalf. However, there are very strict conditions attached to payment protection insurance. It will only meet your repayments if you have lost your job through no fault of your own. Read more…

For most of us owning a home is an agenda that tops our list of “things to do before I retire.” But the unfortunate part is that in most cases all this remains a mere fantasy, which dies an unfortunate death the moment it meets the reality of monetary considerations.

Don’t let your dream home remain a mere air castle for you. You can now translate your dream home into a concrete reality by availing a mortgage. As a first time buyer there are bound to be a lot of doubts in your mind. This piece of writing hopes to address some of those queries.

The first thing for you to do before taking the plunge into the property market is to ask yourself these questions: how much can I afford? What kind of a home do I want to live in and finally how much of a mortgage do I need to borrow?

There are various elements that ascertain the amount of mortgage you can borrow. Your credit history and the deposit that you can make towards your mortgage are some of the key elements. The bottom line is that higher is your deposit on the mortgage, more will be the mortgage options you will have at your disposal.

The key to a good property hunt is research. Get on the Internet and you are sure to find out for how much was a property similar to the one you want to buy sold at. This will give you a fair estimate about the asking price of the property before you go knocking on the Read more…

A SIPP is a type of Pension which provides you a tax efficient way in which you can invest funds to build a regular income and a tax free lump sum amount when you reach an age above 50.

SIPP is different from traditional pension plans as it provides More control and flexibility to make any type of investments including cash, equities (shares), bonds

So, you are in need of some cash. Your family members, friends, neighbors, even your golfing buddy are all tapped out. Trouble is, your car payment is due in 3 days and you can?t be late. That Pontiac Solstice sitting in your drive is a great ride, a chick magnet, and more precious to you then food. Okay, a bit of an exaggeration, but you get my point: you need money and you need it now! Personal loans abound and they are one solution to a crisis situation. Is a personal loan right for you? More importantly: exactly what are your options? Read on and I?ll show you the way!

Payday Loans: Payday loans have gotten a lot of press over the past few years as they are a great way to secure personal loans quickly and easily. However, fees and interest rates are high so if you aren?t planning to pay it off within a few days you?ll end up paying extra charges.

Cash Advances: Credit Cards are another way for you to secure a personal loan. By drawing on your card?s cash advance feature, you can borrow a few hundred to a few thousand dollars without seeing a loan officer. You?ll pay a fee for the privilege and the interest rate on a cash advance is quite high. However, if you can pay the loan off quickly it could be a viable personal loan alternative for you.

Equity Loans: If you own a home, your house may have some equity in it. Some lending institutions are so eager to lend money to you that they?ll approve a loan on the spot. Be careful: the rate could be high and you are putting your house on the line. That Pontiac Solstice convertible may not be worth that sort of aggravation!

Friends, Family Members: Ah, now for a test of your familial relationships. Ask Read more…

If you are just starting out in the business world or you are thinking of expanding your current business, then you may be thinking about taking out a business loan. Getting a loan is not always the cheapest way of financing, but it is often necessary and does give you more flexibility than most other options. If you do your research and follow some simple steps, then you will find the best loan for your business needs.

Types of loans

As with any type of loan, business loans come in various types and with various terms. Here are some of the options you should think about when getting a business loan:

Fixed vs. variable rate

As with most personal loans, business loans come in both fixed and variable rates. Fixed rate loans are better for those companies that have definite incomes each month, and so want to pay a fixed amount. Variable rates can save you money, but you remember to budget in case interest rates increase.

Payment types

Whatever type of loan you get, the most important factor is the way you will pay back the loan. The most common repayment scheme is to make equal repayments back each month until you pay off the loan in full and the interest amount. The interest level and the agreed loan term length determine the amount you pay each month.

Another popular method is to pay lower equal payments each month and then pay a larger balloon payment at the end. This works if you know that in the future you will have more money, but right now you need to keep your outgoings to a minimum. However, you should remember that you will have to pay the large payment at the end; so budgeting for this is crucial.

If you want even lower Read more…

If you are about to start University, then it pays to know about the student loan process. Most students take out some form of student loan during their study to help them pay for their fees and living expenses. If you are unsure about how student loans work, then this guide will be able to help you.

How are loans paid?

Student loans are paid in three instalments each year, usually once each term. The first payment is usually made by cheque, and then after that payments will go straight into your bank account.

How much can I receive?

The amount you will receive depends on where in the country you are going to attend University, as well as the financial status of you and your family. You can opt to get a fixed amount per year, or you can be income assessed and the maximum amount you can receive will be determined. You can take as little or as much of this amount as you want. On average the amount you can receive ranges from ?1,500 to ?4,500 each year, depending on your financial status.

How do I pay back the loan?

After you have finished University, you will begin paying back the loan. Repayments will start from the April after you graduate, although you only need to repay money after you start earning above ?15,000 per year, calculated on a monthly basis. The amount you pay back will be taken out of your wages just like tax, at a sliding rate. You can also pay back more than this if you wish, by sending money to the appropriate authority.

What is the interest?

The interest on student loans is subsidised by the Government, and so you only pay back the same amount that you borrowed, adjusted for inflation. However long it takes you to pay back the loan, you will only pay back the same amount in real terms Read more…

When thinking about borrowing money, most people look at loans as the most sensible option. Although it is true that loans are often a good option for borrowing money, they are also inflexible, and if you are someone who wants to pay back your loan early then there can be heavy penalties. However, there are some alternatives to loans if you want to borrow money:

Overdrafts

One of the cheapest ways of borrowing money is through the use of an overdraft, especially if you want to borrow money on a short-term basis. Your bank can agree an amount of excess to the amount you currently have in your account, which you can use but will pay interest on. By authorising an overdraft you can use this money as a permanent line of credit. Some banks even off interest free overdrafts. However, overdrafts are still not advisable as a long term means of borrowing money, and the amount of credit you can get is often fairly low.

Credit cards

Credit cards are one of the most common alternatives to loans, and can provide you with a good source of extra money when needed. If you can get the level of credit you need and are able to pay off the bill promptly, then you will pay little or no interest. However, the major problem with credit cards is that the interest is usually higher than a loan, and there is a danger of getting too many cards. If you avoid these dangers, then using a credit card as an alternative to loans can work well.

Mortgages

Mortgages are perhaps the best way to borrow large sums of money over a long period of time. You can add credit to your mortgage by borrowing against the equity in your home and adding that amount to your repayments. The advantages of a mortgage are that the interest rate is low and the payments are spread out so the payments appear small. However, because you are paying back over a long period of time, the interest can still add up, and you will not Read more…

Even folks with less-than-perfect credit can get a credit card, although it’s not quite as easy. In fact, you may have to do a little more digging to find a company that’s willing to approve you for a line of credit. Fortunately, there are some ways to make the process simpler, such as:

CHECK YOUR JUNK MAIL

These days, credit card companies run a credit check before they start sending you “pre-approved” applications in the mail. So if you’re receiving offers from a credit card company, it’s likely you’ll get approved when you apply. Don’t just toss out that junk mail. Instead, take the time to carefully review it.

GO LOCAL

Your local bank or credit union–the one you already have an account with–may be more willing to give you a credit card if you have a good history with them. If you don’t usually bounce checks or overdraw your account, your bank might issue you a credit card with reasonable terms. Credit unions are often your best bet, since they’re “customer owned” and typically have lower rates and less stringent policies.

STICK WITH A MINOR CARD

To make your credit history stronger, start with a store or gas card. Retail cards–such as those offered by department stores–typically have more lenient approval terms, so even folks with bad credit can get approved. Check with your favorite retail store or preferred gas station to see if you qualify.

DO AN ONLINE SEARCH

Many companies that offer Read more…

Most people have needed a little extra cash at some point in their lives. And just because you’ve declared bankruptcy doesn’t mean you can’t get approved for a loan or line of credit! However, your special circumstances mean that you may have to accept some conditions, such as:

HIGHER INTEREST RATE

Since your credit history has some black marks, lenders will view you as a riskier borrower. From their perspective, you’re more likely to make late payments, miss payments or default on your loan. In an effort to balance out this risk, many lenders will charge a higher interest rate to borrowers who have declared bankruptcy in the past. Although you can expect to pay a rate that’s one or two percent higher than average, watch out for excessively inflated rates. Comparison shop to see what kind of deals you get offered.

HIGHER FEES

As with the interest rate, the higher fees are your lender’s way of balancing out the risk of lending to a borrower who has declared bankruptcy. You may have to pay extra charges–like an annual fee on a credit card–and you may have to pay higher “extra” fees. For example, a late payment charge on your loan might be higher than average. Again, be wary of any loan company that seems to be charging you exorbitant, unusually high fees.

OFFERING COLLATERAL

You may need to offer some type of collateral to be able to obtain credit or Read more…

There are as many uses of personal loans as there are people who borrow them and most lenders will be happy to allow you to borrow for whatever purposes you desire. However, there are a couple of general principles that you should apply when deciding how much to borrow, what type of loan to take out, and how long you want to take to repay the loan.

One of the first and most important guidelines in this regard concerns secured loans. Secured loans will be secured over your home and will give the lender a right, in the event that you fail to repay your loan, to sell your home to recover the amount owed. This is a serious event that you will wish to avoid at all costs and by following a few simple principles you should be able to drastically reduce the chance of this occurring.

You should not, as a general rule, secure loans over your home that are going to be used on short term expenditures. While this will mean different things to different people, it is fairly clear that you shouldn?t be securing a loan on your home to pay for a holiday. If you were to do this every year, it probably wouldn?t take long before all the equity in your home will have been used up on holidays. This will place your home at a higher risk of repossession as a result. At the same time, it is perfectly normal to secure a loan over your home to pay for an extension or some other form of home improvement. Assuming you can afford the repayments on the loan, the extension will increase the value of your home, thus creating more equity, while at the same time allowing you to enjoy the benefits of the money used. This would be a good example of what a secured loan should be used for.

Other circumstances will be less clear and it will be up to the individual in each case Read more…