Why You Should Start Saving Now For Summer Holiday

With the average expected expenditure for a family holiday at a massive two months’ salary, living off a less than keen income may have you struggling with the idea of how to make the best of your summer outing. No need to fret, with a good amount of time and careful planning you could soon find yourself on that much needed holiday without putting further strain on your finances.

Being an excluded part of mainstream banking could make booking hotels, rentals cars, and other travel arrangements quite difficult, as most of these establishments only accept credit for means of reserving your stay.

Under banked and on the Road

Choosing your destination months ahead of time is a great way to save on the price as well as budgeting for your travel expenses. Depending on where you travel, giving yourself time to save those pounds may give you options like paying off a booking in full beforehand or scoring fantastic deals on those popular destinations.

Some hotels will allow cash for a security deposit on a room or may even accept a prepaid card for the reservation. Try calling in advance to negotiate with your accommodation. Even if they say no it will help you determine what options are available to you.

There are also alternatives to staying at a posh hotel. If the weather is good; camping can be just as relaxing. Hostels could also be a good choice if you are a lone traveler who doesn’t mind bunking with others, as most accept cash as payment. Also renting from a private owner who may not need to hold credit information could prove to be a worthy option. (You can explore home swaps and rentals in further detail) Note: It is better to use PayPal or cheques when dealing with a private party. If you must use cash, get a receipt.

If you plan to fly there are ways around the use of a bank card. PayPal is an acceptable form of payment at some airlines and you can use a PayPal cash card to add cash to your account. A Eurorail pass and other public transportation tickets can be purchased at stations with cash and would be a cheaper alternative to burning fuel.

Tuck In!

You should not have any trouble whatsoever paying for treats for yourself with cash or other forms of payment. Nevertheless, if you are watching your pocket its good practice to budget for your meals and other activities.

Research the areas you plan to visit and establish how much you have to spend on each meal and outing. Looking at where the locals frequent could give you a good idea of the best spots around town or any specials events happening on the days you will be in town. Carry with you only the amount you intend to spend for that day or evening and nothing else.

Packing snacks from home is the best way to save you from those expensive impulses buys at the local convenience store when you become peckish in-between meals. A reusable water bottle could also be a lifesaver especially if your travels lead in a more rural direction. If you are going on an extended holiday, finding lodgings with a cooker could do wonders for your budget.
Making the best of your summer holiday does not require a good credit report, only a little time, a little saving, and the desire to take a much needed rest.

For more information on long term lending contact today.

Household debt in the UK is spiralling

Household debt in the UK has spiralled over the last few years. According to research from an accountancy firm PwC, the average figure of unsecured debt that an average household owes will be approximately £10,000 by the end of 2016. So what has caused this?

  • Research shows that borrowing on credit cards, personal loans and overdrafts has grown by nearly £20 billion to £239 billion in 2014, an average of £9,000 per home. PwC financial experts stated that “the increase is the fastest rate of growth in at least a decade, with £9.1 billion (46%) made up of student borrowing, £4.2 billion (22%) from credit cards and £6.4 billion (32%) from other borrowing.” They believe this will be a trend that will continue over the next two year period with a growth of between 4-6% annually.
  • If an interest rate hike should occur then this could overstretch many households making them vulnerable to the management of their debts. The report adds that a 2% increase could mean households would have to find approximately £1000 a year on top of their current outlay just to cover the additional interest costs.
  • The YouGov survey noted that one in three people go into debt over the Christmas period. Loosing track of spending when trying to fund the extreme costs of Christmas have terrorised the bank accounts and credit cards of many people in the UK.
  • The Banking software company ‘Intelligent Environments’ commissioned this survey and found that “Britons aged between 25 and 34 struggled the most with money, with 64% facing debts or arrears of some kind.”

For a payday loan or short term loans, contact us for more information.

Are You Eligible For Help With Your Council Tax?

Struggling with the day to day bills can be such a chore when you are on a limited budget. Council tax is one of the largest outgoings after rent or a mortgage so checking with your local council to see if you are eligible for any discounts could help the monthly coffers.

  • How much should your council tax cost?
    This will depend on your banding which is always based on the value of your home. The valuations in England and Wales are as follows. Double checking what band you are on could make a difference, ask your council to reassess if you believe you have been banded incorrectly.
    A – up to £40,000
    B – over £40,000 and up to £52,000
    C – over £52,000 and up to £68,000
    D – over £68,000 and up to £88,000
    E – over £88,000 and up to £120,000
    F – over £120,000 and up to £160,000
    G – over £160,000 and up to £320,000
    H – over £320,000
  • If you live on your own and are a ‘liable’ adult then you will be eligible for a 25% discount, whatever your salary.
  • There are certain properties that are exempt from council tax, these include, armed forces accommodation, a home that is solely occupied by full time students or a home that is empty and unfurnished for up to six months. If you are making massive structural changes to your home then it is possible to apply for a 12 month exemption. It is worth investigating all exemptions as any reduction will make a difference.
  • If you are on a low income or claiming benefits then reductions can apply, this will depend on where you live and under what circumstances, for example if you have dependants living with you.

How and When Do You Need a Bad Credit Loan?

Most of us have experienced a time in our lives when we were deemed to have “bad credit”. This can be for a variety of reasons; young adults who have yet to establish credit accounts, single parents who struggle financially, divorce, or simply being unskilled in managing finances. It is a universal stigma; we are our credit scores. So, how do we approach obtaining a loan when we are “high-risk”? There are several options out there; some of them come with a steep price. Bad credit loans can be one of the options available.

Do the Ground Work

The best advice is to do the ground work. Start with your credit score. There are several ways to find out what your basic number is, for free. The easiest way is to go through your bank. Most banks have an online presence where you can do all your banking right there. Several of these will have a place to get a look at your credit score. If it is low, and you want to know why, it may be worth the investment for you to delve into your credit records.

What You Must Know Before Applying for the Loan?

You know the following before you apply for any kind of loan:

  • Is there anything that can alter your circumstances while affecting your ability to make payments?
  • Do they charge an interest rate, variable or fixed?
  • How important is your credit ranking to get your loan approved?
  • Can you afford repayments on a monthly basis?
  • Any chance to make repayments before the scheduled time?

Now Find a Lender for Bad Credit Loans

There are several lenders in UK to get you quick bad credit loans and you can dig down to find the most appropriate option. Once you have completed the base work, it is time to find the right loan for you! There are several types of loans out there, even for low credit scores. If you are looking for a small loan and you have already been rejected because of bad credit or no credits at all, then why not try a bad credit loan.

Bad Credit Loans for Bad Payers: Nothing Is Impossible

In the last years, the advent of the economic crisis has been felt a lot and certainly, unemployment and job instability of many families has caused many financial difficulties. It could bring the credit system to a high number of bad payers, maybe without work or with a not provable income, and the difficulties of applying for a loan rose dramatically. However, if you are in these situations do not despair because you can find a loan with the right information. In fact, many lenders have been adapted to the situation.

Thus “Bad Credit Loans” were born in the UK in the year 2005 and the only disadvantage to the borrower is a higher interest rate, to protect the lender who is exposed to this risk.

Secured Bad Credit Loans

In secured bad credit loans, it requires a provable income, the signature of a guarantee or the mortgage on immovable, resulting so in a lower interest rate. Another option is the “pawn”, the cession of an object of value in exchange for money; usually, the loan released has the same value of the good or just a bit more. One can avail from £20,000 to £60,000 through this option.

Unsecured Bad Credits

Unsecured bad credit loans are a concrete opportunity and you can obtain a loan till to £20,000 with no guarantees to give. Of course you will have a higher interest rate because the risk that the lender is taking on is more; however, they are protected by the judicial sphere in case of insolvency.
If you are after a small loan to be approved very quickly then you can try with a “payday loan”. It has been created for those who urgently need money to meet a necessary and perhaps unexpected payment. Payday loans can be to a maximum of £1,000.

Bad payers, as you can see nothing is impossible thanks to bad credit loans!

Efforts Made by Financial Ombudsman for Borrowers of Short Term Loans

Short term loans in the UK have, historically, been the domain of the loan shark. However, since the financial crash in 2008 these loans have become a common, more legitimate, feature in the UK. Often known as Pay-Day loans, they offer a short-term solution to a financial situation many people find themselves in when they cannot meet their monthly financial commitment. This normally may happen because of some outside and unforeseen events.

Quick Fix to Certain Situations

They offer a quick fix to a situation which previously, prior to the 2008 crash, many banks would have overlooked, certainly with a less harsh financial penalty. These loans have now become available for slightly longer periods of time that can be up to, 6-12 months. As the mainstream banks began to charge a fixed fee of £25.00 for unpaid items plus fees for the unplanned borrowing of similar sums, these loans became a relatively cheaper option for many people. They would choose to use these short-term loans rather than having to pay a penalty of £50.00 plus for an unpaid item to the bank. This was often compounded by a further fee from the recipient of the unpaid sum. This would, seemingly, make these short term Loans, relatively better option.

Compound Interest Rate

The actual rate charged (compound) is calculated on the interest rate and the term of the loan usually added on a daily or monthly basis which depends upon the term. Einstein called Compound Interest Rate the 8th wonder of the world. The higher the risk the higher the rate offered for short term loans.

Financial Ombudsman is There to Help Borrowers

There have been a huge number of complaints to the Financial Ombudsman over the collection methods used by the varying companies offering these loans when a borrower defaults. They have been persuaded, under threat of more stringent legislation, to lend more responsibility and offer more suitable repayment solutions to defaulters. Most firms seem to be complying as it is a very lucrative market.

Pros and Cons of Bad Credit Loans – How Soon Will The Loan Be Approved

Bad credit loans are designed for people that have a poor credit history or a limited credit history. Bad credit can be caused by a number of reasons. Some have defaulted on or failed to repay previous loans on time. Others have had a County Court Judgement (CCJ) issued against them. People who have a limited credit history may have never applied for a loan or credit card before. Both types of credit, bad and limited, pose problems to lenders because they cannot properly assess a borrower’s ability to repay the amount borrowed. Specialist loans like bad credit loans are available to help people repair or rebuild their poor credit records.

Pros and Cons of Bad Credit Loans

Pros

Cons

  • The biggest downside to receiving a bad credit loan is the high interest rates required.
  • Interest rates are normally very high compared to standard loans because of the risk lenders face with default.
  • Most applicants who apply for bad credit loans have had problems managing their finances previously. They are, therefore, considered a high risk for lenders.

How Long Will It Take to Get Your Loan Approved?

Well, it varies between the lenders but you may also expect an instant decision to be made right after you apply for the loan over the phone or online. However, you must keep in mind that it may take couple of days to get approval. In some cases, lenders may ask for evidence of income due to which approval of the loan could take a bit longer than usual.

Your Finances Under Your Own Control with Help of Short Term Loans

Financial situations are as unique as the people who find themselves in them. Harmful financial trends like an increase in the cost of housing and stagnate wages mean that consumers have increasing financial pressures. They may choose to get through a tight spot with assistance of short loans.

Money, especially the exchange of money, can even ruin your relationships and friendships. The risk that the borrower may fail to repay the amount on time or in full is simply too much for some. This is one reason for short-term lending to boom in recent years. You simply have to maintain a stable lifestyle, find the best lender to avail short term loans and you can escape financial trouble very easily. These loans help preserve the privacy of the borrower as well as protecting their relationships with loved ones. Obtaining such loans can be the best option to make consumers feel their finances are under their own control.

Your Exclusive Source to Loans

Normally banking systems favour commercial lending. Banks are viable options where you are going to start a business or need extra financing to help your business grow. For small personal loans, however, responsible lenders who can issue small amounts of cash from £100 to £1000 loans may be a better choice. They can provide short term loans that help bridge the gap between pay periods relatively.

The Need for Short Term Loans

Many consumers may experience a cash shortage in-between pay periods. This may mean making the choice between paying a utility bill and providing groceries for their family. Quick loans for bad credit, whether they are in the form of payday or installment loans, provide just enough to get the borrower through a rough patch.

Short Term Loans Can Cause Greater Hardship

These immediate loans do, however, come with a cost. They typically carry high interest rates because of the default rates associated with such loans. Short term loans should only be used as a last choice. While the money received can help consumers achieve their immediate goals, just keep in mind, these loans can result in even greater hardship. Consumers who are considering a payday loan should find a responsible lender and commit to borrowing only what they need when a favour is required.

Payday Loans Vs Instalment Loans – Make The Best Choice

Among the most popular loans available today in the UK, payday loans now face stiff competition from instalment loans. While each has benefits, there are some key differences. Before applying for a loan, it is important to know which loan is right for you.

What is a Payday Loan?

Borrowers who qualify for payday loans receive a small amount of cash to tide them over until the end of the month or the date when their next salary is paid. Payday loans provide a short term solution to cash shortfalls.

Who Needs Payday Loans?

Payday loans are issued to people who are 18 years of age or older and have full-time employment. Applicants choose payday loans because they do not want to rely on family or friends for help. Most have a necessity for a small amount of money in-between pay periods.

What is an Installment Loan?

Instalment loans are relatively new. They are issued and then repaid over time. The repayment period can range from two months to one year, depending on the credit status of the borrower. Facing stagnant wages and rising prices, more and more people are struggling to make both ends meet. Many people turn to installment loans to help pay monthly bills like gas or electric as well as other loans like car repairs or other necessities. Some who find themselves consistently in a cycle of financial hardship may, as a result of their situation, opt to renew their instalment loan to stay afloat.

Key Differences Between Payday Loans and Installment Loans?

Payday loans, like the name implies, are normally paid when the borrower receives a salary at the end of the month that the loan was issued in. They are meant to bridge the gap between the times the borrower has run out of cash to the time when they are paid again. Payday loans are small and unsecured. No collateral is required to secure a loan, but high rates of interest are applied.

Instalment loans are repaid across several dates. A specific duration is applied at the time that the loan is issued. Charges for the loan are rolled into the monthly repayment amount.

The Best Choice to Make

People that need a loan with more flexible terms may choose an installment loan. They may not be able to afford to pay off a loan straight away or have finances that are more suitable for multiple repayment terms. Instalment loans also offer larger amounts of cash.

How to Cut Back During the Winter Months

The party season has well and truly left the building and it’s now time to reduce the hefty burden of its aftermath both physically and financially. With a seemingly freezing winter still gnawing away at us, it seems impossible not to have the hurting on full blast 24/7. Of course this just increases the cost of our monthly outgoings making it even harder to get back on top. However there are a few things you can do to help cut costs in other ways.

Shopping

  • Plan your weekly meals and shop only for these and stick to a budget, it will make impulse buys less likely, sticking to a shopping list will work wonders
  • Consider buying unbranded goods, they are great value and rarely compromise on flavour. Some of the cheaper supermarkets have outstanding offers
  • Take advantage of the daily bargains and buy one get one frees
  • Use your coupons and accumulated advantage points, as the saying goes, every little helps

Gas and electricity

  • Look at paying your bill by direct debit, paperless billing and online statements are not charged to your account. This can provide a saving of up to £2-4 per month, if this amount was saved across every household bill then over the course of the year you could save an average of £100
  • If you use the same supplier for both gas and electric check if you are eligible for a dual fuel discount
  • Draft excluders and insulation are practical ways of keeping the cold air creeping in and could reduce your consumption or the amount of time you have your heating on for

Sensible spending is an approach that all of us at PiggyBank are in favour of. We are a payday loan direct lender,  and our service is designed to offer responsible lending to those who are in need of short-term loans and able to pay back within fixed and agreed repayment terms.