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



  • 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.


  • 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.

Reduce Your Water Bills Using These Tips

This is such an expensive time of year for everyone, so any way you can reduce the cost of your bills is useful. Water bills are a significant cost when running a home especially if you have a large family who are showering and bathing constantly. Washing clothes, preparing food, cleaning cars and watering the garden all impact on the amount of water that British households consume. Here are a few ways of cutting your consumption.

  • If you are on a rated water bill then you will pay a set amount that has been fixed according to the value of your home which is the same regardless of how much water you use. Switching to a metered supply could cut your bills as you will only be paying for what you are using. They are fitted free of charge by water companies so it’s worth considering. Watch your bills reduce with how much water you save.
  • It is estimated that each person uses approximately 150 litres/270 pints per day so if you have a quick shower instead of a bath you could be reducing your usage significantly as an average bath uses 80 litres of water compared to a shower that consumes 35.
  • Always turn the tap off while you brush your teeth. This wastes such an unnecessary amount of water.
  • It may be a time saving device, but think about washing up in a bowl of water rather than using the dishwasher constantly. A sink will take about 6 litres of water and a machine will use approximately 55 litres on a cycle.
  • Get a water butt and use the collected rainwater to water your garden, a garden hose uses a whopping 10 litres per minute.

For more information on long term lending contact today.

Take Control of Your Finances

Post-Christmas debt affects many people in the UK. Balancing the household income along with the January blues can take its toll on many of us. Keeping on top of debt can keep us awake at night, causing untold financial problems, let alone the emotional flip side to this tarnished coin. There are solutions out there to help manage day to day money worries so getting practical advice and tips can help you take that control back.

  • Knowing what your debts are is a good start, make sure that you have opened all of your post and spend some time sifting through what money you owe. Being disciplined will bring a sense of control back to any situation.
  • Create a plan that allows you to keep track of where your money goes every month, be vigorous, and keep receipts for everything. After a month of watching where your money goes it will be possible to see where you can cut back. Those morning take away coffees add up! Simply begin by reducing your spending on the unnecessary items or treats in your life. However painful this will seem, the desired outcome will look far rosier.
  • The citizen advice bureau and other charities are there to help, plan a debt-free future by implementing a plan to pay off your creditors. They will help you to create a budget and work out who to pay first and what the next step is if you cannot afford to pay your bills.

For more information on long term lending contact today.

What’s been happening to the Big 6 energy providers?

The Big 6 energy suppliers got a big slap on the wrist from Watchdog last July for leaving their customers on the most expensive tariffs. So how can you avoid paying over the odds for your heating and electricity, especially during these harsh winter months?

  1. Switch and save, rather than paying the highest costs for your power supply, always switch to a better deal. There should never be penalty charges or exit fees for doing this, so make sure you don’t get hoodwinked into staying. There are no loyalty schemes fixed to energy suppliers, so never worry about switching to save money, particularly at this time of year. This winter has been forecasted to be one of the coldest we are going to experience for years, so save those pennies as the heating is going to be on for much longer in 2016.
  2. Always give regular meter readings to your supplier, this will stop the energy companies from giving you generic estimates and charging you accordingly. It will ensure that you only pay for what you use. This is very important if the estimates have been too low, as the meter reading may well be higher, meaning that you could pay more for what you have already used. Everyone wants to avoid a ‘catch-up bill’. Contact your supplier to make sure that any extra units costs are spread over the whole billing period.
  3. Read your meter and contact your supplier the day that there is any price increase so you never get charged too much for the period before the increase.

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

Payday Loans – FCA Cracks Down on Irresponsible Payday Lenders

Akin to the United States, people in the United Kingdom are able to take out short-term loans until “payday”. These payday loans are advertised especially to those strapped for cash and in need of making an unexpected purchase. They are dished out with the expectation that the customer will repay within days or months, depending on the firm. One can avail payday loans in need of cash within minutes. In general, clients can apply for £50 upwards to £1000 for a given amount of time.

A Never Ending Cycle of Debt

Like other types of loans, late fees, extra interest and mounting debt plague those who cannot repay in the interim. The bigger controversy derives from firms alleged predatory role in trapping customers in a never-ending-cycle of debt through payday loans. In 2011-2012, as many as 8.2 million loans were estimated to be taken out by roughly 1.5 million clients. With astronomical APR’s set by lenders, the borrowed pocket change becomes more of a hassle than a quick way to pay off a utility bill or a family emergency crisis.

FCA Could Help the Borrowers Somehow

To combat this, the Financial Conduct Authority (FCA) imposed several regulations on lenders in response to mounting debt and ever-increasing revenue. The FCA has cracked down on irresponsible practices by enforcing lenders to assess borrowers’ repayment ability, requiring documentation to prove the client can repay the lender. They have also capped interest at 0.8% for each day a client borrows money. If they fail to repay on time, late fees may not exceed £15, whereas in the past clients could get hit with £20 or more. Most beneficial to the millions of borrowers of payday loans is that the total cost for taking out a loan will never exceed 100% of the original loan. This ensures that every client will never have to repay more than twice the original amount.

These regulations were put in place in early 2015 so customers would actually have a “payday” that isn’t compromised by irresponsible lenders. The FCA plans to examine the effects of these regulations and review all caps in 2017.