How to Effectively Manage Your Debts

It is not easy to manage your debts effectively. For a patient, the first step to cure is to accept that he or she is sick. This is the same with your debts. The first step to take for managing your debts effectively is to admit that you have those debts and you cannot expect a miracle for dealing with them. You have to start managing them or they are likely to spiral and get worse.

You can now take further steps to manage your steps after acknowledging your situation. You have to live within your means. You have to make a clear difference between your desires and your needs. Buy only what you need and not often what you want. This is the perfect time to reduce your expenditure. Do your best to avoid unnecessary items such as fancy clothes, high mobile phone bills, expensive dinners and other avoidable items.

You have to use the cheapest sources for your purchase. During your shopping, avoid buying the first item that you see even if you need it. Take time to compare the prices. If you buy at the cheapest price, you will save some money and avoiding debts. You can use this extra money to pay back a part of your existing debts.

Stay away from some activities that consume your money such as car-wash, services and goods delivery. If you can do these activities alone, do not hesitate. You will also need to generate more income when you cut down on your expenditure. You can start a small business or work part-time for more income. You can also offer your services to others in exchange of a fee.

When someone has serious debts, he or she can wonder if it is possible to stay way from debts completely. Some people in the past managed to live without a single debt. To control your debts does not depend on your income. Your financial discipline influences your control on your debts. If you want to stay completely away from debts, discipline your mind to buy only what you planned according to your budget.

Before to incur a debt, make sure that you are able to pay it back. If you manage your expenditure consistently, you can live without debts. Keep in mind that borrowing money is not a necessary step. Make a list of the items you purchased recently and separate the necessary items from the unnecessary; you will realise that some of them were not worth your money.

What is Specialist Lending?

Specialised lending or specialist lending is a loan secured by an asset that has to perform in order to back the loan. For example, a commercial building can be an asset in a specialised lending. This term is related to the funding of individual projects where the repayment is dependent highly on the performance of the collateral or underlying pool.

After the first half of 2013, competition in the sector of the residential mortgage increased considerably. While principal residential players seem to be creating a competitive and fully functioning marketplace, some lenders extended their appetite into more specialist niches. Specialist lending covers areas as various as secured loan, buy-to-let, shared ownership, complex prime and more.

However, through most specialist sectors, the appetite of lenders grows quickly and they recognise that some types of consumers are not the pariahs of mortgage that seemed to be in the past. Specialist lending targets consumers with unusual employment situations such as those with inconsistent incomes who want to buy non-standards properties. Even consumers with deposits financed by a third party such as builders or consumers with shared ownership can also qualify for a specialist lending.

Specialist lending is rising fast. Last years, levels exceeded £20bn in buy-to-let gross mortgage lending. This is an exceeding up a third on 2012. This year, some data suggest that it can reach £30bn if lenders increase volumes of business in other places such as non-regulated loans. The Loans Warehouse index says that last year, secured loans touched around £500m of lending. The West One index reports that over last year, bridging loans hit £2bn. This numbers are evidence that specialist lending is rising fast. Fitch reported that the levels of non-conforming lending increased last year. This report suggested that most of the consumers who qualified for a specialist landing had equity in their properties and strong affordability checks.

A consumer can ask for a specialist lending if he has a commercial property such as a real estate that can perform in order to pay back the loan according to the term. The lender will assess the property based on its risk. For example, there are some commercial real estates with a specific weight of risk. The grade may vary from lower to high volatility real estate. The way such property can perform will impact on the lending. The lender will calculate the risk weights of these assets.

For short term lending or payday loans, contact us today for more information.

5 Ways to Build Your Credit Score

At PiggyBank, we don’t believe in “no credit check loans“. However, even if you have a poor credit history we may still be able to help secure a short term loan. We understand that people with poor credit can struggle to get a loan. That is why we take other factors, such as your employment information and income and expenditure. That being considered, if you’re looking to improve your score, here are 5 handy tips. 

1. Accuracy

This is the fastest way and the first thing to deal with in order to boot your credit score. You have to find any mistake that can pull down your credit score and fix it. Your credit reports contain information about your credit score. You can use these reports to manage your accounts. Since identity theft is now on high rate, you need to have a close look on your account regularly.

2.Pay on time your bills

If you want to have an outstanding payment history, you need to pay your bills on time. This is the biggest factor to determine your credit score. If you have a damaged credit history, this is the best way to rebuild it.

No matter your past credit problems, the delay of payment, and the number of creditors involved, if your payment history for the past twelve months is good, the result will be noticeable. The information on your past-due payment will stay on your report for the next seven years. Meanwhile, you will still improve your score if you make constant payments on time. A negative mark on your payment history will pull down your credit score.

3.Do not reach the limits

In order to gain some points for your credit, you have to reduce the balances of your credit cards. If you have numerous credit cards, it is wise to spread debt between them instead of reaching the limit with a single card. Your payment history (35 percent) and outstanding debt (30 percent) account for 65 percent of your credit score. Instead of moving around, you will be wise to pay off your debt.

4.Choose the long term

The length of your relationship with your creditor accounts for fifteen percent of your credit score. If you plan to shop for another loan such as a mortgage for which you will have a good score, do not close any account.

Closing old accounts and opening new ones will affect your credit score negatively. It is an unwise move to make if you plan to apply for a big loan in short time. In order to build a credit history, you may need two credit cards but adding more card debt can pull your score down. It is better to keep low the balances of the two cards and pay them fast.

5.Compare rates

When you apply for a loan, the lenders will verify your credit. These inquiries can impact negatively on your credit score. Therefore, before applying for a credit card or a loan, begin by shopping and comparing rates. It is better to do all your shopping during the same month.

To check your credit score for Free, just visit Experian.

What is a Bridging Loan?

A bridging loan is a short-term loan that you can get for buying a house before selling your existing property. This loan establishes a bridge between sale price of a new property and the new mortgage that has been taken on it. The objective of a bridging loan is to offer the necessary fund for a smoothly process of a home purchase.

Even though, it can be expensive to take such loan, but at the end it will save you a lot of money. The term of the bridging loan varies from twelve to thirty-six months. This loan, tied to the equity of the existing property, comes with a high interest rate.

A typical situation explains how a bridging loan works. You took a loan to buy a new property while waiting for someone to buy your old one. However, your loan is not enough for the new purchase; a bridging loan will cover the gap. Usually, consumers use the bridging loan as a down payment for the new loan. Once you sell your old property, you can use the money to pay back the bridging loan.

This loan is not for anyone. The consumers who need it are most of the time landlords and property developers. However, since the recent financial crisis forced financial crisis forced financial institutions and banks to refuse large home loans, the bridging loan became popular among wealthy consumers who need an easy loan on residential property. This loan is particularly useful to consumers who want to sell quickly their property and buy a new one at an auction.

A bridging loan comes with some advantages. You do not have to start the repayment process as soon as you took the loan. You can wait two months before to begin the process. The bridging loan requires no qualification from consumers. The loan processing is very quick and this is a considerable advantage since time is a critical factor when concluding a deal on new house. If it suits you, you can request to cover the bridging loan into a regular mortgage later. This way, you will suppress the need to find another lender in order to get a mortgage for the new property.

However, there are also some disadvantages with this loan and it is important to know them. A bridging loan can cost more than a home equity loan. It can be difficult for you to make two payments of mortgage simultaneously, plus interest. You need to qualify for owning two properties simultaneously in order to get a bridging loan. This loan may be expensive because it includes appraisal, title policy, recording, loan origination, costs for escrow, and administrative costs.

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

Comparing Instalment Loans and Revolving Credit

Many people think of debt as a negative word. However, if you use it well; it can help you to buy the appropriate family car for your family, pay for schooling, or buy a house. On the other hand, a reckless use of debt can create a dark hole taking away your peace of mind, your credit score, and your money.

Nowadays, there are numerous options for the consumers to borrow money. Choosing the appropriate credit tool according to your situation may enable you to pay less in the short term while controlling your money on the long term. It is important to understand the difference between installment loans and revolving credit since there are basic types of credit.

Instalment Loans

We use instalment loan usually for buying things such as cars or homes. This loan comes with a scheduled period of repayment. For example, you want to purchase a car, you decide to borrow a specific amount of £2,500. You already know the amount of money you will have to pay each month and the length of the period you have to pay the full amount. This period is the term of the loan.

Consequently, you can easily work an installment loan in your budget. Such loan can also come with high competitive interest ranging from 5 to 7 percent. When you started paying back the loan, most of your money is interest. However, over time, you start paying an increasing part of the loan principal also. Experts call this increasing and steady reduction in the main amount, amortization.

However, if you need to borrow extra funds during the repayment period of the loan, you will have to use another form of credit or take a new loan because you cannot receive these additional funds through the current credit agreement.

There are two forms of installment loan including secured load that come with collateral such as home, boat, or car. The lender can confiscate this collateral and sell it in order to repay your loan. The interest rates of such loan are lower than those of unsecured loans.

Since the risk with an unsecured loan is high, the bank gives it with a high interest rate. The guarantee of repayment is according to your good reputation including your job status, payment history, and your credit score.

Revolving credit

These forms of credit do not have fixed agreement. The lender will require only a minimum payment each period and you can execute numerous transactions through the single agreement as long as you do not exceed the limit of credit authorised by the lender. The most popular type of revolving credit is credit card.

The rates of revolving credit change widely, depending on your payment history and credit. The range can be from 10%v to over 20%. The issuers of the card have the right to increase your interest rate if you are not able to pay your loan on time.

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

Comparing the Competition in Instalment Lending

Since the world in which we are living is not stable, we can face emergencies requiring quick cash. The need may be so immediate that we are unable to wait for the payday even if it is just in two weeks. In that case, installment loan may be useful.

Perhaps you do not have a friend or a family to ask for a loan or you do not have a property to provide as collateral for a loan. In that case, the only way to meet your need is an installment lending. If it may be easy to borrow money, paying it back may be tougher. Some lenders can offer the option or repaying the loan only in one lump sum or maybe two. Other lenders want to meet the demands of the borrower for easier terms of repayment. These lenders are offering special loans withy flexible schedule of payment. These special loans are installment loans.

Since you are already in distress, you do not need to add stress of being under obligation of paying back a large amount of money in a short period. Installment loan may be a relief for you. Installment loans allow for repayment in small steps. In many cases, the lenders can ask you set up the amount of the payment you will pay back and the schedule that can be weekly, biweekly, or monthly. You determine the amount and the frequency without pressure.

It is easy to qualify for an installment loan. However, before to approve your application, most lenders have some requirements such as a valid ID with evidence of age (18-21 years old depending to the state), evidence of residence (an utility bill with a matched address to the one on your ID), a bank statement proving a valid bank account with direct deposit, evidence of employment, and a salary of at least $1,000 per month.

Since installment loans are unsecured loans, the lenders can face a risk of non-payment. This is why the interest rates may be high. However, due to the high demand of consumers for personal loans, many lenders entered the market. The results of such competitions are lower interest rates. Therefore, it is wise to shop around in order to find the best interest rates and the suitable repayment terms for you. Keep in mind that even a difference of one percent can save you a lot of money over the repayment period.

What is a Guarantor Loan?

Sometimes a short term loan is not going to match your needs. It may be the case that you need more than £1000 or it may be that you can’t afford to pay off your short term loan in one go a month later. If you have been refused a short term loan it may be because you are unaffordable and therefore cannot repay the loan in the specified time, which is usually one month.

When this happens we often feel that there are no options available to us, but there are options available. A Guarantor loan is one of those options. A Guarantor loan works in a similar way to other forms of credit except for one crucial aspect. You must have a friend or family member who can back you up if for any reason you struggle to make a payment.

Acting as a Guarantor can help the borrower, not only to obtain the funds they need, but you may also be helping them to improve their credit rating which could have a positive impact on the way their finances are looked at in the future. Your Guarantor must be at least 18 years old. Traditionally Guarantors needed to be homeowners. However this is not the case anymore and non homeowner guarantor lenders may be able to help. In order to qualify for a guarantor loan the following criteria must be met:

Applicant:

  • 18+ years of age
  • UK bank account
  • Valid UK debit card
  • Free of Bankruptcy or IVA claims
  • UK resident (excludes Isle of Man and Channel Islands)
  • Regular income
  • Be able to afford the monthly repayments
  • Able to acquire a Guarantor

Guarantor:

  • 21+ years of age
  • UK bank account
  • Valid UK debit card
  • Free of Bankruptcy or IVA claims
  • UK resident (excludes Isle of Man and Channel Islands)
  • Good credit history
  • Be able to afford the monthly repayments

If you need some extra money, but are unable to obtain a short term loan or you cannot afford to repay the loan in a short space of time, then you can apply for a guarantor loan and receive the money within 48 hours.

Short Term Lending in the UK

Short term lending is the financing of someone in need of cash. This is done with a quick repayment schedule. It is always offered for a short period of time as it possesses short maturity dates that are significant. A short term lending repayment schedule does go from ninety days but this varies with the companies that you lend from. Short term lending is very common all over the world as well as in the UK. Here are some of the best short term lending companies in the UK.

Zopa is a London based lender offering loans of up to fifteen thousand euros with individual borrowers dealing directly with lenders. This company categorizes borrowers based on their credit grades so they offer their terms and amounts of money based on the category of the borrower. Ratesetter is also London based. Here borrowers pay a credit fee that is used to diversify the risk by reimbursing lenders in the event that they pay late or default with the money lent to them.

IBanker is the first one to allow the cross border lending to all the EU countries. It is probably the oldest and a pioneer of social lending in Estonia. Funding Knight allows borrowers and lenders to transact directly to each other having a membership of minimum five hundred euros and can lend up to one hundred euros to small businesses that are planning to expand. These are some of the best short term lenders in the UK. You can explore them and see their rates and further information or rather you can check out for others which are also categorized as the best.

Before being lent some money in the UK, it is essential that you establish the best loan for you as well as know how long you will need to repay the money. Check the application criteria as most relate to your income and credit rating. You should know the cost of paying up the money. In short be sure to know the interest rate and determine whether you are able to repay it within the stipulated timeframe and check out its flexibility.

How to Save Money on Bills

Bills, bills, bills, these are some of the stressing things that when you think of, you get tired. The cost of living expenses never seem to end and it also increases day in day out. Among the bills that give you headache are water bills, electricity bills, water bills, cable bills, cell phone bills among others. If you work out some of the solutions you can save on some of the bills. Here are some of the tips that can work out for you.

With the rapid growth of technology, internet has become part of our lives as most of the things are done through it. It isn’t bad to use internet but you should use it to a limit to save on your bills. A good example is , if your internet usage entails just surfing the web or streaming movies, what do you need a high speed internet for? This question you need to ask yourself. A lower internet speed is just sufficient for your need unless you are working with it in your office. This is a good way of saving some money on your bills.

What is the need of having a cable TV if there is the basic cable TV? Cable TVs are rather much expensive than the other one. Cut on this expense by switching to the basic cable TV as it also streams everything that you want to watch movies through websites. This applies to people who are middle and low income earners not excluding the high income earners who are in need of saving some cash on their bills.

Many people have subscribed to the unlimited data of internet on their smartphones. What is the need of this? Unless you work in the social media industry or use your phone while working. Subscribing to unlimited data that you do not need or do not use daily is wastage of funds. They can lead you to having debts that you had not planned for. If you are considering a cellphone plan, consider a plan that is not so expensive.

By being more energy efficient in your home, you can save money on your energy bills. Among the ways to save money on energy bills are: Use an energy saving bulb instead of the common bulb. This saves energy twice or thrice than the normal bulb, you can also do your laundry using cold water and insulate your water heater. These are just some of the ways to save on your bills.

For more information on long term lending contact today.

How to Use Price Comparison Websites

A price comparison website allows individuals to see the different price lists for different specific products. Most of them do not sell themselves but they do source prices from the retailers. Using price comparison websites is a smart way of comparing the newer financial products and whether they have better deals out there. It is important to using these lists when a new product has been introduced in the market but these sites ought to be used wisely and one should be aware of the pitfalls before logging on.

Since price comparison websites cannot claim the whole market, it is therefore very important to use a variety of price comparison sites in search for the best financial products. Run your search watching out for any slight differences that arise. Some of the financial product providers such as insurance policies from the likes of Direct Line choose not to be featured on price comparison sites. It is because they do not subscribe to the comparison sites. It is therefore important that you get quotes from them directly.

You should beware of assumptions that could invalidate your insurance as some make assumptions when you visit them. Be careful to check out on them and provide the correct details and provide specific information. For example if you have insured your car against theft and it once had an accident, provide that too and do not assume. When using a price comparison website and you are not confident that the price you have been presented with is the correct one, you can call them directly to be sure. Ensure that you tick the right boxes. Pre ticked boxes do feature on price comparison websites and ignoring them or failing to change them could have consequences.

These price comparison websites main aims of establishment are to find customers the cheapest deals possible. It is therefore important to check out on the quality of the deal as well as the cost. When in search of the best deals, you should also focus on getting the value of your money. Therefore you should go for cheaper deals and avoid the cheapest ones having in mind the saying that cheap is expensive.