Loans Blog

It's regarded as a seedy underworld by some, but more and more of us are turning to pawn as the credit crunch tightens its grip on our finances.

As the banks who once liked saying 'yes' line up to say 'no', pawnbrokers are gaining in popularity as a place to get a fast and easy secured loan against property of value.

Getting a car loan is, thankfully, one of the types of personal loan that is still relatively quick and easy to arrange. In most cases the car will act as security on the loan, just like with a mortgage, so the lender is happy with the associated reduced risk.

Andile Mpambani, from Khayelitsha, is feeling hugely relieved to keep his home after his lender had issued him with a sale of property notice all because his bond installments were paid into the wrong bank account!

He was informed that his house was to be sold on Thursday at 10am, but fortunately a bank error was cleared up before he had to clear out.

The mix up happened simply because he'd been given the wrong account number for a personal loan he had taken out, meaning that his payments had unknowingly been going to the wrong place!

The lesson: Type those numbers in carefully and keep track of your statements to make sure everything is going where it should be!!

If you've got equity in your home, you can use it to get a secured loan fairly simply. Great. But hang on, what's that loan for?

If you're considering taking a secured loan against your home to pay off credit card debt, then you should be mindful of some crucial facts. Your credit card debt is basically an unsecured loan - meaning there is no collateral for the lender to repossess from you if you default on the payment. If you effectively convert this debt into a secured loan, you could end up losing your home as a result of any failure to meet the agreed payments.

If you need to know what's the best kind of loan to suit your individual circumstances, you can have an informal chat with a professional advisor today by calling 0844 560 7703.

Bridging Loans for short-term financial obligations are easy to arrange because the loan is backed by collateral, so the background checks required are less extensive than with other kinds of personal loan.

This can make the whole process of arranging a bridging loan surprisingly quick and easy.

Secured loan company, Endeavour Personal Finance, has said they will not be accepting any further applications for new business.

A spokesman for the parent company, HFC, said, “We have conducted a review of the business and as a proportion of our bank’s business, EPF is tiny and doesn’t fit with our distribution channels.”

Well done on your new qualification! Now start paying for it!!

It's a sad truth that in the pursuit of the qualification that you ultimately hope will improve your income, you will inevitably incur a considerable amount of debt, these days.

Student debt can be a hugely negative factor when trying to get on with the next chapter of your life and build your new career, so it's best to take charge of the situation as early as possible and make sure you are in control.

One solution to balancing debt repayments and maintaining an affordable and, more importantly, enjoyable life can be debt consolidation. A consolidation loan can help you to set in place a plan to repay your debts at a rate that suits you more comfortably if you are struggling to make ends meet. Then you can get on with your life, safe in the knowledge that your repayment plan is working for you, not the other way around.

Experian has issued the advice that borrowers who find themselves in various situations of financial difficulty should talk to the lender or a free financial advice service if they are considering a consolidation loan.

Experian said that a consolidation loan can help people with unmanageable debt, but they should be aware of the other options available.

James Jones, of Experian, commented: "Debt consolidation is one of a range of options. I would encourage people to always speak to their lenders if they are struggling to make payments and if they feel the situation is getting out of control, they should seek advice from one of the free advice agencies, from citizens advice, or national debt line.

"They can help you to decide what the best solution for you is and can negotiate on your behalf which can be a very useful route to take."

Oh my God! I ate one tiny piece of chocolate cake yesterday and I've put on about ten stone!! It's not fair, Jennie from the commercial loans department eats about seven bags of crisps a day and still looks like a rake.

I need to be thin before my date on Friday. There just isn't time! If only I could make some kind of deal to get the body I want instantly and then do the exercise afterwards to pay for it... a bit like a bridging loan for fatties!

Debt consolidation, or loan consolidation as it is sometimes called, is a great lifeline for those drowning in multiple debt repayments.

However, what they don't shout about on the smiley TV adverts is exactly how these loans work. Yes, you will enjoy the luxury of lower monthly repayments, freeing up some cash to enjoy life again. But you will repay more in the longer term as the life of your debt is extended to allow the lower monthly repayments.

There's nothing sinister about this - it's just worth making sure you understand completely the terms of the consolidation loan you are agreeing to before it's too late.

As with any loan, check carefully and always seek professional advice to get the best deal for you.

According to Transact - the national forum for financial inclusion, an increasing number of people are struggling to make ends meet. They say that a secured loan can be a valuable source of funds to overcome this growing problem.

Jamie Elliot, of Transact, said: "People have been proactively encouraged to take out a huge level of debt at a time when credit was relatively cheap. But now, money is much more expensive and people are coming off fixed-rates... A large number of people are already very stretched.”

When you take out a secured loan against your home, you want to know that the value in your home will continue to cover the amount you owe.

Better still, you hope it will become worth more than the amount you owe.

So, if the loan is for home improvements, then you should be adding value to that home - as well as adding peace of mind in the knowledge that your home equity is growing beyond the value your loan repayments.

Ways to avoid running up debt:

1. Try to maintain a lifestyle that does not exceed your income. Review your household budget closely, and clamp down on non-essential spending. This can actually be a satisfying achievement if you view it as a challenge, not to mention the health benefits of a few less nights out etc.

2. Pay off the balances that carry the highest rate first.

3. Do not take out cash advances on credit cards.

4. Cut out non-essential credit card spending. If you can't afford a holiday without reaching for the plastic, just do without for this year. You could spend time freshening up your home instead - adding value to your investment instead of running up more debt.

There's nothing here that isn't pretty obvious, but are you REALLY doing all of these things? You'd be surprised how many people say they know all this stuff, but bury their heads in the sand when it comes to actually practicing it. Debt consolidation is increasing and it can be a good solution for those who really need it, but it's better to avoid getting into that situation in the first place, if you can.

A commercial bridging loan is a simple, short-term kind of loan that enables you to borrow a lump sum of money in order to purchase land or property right away.

This is typically used in a scenario where you also have land or property to sell - repaying the short-term loan when the sale of your existing land or property is completed.

A charity offering advice to people who find themselves with unmanageable debt problems, The National Debtline, has reported an increase in calls to their help line.

A spokeswoman said: "We have seen a 20% increase in the number of people who have been calling our helpline. The debts they need help with include mortgages and also loans secured against their properties."

Secured loan applicants are on the increase, with unsecured loans becoming harder to find. It's vital to remember that the risk associated with secured loans can be high - especially if you take out a second mortgage on your home, without setting realistic repayments.

If you're considering seeking debt consolidation, then the chances are you're in need of it.

The more time that goes by, the more debt you are incurring in terms of interest. Act now to reduce your monthly outgoings and make your finances more manageable again.

Don't be too hasty, though - remember to take time to read all the terms of any personal loan agreement and know exactly what you are agreeing to before you sign up.

You can get a personal loan for just about anything (anything legal, that is!)

The main obstacle to obtaining a loan is not the purpose, but rather your ability to repay the sum you borrow.

So, provided you tell the truth about what the loan is for, and about your current personal financial circumstances, you can't go far wrong.

It's becoming increasingly difficult to arrange a personal loan these days. Credit is far harder to obtain in all areas, as lenders start twitching about the risks in the current financial climate.

This has inevitably led to an increase in the uptake of secured loans - usually secured against the value in the home of the borrower.

However, it's important to see the risk associated with these loans for what it really is. The question you should be asking is not "How can I get a loan?" - it's "Can I afford to get a loan at all?"

A loan is not something you should take at any cost, regardless of the level of risk. It's a harsh reality that you could end up losing your home if you take a secured loan that you can't manage to repay at the agreed level - after all, that's why lenders will still offer these kind of loans because the risk lies primarily with you rather than them.

Whatever you want the cash for, it's rarely worth losing your home over.