 |
«A website where you can find the lowest interest rates on home loans with absolutely free quotes from multiple lenders» |
| • Home Equity Loan • Home Refinance Loan • Home Purchase Loan • Second Mortgage Loan • Debt Consolidation Loan | ||
|
 | |
| |
| Home Equity Loan Store :: Debt Relief | |
|
|
|
British Families and Debt
There is current concern from the Bank of England that British families are getting deeper into debt, however, it has been said that lenders are putting themselves at risk because people are now more willing to make themselves bankrupt. Despite people already having significant amounts of debt, credit card companies are still prepared to lend these people money. This is a combination of a creditor not knowing the full picture of a persons financial commitments and employees of credit card companies being under pressure to sell credit cards and insurances policies to earn bonuses. People will receive random telephone calls from companies who will try to sell the benefits of their cards and use the selling point of lower rates plus the option to transfer the balance from their current credit card at a lower rate. Many people who receive these calls may already be in some kind of debt. There possibly will be some who are currently looking for solutions to their debt problems, and the temptation of obtaining a new card thereby having more spending power could prove hard to resist. The Bank of England has every right to be concerned about the financial state of this country, but possibly the lending system needs to change to make it more difficult to obtain credit. Lending companies blame the debtor, and the debtor blames the lending companies but who will stand up and make a difference when it comes to the huge family debts the UK are currently experiencing? We have already been made aware that borrowing in the UK has crashed through the 1 Trillion pound barrier, but surely this should provoke concern rather than just being a headline in a newspaper. The Government are concerned with raising financial awareness, however, what restrictions do the lending companies have? We know that a new Bill is currently in motion, which was first mentioned in the Queens Speech back in November 2004 and is set to come into effect in mid-2006. This bill will give creditors more rights over debtors rather than placing any restrictions on how creditors lend money. Yet another case of suicide due to debt is circling the Internet. 43-year-old Mark McDonald's body was found on a railway near his home, with him was his rucksack containing 80 letters from his creditors regarding monies he owed which mounted up to 65,000. Mr McDonald is now the 5th known person who has taken his life due to debt in the last 2 years. Others include a 21-year-old farm worker who owed 10,500 and a 65-year-old grandad who owed 135,000. If people were more aware of the free financial help that is available, perhaps they would realise that borrowing more money to pay off current debts is not the way to ease their financial situation. Debt Management Companies such as Payplan (http://www.payplan.com) offer free financial assessments and Debt Management programs which work around peoples current incomes to find the best solutions to debt problems, it is hardly ever necessary to borrow more money to resolve financial difficulties. Perhaps there should be a system in place, which allows a lender to see whether or not a person can afford either a loan or a credit card before making a decision whether to lend money. Creditors currently say that they will only lend money if the applicant meets their criteria. However, if people are still able to borrow money when they cannot afford to pay it back, then the criteria fails to give a true representation of whether or not the applicant is able to repay. Information supplied through the credit reference agencies do not show the full picture to a lender when making a decision to lend money, either that, or the credit companies are not taking full advantage of the information provided. Some lending companies will lend you without question half of your annual income, not taking into account what you already owe. These are the things that need to be addressed when lending money. Both lenders and borrowers alike are responsible; therefore, tighter restrictions need to be applied on both sides. We can only rely on the Government to recognise the problem, and do something to resolve the current state of lending and borrowing in this country. Debt in the UK crashing through the 1 Trillion pound barrier is not something to be proud of; it is something that needs to be addressed now! Nicola Bullimore has been working with people regarding debt issues for a number of years. For more information, please visit Debt Questions website
MORE RESOURCES:
Eurozone finance ministers to discuss Greek bailout, debt relief deal on Thursday - Cape Breton Post
Greece: European Central Bank, other central banks must be part of debt relief ... - Washington Post
Greece sees debt relief deal 'very soon,' but eurozone members press for lower ... - Washington Post
Google News |
|
|
|
RELATED ARTICLES
Free Quick and Easy Money Saving Tips - Part 2 Although many consumers would argue differently saving money doesn't have to be difficult. In fact by making just a few changes in your normal lifestyle you can find ways to free up extra cash that can be put to better use in a savings account or an investment account. Debt Settlement -- Why the Critics Are Wrong After October 17, 2005, a lot of people are going to become interested in debt settlement as an alternative to bankruptcy. That's the date the new bankruptcy law goes into effect, and it means a rude awakening for many consumers seeking a fresh start in bankruptcy court. Reduce Your Debt With These 5 Tips It's never pleasant to realize that you're in financial hot water, but pretending the situation doesn't exist is NEVER the way to deal with the problem. If you're having trouble meeting monthly payments, find yourself borrowing or using credit cards to meet daily expenses, or have one or more of your credit accounts turned over to a collection agency, it's time for you to get proactive and bring your debts back under control. What is Bankruptcy? Here is a useful guide to bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice. Personal Bankruptcy: Last Option To Legally Stop Bill Collectors Do you have stacks of unpaid bills?Are you in debt?Are bill collectors hounding you?Are you frustrated and annoyed and wish to get them off your back?If you answer yes, then pay close attention.Filing for a personal bankruptcy may be the last option for you. Debt Negotiation and Debt Settlement Debt negotiation and settlement can give you a drastic reduction in the amount of debt you owe and allow you to repay your debts in a much shorter time. Resolving your debts is important to your well-being and financial stability. New Bankruptcy Law - Where's the Consumer Protection? On April 20, 2005, President Bush signed into law the Bankruptcy Abuse and Consumer Protection Act, a piece of sweeping legislation that brought about the most sweeping changes in personal bankruptcy law in the last quarter century. This bill, which takes effect in October 2005, passed with the overwhelming support of both parties of congress, claims, through its very name, to offer "consumer protection. Establish Money Saving Goals For Added Success Having something tangible to strive towards can work wonders for your money-saving efforts. To those of you that have already been actively implementing money-saving tips in order to lower your monthly bills, for added inspiration, establish a meaningful goal along with a specific dollar amount. Debt Elimination Is The Key to Financial Freedom If you want financial freedom, the first thing that you will need to do is to get rid of your debts. After all, as long as you owe money, you can't consider yourself to be financially free. A History of Money and Banking Secrets That Banks Dont Want Published A History of Money and TradeTo start with a history of money and debt, we must go back many years ago when people used to trade their wares for the things they wanted and needed.In place of money or Federal Reserve Notes, you could trade a well made pistol for a cow, which you could eat or trade a remainder of for other items like clothing. How to Become Debt Free In today's consumer society it is all too easy to get into debt. If you have a few credit cards, car loan, mortgage and possibly student loans it can easily add up. IVA: Individual Voluntary Arrangement What Is an IVAThe IVA (Individual Voluntary Arrangement) was introduced by The Insolvency Act of 1986 as an alternative to bankruptcy which benefits both the debtor and the creditor. An IVA enables people facing financial difficulties to come to a formal agreement with their creditors rather than having to face bankruptcy. Life on a Debt Management Program Signing up for a debt management program is easy; it's a matter of finding a company you feel comfortable with that is difficult. There should be no pressure added from the company you speak with, joining a DMP is your decision and you should feel like you are in a partnership with the company, meaning you both have control over your financial situation. 5 Options Toward Debt Relief If you are in debt, well over your head in debt that is, there are options to help you overcome this situation. Let's examine five possible responses and uncover which ones lead to true debt relief. Drowning in Debt? Tips and Tricks for Getting Out of Hot Water with Creditors Do you, like millions of other Americans, feel like you're sinking in an ocean of credit card debt? Well, fear not--there are many options for reducing your debt way before you have to be concerned about receiving notices or daunting telephone calls from debt collectors. The important thing to remember is to be proactive in handling your credit card debt. Is Debt Negotiation Bad? Educating yourself about the ins and outs of debt negotiation is a good first step. Please note that the term 'debt negotiation' is also known as debt arbitration or debt settlement. Student Loans Can't Be Swept Away Through Bankruptcy Bankruptcy is in the news these days, as Congress has finally overhauled the Federal bankruptcy law after years of talking about it. The credit card companies, rightly or wrongly, have been pressuring members of Congress to tighten the bankruptcy statutes, saying that too many people were willfully spending money they couldn't repay with the intention of avoiding paying the money back by filing for bankruptcy. Ten Ways to Get Out of Debt 1) Use your AssetsIf you have assets with some significant equity, such as a home or a car you may be able to use these to get control of your debt. For example, you could get a loan on your home sufficient to pay off your debts. Solutions to Single Mothers in Debt As a single mother, lets admit it, times get tough. You are fortunate enough to have your children that mean the world to you, but it doesn't come cheap. Can You Escape the Trap of Ever Growing Debt? It's difficult not to be concerned when facing numbers like these:43% of U.S.
|
