Good debt vs. bad debt

Just about everyone will have to borrow money at some stage of their lives. Most wishing to own their own property will borrow on a mortgage but even those looking to acquire a car may take out a personal loan or lease plan.

Sometimes there are great deals around that are hard to decline. Take, for example, many of the low cost credit deals offered by car manufacturers.

These are a great way to get a new car at very affordable rates of interest.

Deals like this can be classed as ‘good debt’ since they are amongst the lowest cost way to borrow one can find. Especially if you already have the cash available where you can invest in a high interest savings account and make more on the interest than you lose on the loan charge!

The key with any form of debt is making sure that the payments remain affordable even if personal circumstances change. That means if the hours available to work are reduced and the net family income drops, the payments are still affordable for at least six months.

Easy credit is now a thing of the past. The number of providers has reduced dramatically since the early ‘noughties’ and those that are in the market are looking for good quality customers.

That means borrowing whilst your credit history is in tip top condition and you have a provable source of income. Without either of these, the rates and terms on offer may be less attractive.

So, good debt can be defined as debt that is affordable and comfortably repayable within the available family income.

But circumstances in these uncertain times can change fast meaning that what was once affordable now becomes unaffordable.

When debt gets out of control it eats away at family life and relationships. Cutting spending and making savings can generate some spare income each month but more extensive action may be needed if payments are higher than free income.

If there are just one or two lenders (for example a mortgage loan and car loan) then it should be easy to speak with them and try to arrange a reschedule of the payments over a longer period of time.

Provided you are up to date with the payments then most lenders will listen sympathetically to a request for changed payments provided the proposal is sensible.

Even if you have started to miss a few payments, it should be possible to get a payment plan agreed that allows the family to live on a day to day basis without the fear of repossession or legal action.

If there are a number of debts and it is not clear how to move forward, it can pay to enlist the help of a specialist debt management company. As they deal with lenders every day and know what will be acceptable, they can help drive the best deals to get you back on track.

It may be worthwhile paying a small fee to have help sorting out your finances rather than struggling on and getting into a worse mess.

There are also a few good debt management websites that can help shed light on what is available to those with debt problems. You can read more for help on sorting out your debt problems at moneysupermarket.

How to obtain comfortable financial lifestyle

Comfortable Financial Lifestyle

Comfortable Financial Lifestyle

Comfortable financial lifestyle can be ascertained by opting no medical life insurance and personal loan in one’s life. In a family, you will have to face a lot of problems to overcome these difficulties many companies have introduced personal loan and no medical life insurance policies. Single member earning families will lead to difficulties in maintaining the family health or medical expenses, in such cases it is good to have a life or no medical life insurance policies.

The effective means to substitute the loss of earnings that occurs when somebody passes away is the life insurance. It will offer the family with monetary support. Financial safeguards will be provided to your family. It also suggests you about various plans of money saving plan to the life. Many may not even be able to afford certain high rates in the life insurance policies in such cases cheap life insurance policies are provided.

No medical life insurance is usually offered to people who are fit and healthy. The easiest way to opt for no medical life insurance is to buy level term life insurance.

Importance of no medical life insurance is as follows:

  • Economic movement will be made easier.
  • Financial security will be needed.
  • It helps in tax exemption.
  • It is probably designed for those who are unable to pay high premium costs.
  • Term life insurance is the cheapest form of life insurance.
  • It is prudent enough to look up to its pros and cons.

You can remain financially safe in need of treatment costs through health insurance. It is an insurance which is needed when someone is sick or unwell. If they opt for a health insurance policy, costly and effective medical services can be received by the patients. It is the coverage of risk against health expenditure.

There are many options regarding personal loans such as homeowner, secured loan and many more. The best personal loan offer wide coverage to the people who are looking for short term loan and loans for personal property. Any individual who apply for personal loan will be offer low deductibles.

Importance of personal loans:

  • Adopting personal loan is an important financial plan for you and your family.
  • It’s an efficient way to owner or buys high quality property.
  • It protects the interests of the people suffering from one financial problem or the other.
  • It is flexible in repayment, with fixed rates, payment holiday and covers a wide variety of service.

Adopting a personal-loan.org.uk and no medical life insurance policies will make life more comfortable and even improve your lifestyle.

The Statistics of UK Credit Rejection

Being rejected for a credit card or personal loan can have a detrimental effect on your credit rating, but if you have been rejected over the past 12 months, you’re not alone.

According to a survey of 2007 British adults (commissioned by Moneysupermarket.com and carried out by Opinium Research) a quarter of them were turned down for a credit card or loan.

Taking the total number of adults in Britain to be 49 million, the research claims that 36 per cent (17.6 million) have applied for credit, and therefore nearly 4.5 million (25 per cent) of those have been rejected for credit.

People living in the West Midlands, it seems, are most likely to be accepted for credit, as the figures reflect an 85 per cent success-rate for credit applications in the region.

UK Credit Rejection

UK Credit Rejection

Those living in London only had a 62 per cent chance of being accepted for credit though, according to the survey.

This infographic conveys the scale of credit-rejection across the country, broken down by age, gender and region.

The data shows that men are more likely to be rejected for credit cards or personal loans than women, as 30 per cent of the males who participated in the study said they had been rejected, compared to 24 per cent of women.

More than a third of 18-34-year-olds surveyed admitted they had been rejected for a credit card or personal loan, whereas just 12 per cent of the over-55’s said they had been rejected.

Making several applications for credit within a short space of time can be detrimental to your credit score. Each time you make an application; the lender makes a check of your credit profile and leaves a ‘footprint’ of the check, which is then visible to other lenders when they make subsequent checks.

It is believed that people with more credit applications tend to carry a higher credit risk, creating a catch-22 situation.

On the other hand, having no discernable credit history can also go against you in the credit application process. When lenders assess your application, they are trying to judge your ability to pay back the amount you are borrowing. If you have no credit history, then the lender has one less point of reference to aid them in making that decision.

For a small fee you can check your credit score online with Equifax or Experian to make sure your credit report is up to date and is accurate. If you notice any discrepancies you can contact the lenders in question to have the mistakes rectified.

Security threatens in personal loan

The most vulnerable personal loans are for amounts up to $ 15 000 can you find some companies that have a greater amount of credit, but that is the standard amount of the loan in the industry. If you know you have an insecure personal loan for more than 15 000 dollars, you can try for two or more such loans from different companies.

Personal Loans

Personal Loans

Unsafe personal loans can be used for many things. If so, it is very important for you all payments on time. You want to repay the loan as soon as possible. Not only that would look cool on your credit report, but you can save money in interest. Other applications for an unprotected personal loans, holidays, home repair, reconstruction, repair of vehicle, education or medical expenses. The possibilities are endless.

One of the major advantages insecure personal loans is to consolidate other unsecured debt. This is often credit card debt. Amount of interest you pay for non-personal loans are usually less you pay if you pay only for each credit card you are considering consolidation. You just have to make another payment each month. It is very important that you do not charge your credit card after the merger with insecure personal loan. In this case, financial disaster is likely just around the corner for you. Verify that solid budget and financial plan in place. There are many places to protect the personal loan. You can do this, the bank put on the account or even a credit organization. On the Internet there are many enterprises unprotected personal loan. You can fill out a form on a Web page and have a response within a few minutes on the status of your loan application. The procedure is rapid, safe and excellent choice for people interested in a loan officer, shame and demand money.

Be careful if you decide to apply for an unprotected personal loan online. There are many reputable companies out there, but there are only so many attacks. They often rob those wishing to take the money. You can check the online lending companies, check with the better business office. You can also search the Internet for reviews of other users of the company.

If you cannot find information about the company, anywhere, stay away from him. There is a good opportunity for companies running scams and constantly changing his name to avoid. Internet Loan Company should never ask you to send an application fee or the Commission.

Unsafe personal loans are a good way to get money for other needs. They are usually easy to achieve, regardless of your credit history. Eye view is a good price. Do not forget that the price will be slightly higher than in secure, personal loans. With any type of loan, make sure you have the money wisely. It is very important, financial security. Just because there are no guarantees attached to the loan does not mean that they are not easily return. This will seriously weaken your credit rating and credit score. It will also affect your ability to insecure personal loan in the future.

-------