The credit crunch has had people and banks alike becoming more careful with their money. Currently banks are no longer offering the rates they may had before the credit crunch but despite this, customers are still turning to the banks for loans.
Consumer loans through personal loans and other forms of finance such as credit cards has soared its highest total for five years. Recent research conducted shows that consumer debt stands at £2.35 billion and a total of £350 million is due to outstanding debt on credit cards.
You can still obtain the better deals when you choose secured loans because there is less risk than unsecured loans. The rates on personal loans have risen considerably by 11.4% from just 10.6% in January, this has made obtaining a personal loan has become harder and more importantly those who do manage to get a loan have to pay more back.
Despite the bank of England cutting its rates, banks are not able to pass these on to their customers due to the credit crunch and banks refusing to lend to each to other. All this means finding the best rates is not as easy as it used to be.
Due to the credit crunch many banks want to lend larger amounts to a smaller pool of borrowers but some lenders still offer attractive rates for smaller amounts of money. The important fact to point out to everyone looking for loans is that there are very competitive deals available and spending a bit of time shopping online will enable you to compare the best deals from the UK’s leading lenders at the click of a button. Especially for those with good credit, who should not have as many problems gaining a loan as those with a poor credit rating.
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Frequently Asked Questions
I would really like expert opinions, based on ...credit unions
By: Mary Jo | 29-09-2008
I would really like expert opinions, based on facts, about whether a credit union is 'better' or safer than a bank-for checking accounts, savings accounts, and bill payment services. We are thinking of closing our checking account and starting a new one at our credit union. (We do have a bit of savings in the credit union, not much though.) Thank You in advance! Mary Jo California
Worthless Stock Loans
By: lastreefsailor | 28-09-2008
If My "Several Loans are secured by Stock, (and Yes, I will loose the 20% =/- of original equity investment), and said stock is now worthless, or at the very least, trading below all reasonable levels of ever becoming profitable, why am I still paying debt service on the Loans which are now functionally in default?
And, Yes, I remember the Grandfatherly Advice about honor and personal responsibility, however, the actions of late seem to defy all such nobel guidence,
(no, I do not yet have a letter from the bank yet, seeking additional collateral, which is all well and good, since i have none left to provide).
Mortgage investment
By: Jorge sugranes | 27-09-2008
1) Is this a good time to invest in a second home?
File bankruptcy or Ride it Out with Debts
By: schancesare | 27-09-2008
I have been told by several bankers to NEVER file a bankruptcy should you be foreclosed or in collections on credit card debt. They say it all falls off your credit report within three years, whereas the bankruptcy stays on for seven years. How true is this advice?
I own washington Mutual stock, do I need to sell ...
By: jmcmath128 | 27-09-2008
I own washington Mutual stock, do I need to sell the stock @ .16 cents inorder to take a capital loss??
Mortgage poor
By: momnboo2u | 26-09-2008
Can't sell my property, walk or try to find a renter? I previously was making approx 100k now i don't even make half of that.....I can't afford to live and keep the mortgage up to date.
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