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Archive for the ‘credit crunch’ Category

Capping loan interest rates will hurt consumers

Sunday, August 29th, 2010

The OFT decided against capping interest rates in the payday loan industry back in June, as stated in the Guardian. This met with a lot of criticism, in particular people have argued that the high levels of interest are exploitative, and that they prey on people who are susceptible to accumulating debt. However, we feel that this criticism is unfounded and argue that this industry offers a very popular and above board service regulated by the FSA.

The OFT has said that the market works ‘reasonably well’, this means that the price of the service we offer has a reasonable reflection to the cost of the product we offer. We offer short term loans therefore you are paying for convenience and speed of service, as well as the risk we have to underwrite for not doing extensive checks into your personal details.

An unreasonable market, on the other hand, would assume that the prices are unfairly inflated above what they cost and that a few companies receive a disproportionate amount of profit. An unreasonable market would have an oligopoly or monopolistic structure (where only a few companies dominate the market), and there would be obstacles to new companies joining the market and sharing the profit. However, if you read these articles from the Guardian or BBC News the payday loan market has swelled with new competitors and new customers.

Does this sound like a market which allows companies to charge exploitative prices/interest rates? I think not. In fact how exploitative are the interest rates we offer? Well many people are put off with numbers like 2500% APR, these seem high but the fact is that they are Annualized interest rates, therefore designed to compare loans which extend over a year, we offer loans for up to 31 days therefore APR inflates our rates.

If you freeze the price mechanism that companies compete on then they will have to find another way to generate revenue to break even, this will come in the form of excessive late charges, administrative fees and other hidden costs. Who will be the people who lose out? The people who apparently are more susceptible to becoming indebted. Therefore interest rates will keep costs clear to the consumer, and by keeping a ludicrously inflated APR rate as a measure, this should deter anyone who is bad with borrowing.

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Tags: APR, Interest rates, payday loans, recession
Posted in APR, credit crunch, inflation, payday loans, recession, small print | No Comments »

Cars with the best MPGs

Monday, July 5th, 2010

Keeping up with our motoring theme today, we’ve decided to show you a few of the best cars for when you want to save some money on your fuel bills every month. These cars will keep on going and provided you keep them in fuel efficient shape (pumped up tyres, careful driving, see previous blog) you should be able to save yourself a bunch this year.

HONDA Insight, Petrol-Hybrid, 83.10mpg; save from a horse cart this is the most fuel efficient transport around today

After the Honda it all looks pretty French for the rest of the list, looks like our friends across the channel have been getting busy about saving fuel:
CITROEN C2 1.4 Diesel 68.90
CITROEN C1 1.4 Diesel M5 68.90
RENAULT Clio 1.5 Diesel M5 67.30
B CITROEN C2 1.4 SensoDrive Diesel 67.30
CITROEN C3 1.4 Diesel 67.30
RENAULT Clio 1.5 100 Diesel M5 65.80
RENAULT Clio 1.5 65 Diesel M5 65.80
CITROEN C2 1.4 Diesel M5 65.70

If you need to get some extra cash to cover all your emergency expenses until your next paycheque can arrive then its time you spoke to us here at 24/7 Moneybox. We can off you a tailored payday loan which can cover all those outstanding costs and expenses until your next paycheque can arrive. Simply take 5 minutes out of your day to fill in a simple online application form and you’ll have completed the first step to getting yourself the cash you need.

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Tags: fuel efficiency, hybrid, mpg, saving fuel
Posted in Money saving, Uncategorized, credit crunch | No Comments »

Banks cash in on steep overdraft rates and cuts in in-credit interest rates

Monday, August 17th, 2009

Despite the fact that we own 70% of RBS this hasn’t stopped them extracting more from us through some of the highest unauthorised overdraft charges around. It’s the same with most banks as findings today show that banks have cut interest rates on in-credit current accounts but at the same time increased charges for unauthorised overdrafts and increased interest rates on authorised overdrawn accounts reports Times Online. RBS, majority owned by the British taxpayer, has been named and shamed as offering the most extortionate fees following a cut in the fees by the majority of the major banks.

Bank of England findings show that the average authorised overdraft rate in July was the highest since 1995, with this 4 out of 5 current accounts pay less than 0.1% on balances in credit and half pay no interest at all. RBS takes a lot of the flak in this banking clamp down on consumer welfare as their penalty fees for unauthorised overdraft of £118 for an account overdrawn by £30 is £28 more expensive then the next most expensive provider Alliance and Leicester which charges £90.

When it comes to current accounts, Nationwide is shown to be the worst culprits, with an authorised overdraft rate increase of 11.5 percentage points to 18.9% in two years. On the other hand the better current accounts are offered from the likes of Cahoot which gives 1.1% on in-credit accounts and only charges 11.8% on authorised overdrafts.

For credit cards the overall average rate on purchases has risen in the past tow years from 16.5% to 18.1%. Again Nationwide has been criticised this time for upping its Visa from 17.9% to 19.9% in May. The best advice would be to go to Virgin Money for a card as they offer a o% balance transfer deal which is interest-free Months with 16.6% charged on new purposes.

Are you worried that you won’t have enough cash to cover your credit card bill this month? Worried that those bill payments may shoot up exponentially if they are not paid off with the extortionate interest fees that you have just read about? Well then this is where a payday loan comes in, we here at 24/7 Moneybox can offer you the chance to get instant cash to cover all your unpaid expenses this month until your next pay cheque can come in. So don’t fret about late fees or overdrawn charges from your bank apply now and don’t let banks take you for a ride.

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Tags: bank charges, credit cards, current account
Posted in credit card, credit crunch, payday loans | 1 Comment »

High-street lenders face further pressure to ease up lending

Thursday, August 13th, 2009

Further pressure has been levelled at high street banks to encourage them to lend more and get the economy back on the road to recovery, reports Times Online. The Bank of England threatened to cut the rate it pays to high street lenders. The Governor of the Bank of England Mervyn King stated that he was considering cutting the interest it pays on cash held by the banks in its reserve accounts.

The amount in these reserve accounts has increased substantially in the last year from £90.6 billion at the end of 2008 to around £157 billion in the first half of this year. King also forecasted more gloomy news, stating that the recovery would be ‘slow and protracted’, where consumers will feel the fallout for years to come.

This comes at a time when the bank stunned many by injecting £50 billion into the economy to prevent a slowdown, King states that the British economy had shrunk much quicker and deeper than his team had predicted and requires ‘robust growth’ to put it onto stable footing.

With this there has been news of rising unemployment, which had jumped to a 14-year high of 2.43 million in the last three months. King highlighted the significant role banks would have in stimulating a recovery, as growth would continue to be curbed unless banks started lending again. Lending to non-financial corporations slumped by a record £14.7 Billion between May and June this year, despite the bank’s measures to unclog the credit markets via quantitative easing.

Do you need to be leant to? Need a little quantitative easing of your own? Well then look no further than a payday loan from us here at 24/7 Moneybox. We work to tailor loan solutions to people so they can cover those urgent expenses until the next pay cheque can arrive. So don’t be worried about unpaid bills any longer get down to an application form now!

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Tags: Bank of England, Lending, mervyn king, payday loan
Posted in Government, credit crunch | No Comments »

Is a minor infraction on your credit rating preventing you getting the loan you need? Then its time you spoke to 24/7 Moneybox

Tuesday, August 11th, 2009

Despite many banks starting to generate profits again people are still finding it difficult to borrow. Lenders are taking increasingly tough lines when it comes to customers’ credit ratings, reports Times Online. Even minor slips by borrowers are seized upon as an excuse to disqualify potential borrowers, for instance even a single late payments would be enough to jeopardize an application for a loan.

Credit agencies and banks are still taking a very cautious approach, despite the Government’s best efforts to try and ease up lending once again. People who have missed payments for good reasons: illness, holidays or because they were moving homes could have severe knock-on effects to their credit rating and even current borrowing commitments where loans could have their spending limits cut.

Banks do not readily release information about how many applicants are turned down but the credit reference agencies show an insight into the problem. Equifax, a credit reference agency shows a 10% increase in requests for credit reports in the past year, which is down to people constantly having to reapply after being denied and thus re-request credit reports.

This is worrying, as a request for a credit report will leave a footprint on a customer’s credit rating, too many footprints, and you could appear desperate for a loan and be the last kind of customer banks want to offer money to. Simple things can affect a credit rating; Kate Ness from Berkshire cancelled a Vodafone contract within the 14-day cancellation period and sent it back. However, she was startled to find that Vodafone had informed a credit reference agency that she had a credit agreement in arrears, which made it difficult to take out a mortgage.

Do you have a bad credit rating or have been refused a loan in the past because of pedantic instances where you have been troubled by borrowing? Well then its time you spoke to us here at 24/7 Moneybox, we can offer you a payday loan to cover those urgent expenses despite you having a bad credit rating, we will look at your credit rating and being a fair bunch will understand that people are only human and that mistakes can be made. So don’t worry about your urgent bills or a bad credit rating any longer apply today!

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Tags: bad credit, credit ratings, poor credit
Posted in credit crunch, payday loans | 1 Comment »

Industrial backlash following pension scrappage at Barclays

Friday, July 17th, 2009

Are you affected by the closing down of a final salary pension scheme? Well Barclay’s decision to get rid of its final salary pension schemes has led to outrage from the unions associated with the bank, BBC Online reports. The scheme was originally stopped for new members, however, new proposals will stop the scheme letting existing members receive a final salary pension, which has meant that anger has reached critical mass.

Unite; the union that represents 25,000 Barclay’s workers will take a ballot for further industrial action at some stage during August, following a consultative ballot where 92% said they wanted to be balloted on industrial action.

Barclays has not been the only company to close their final salary pension schemes, many have seen the rising costs as too much to fund. 18,000 existing staff will be taken off the scheme.

There has been a real variance in Barclays’ UK Retirement Fund, which two years ago recorded a surplus of around £200m compared with a huge deficit of £2.2bn last September. A shortfall of £200.1bn exists in the UK’s 7,400 defined-benefit schemes at the end of June according to the Pension Protection Fund (PPF).

Are you struggling to pay a mortgage payment because of the dire economic situation? Well then take out one of our cash advance loan today and keep your finances on an even keel. Simply complete our application form, which shouldn’t take more than 5 minutes and your one step closer to getting the cash you need so badly. If your worried about hidden cost simply take a look at our charges page and double check you absolutely want a cash advance loan by checking out our question and answer page.

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Tags: Pension protection fund, pensions, trade unions
Posted in credit crunch, recession | No Comments »

Increasingly more people feel the emotional strain of financial problems - talk to 24/7 Moneybox and relax

Wednesday, July 15th, 2009

Are you getting depressed about money? BBC Online highlights comments from the counselling charity Relate who are arguing that many younger people are becoming increasingly depressed about their financial situation, of the 15,000 young people that they see every year about a quarter of them are depressed about money or a lack there of.

Often these money problems significantly compound other problems that young people might already face like marital breakdown and can lead to further behavioural problems. Relate findings show that money problems will strain family relationships, deteriorate behaviour academically and damage relationships with friends.

With increasing unemployment and difficult economic conditions it is expected that this problem will be exacerbated over the next few years if the recession deepens.

Relate’s Paula Hall, advises that there is a fine line between being realistic and being hopeful. Depressed realists have got to understand that ‘we aren’t going to be in a recession for ever and we are still in a fairly wealthy country’.

Are cash flow problems getting you down? Well then relax and get rid of your cash problems today with one of our tailored payday loans. Simply fill in one of our simple application forms and your one step closer to getting instant cash. Read some of our question and answers to find out more.

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Tags: depression, recession, Unemployment
Posted in Unemployment, credit crunch, recession | No Comments »

Governmental measures to kick-start the mortgage sector show fundamental flaws

Tuesday, July 14th, 2009

How is your mortgage looking? The government is struggling to get the mortgage sector into swing as this latest attempt to get Britain out of the financial rut is being condemned as showing significant weaknesses, reports BBC Online. The £50bn asset-backed guarantee scheme (ABS) has been criticised as ‘doomed to failure’ according to the Communities and Local Government (CLG) Committee. Two reports from separate institutions have highlighted that UK property prices will continue to struggle to make a recovery until mortgages were more readily available.

Figures do show that mortgage lending has picked up, but the Council of Mortgage Lenders (CML) has highlighted it is still 28% lower than two years ago.

The government scheme, which was introduced in this year’s budget, provides a guarantee on lenders’ mortgage-backed securities. This allows lenders to sell on mortgages to lenders raising new money to lend to consumers.

However, MPs have highlighted that restrictions on the partaking institutions and the narrow band of loans that are actually covered has meant the scheme has limited effectiveness.

Dr Phyllis Starkey who chairs the CLG said that the ‘CLG and senior officials must maintain pressure on the Treasury to bring in new measures to get the mortgage market moving. Further shortcomings have highlighted that not enough emphasis is being placed on the rental sector an important part of the sector.

Are you going to struggle with this month’s rent or mortgage payment? Well then ease your tension with one of our simple payday loans. These are tailored to solve your specific financial problems, simply take 5 minutes out to fill in an application form now and relax as your cash flow problems are solved today.

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Tags: council of mortgage lenders, house prices, mortgages
Posted in Government, credit crunch, recession | No Comments »

Nationwide offers homeowners 125% of future property

Friday, July 10th, 2009

Stuck in negative equity? BBC Online has investigated a new mortgage proposed by the building society Nationwide which will give borrowers the chance to get money up to the value of 125% of the property they intend to buy with it. The mortgage would be only available to those existing customers in negative equity, where the value of the house a person owns is less than the amount they owe on their mortgage.

The Financial Services Authority has made suggestions at limiting borrowing to only 100% of the home. As it stands any new borrower would only be able to take out 85% of the value of the home, and existing customers would be able to take out 95% at various rates of interest.

However, despite the financial product first being offered in June it has not been actively marketed and none of Nationwide’s customers have taken it.

Loans above 100% have received a lot of criticism at the height of the housing boom, which effectively placed borrowers in imminent negative equity, in particular the notable culprits was the now nationalised Northern Rock. On one side Ray Boulger of John Charcol Mortgage Broking said the deal to be a ‘consumer friendly move’. However, Critics like Jonathan Davis argue that it is exposing itself to potential further losses.

In a financial turmoil? Is this the month when you may slip into the red? Then 24/7 Moneybox is here to help. Simply take out one of our payday loans and you will have instant cash to deal with the problems facing you, for instance imminent bills rent or repair work needing to be done. The application process is easy, first of all fill out our simply 5 minute online application form, answer a few questions when we phone you up at a convenient time and then within an hour of validation the money will be yours!

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Tags: FSA, housing, mortgages
Posted in credit crunch, recession | No Comments »

House prices up or down?

Wednesday, July 8th, 2009

The latest part of the roller coaster that is house prices comes from Halifax. Their findings show a sharp fall in house prices in June, which has partly reversed the gradual increase of house prices we had seen in the last couple of months, reports BBC News Online. The news contrasts greatly to findings showing a large 2.6% increase in prices back in May.

The findings come from Halifax’s property survey, some good news highlighted the slowing annual decrease in prices from 16.3% to 15% last month, they went on to proclaim that there was evidence the property market is stabilising after sharp slumps since mid 2007.

Martin Ellis Halifax’s chief lender states that prices have ‘fallen by only 1.9% in the past three months’ the lowest quarterly decline, however, a long way from those green shoots predicted here in an earlier blog.

So why have these figures told a different story to that of Nationwide’s figures which sparked the earlier blog about a spring bounce or green shoots? Halifax, whose figures are based on a sample of its own lending said prices had only risen once in the last 4 months and are still 2% lower than February. Nationwide however, had its findings showing that prices had risen in three of the last four months.
Overall there is hope as undoubtedly house prices are picking up due to low levels of interest rates. HM Revenue and Customs has shown that completed sales in May were at their highest since October 2008.

Are you struggling to keep up with rent or the utility bills? Worried that this may be the month were you might hit the rocks? Relax with 24/7 Moneybox, simply take 5 minutes to fill in our application form, answer a few questions when we call you and then simply wait for our payday loan putting instant cash into your bank account. Solve all your short term money problems quickly and easily with 24/7 Moneybox, apply today!

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