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Archive for the ‘recession’ 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 »

Struggling with credit problems? 24-7 Moneybox could be the solution

Wednesday, June 2nd, 2010

Often financial difficulties can be a psychological problem as much as a physical one, people can feel that they are constantly tied up and constrained from acting like themselves and enjoying life. This article will highlight some ways to relax and get your head straight so you can get yourself financially free.

First of all start small and stay focused, try and reach out to friends and build stable relationships with people, your friends are very important and can get you back to feeling normal again.

Second: take care of yourself, eat well, exercise and try to relax. Exercise and healthy eating will help release endorphins and will make you more focussed and determined.

Third: think positively, and stop being hard on yourself. In particular build up relationships with positive people who will help build up your self-confidence and self-esteem.

These tips will help reduce the burden of financial depression, while you are doing this go ahead and actually reduce financial difficulty by talking to us here at 24/7 Moneybox. Our payday loans will allow you to cover the costs and problems you may be facing in the run up to your next paycheque.

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Tags: cash advance loan, mobile loans, Relaxing, saving money
Posted in Money saving, new year’s resolutions, payday loans, recession | No Comments »

The Changing Face of Loans

Tuesday, March 2nd, 2010

Getting a loan used to be a complicated affair, and unless you fulfilled the many criteria that a bank would use to assess you they remained an unobtainable luxury. Even if you were accepted there were usually mountains of paperwork to trawl through until you eventually got your money. Recently, however, this has all changed, and with the advent of payday loans, loans have become a convenient financial solution.

Traditionally, a bank would assess you for a loan in terms of your credit rating, which means that if you had a history of bad credit - be it arrears, county court judgements (CCJs), default or bankruptcy - then you would be refused a loan. Some would argue that this policy of refusal would shut out the very customers who could best use a loan. Plus, even if you’re not refused a loan, loans issued by banks often take up to a week to become available. This is precisely why the convenience of quick cash loans attracts anyone looking for fast cash.

As we enter more uncertain times then it is likely that the criteria for banks loans will only become stricter, which means that those who need loans most will find it difficult to get access to money. Luckily, however, there is an alternative – cash loans.

Pay day loans from 24/7 moneybox have the advantage of being a guaranteed loan, which means that we won’t discriminate against those who do not have a perfect credit rating. Whilst there are some sensible criteria in place to ensure repayment of a loan, cash loans represent a truly egalitarian financial solution, and are a fantastic way to get hold of some money when you need it the most.

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Tags: cash loans, pay day loans, payday loans, quick cash loans
Posted in Unemployment, inflation, payday loans, recession | No Comments »

Off-peak and advance fares could see sharp rises

Wednesday, August 19th, 2009

Following the Government confirming that regulated fares like season tickets for consumers would fall last January, travel watchdogs have warned that train operators will try and regain their loses through other measures, reports Times Online. These other measures to recoup their revenue, so called ‘stealth charges’, include increasing the cost of parking and advanced fares.

These warnings have shown substance following the First Great Western train company announcing rises of up to 20% on some off-peak services. Regulators do not monitor these off-peak services so there are no limits as to how high fares can be raised.

The fare reductions for regulated fares have been hailed as the first ‘in a generation’, which will encourage more to use train travel and avoid the other environmentally damaging means of transport like cars. Some companies have been allowed to increase prices, West Yorkshire PTE will increase fares to enable investment in additional trains. Boris Johnson, Mayor of London, has been put under pressure from request for more funding to British transport to cover the ‘black hole’ of investment there, this will make it difficult for Johnson to freeze fares for Underground and bus networks which he controls. Boris promised in December that a ‘reduction (in RPI) will, of course, be fully reflected in the fare package’ it’s a proposal that will come under a lot of strain.

Are you finding that expenses are getting too much for you each month? Are bills going unpaid and threaten to increase through penalty charges and late fees? Well then this sounds like you need a little injection of cash to deal with those steep payments you are facing at the moment. Here at 24/7 Moneybox we can offer you the chance to cover your costs with one of our payday loans. We can offer you a competitive loan, which provides instant cash and next to no hassle from paperwork or faxing. So apply today!

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Tags: environmental, inflation, payday loans, train fares
Posted in inflation, recession | No Comments »

Car insurance inflation at it’s highest since 2000

Thursday, July 30th, 2009

Not more price rises! Yes, unfortunately further price rises are expected this year as car insurance companies argue that the high costs that they are facing have to be transferred to motorists, reports BBC Online. Insurance companies are facing higher costs from greater personal injury claims, such as whiplash, and more cases of fraud, which has forced them to increase premiums claims AA Insurance.

Simon Douglas the director of AA Insurance stated that the ‘underlying premiums are rising more steeply than they have since 2000 because of rising costs’, he doesn’t predict that this will ease, already last years prediction made by him has come into fruition as evidence shows that premiums have increased by 10%.

He concludes that companies in the industry needed to turn around underwriting losses and pay the costs of better detection of fraud and help clamp down on uninsured drivers, i.e. the main factors behind the greater costs.

They need to start soon as premiums are rising at a faster rate than at any time since the start of the decade. The average annual comprehensive car insurance policy rose to £778 between April and June, a rise of 3.5% compared to the previous three months, the year on year increase reached 11.3% in June.

Others hit include those taking out third party insurance policies, namely the young drivers, who already pay astronomical premiums due to the high-risk nature of these policies.

Are you struggling with rising costs reinsuring your car? It’s an expense that has to be paid for, as you can’t survive without it. Therefore to ensure that your car can stay road worthy its worth taking out a payday loan from us here at 24/7 Moneybox. Our tailored loan solutions are designed to help those that cannot get the money together to keep their basic necessities going until the next paycheque, think of us as keeping your finances on an even keel. If you need to get your finances back in black apply for a no fax payday loan today.

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Tags: car insurance, fraud, inflation, premiums
Posted in inflation, recession | No Comments »

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 »

Brits find pensions under further threat after prolonged Government gaff

Thursday, July 16th, 2009

Have you been overpaid in the government’s latest gaff? According to the National Audit Office (NAO) and BBC Online £90m extra has been paid to public sector pensions. Retired soldiers, teachers, doctors and nurses have all be affected by the error, and 31,000 of whom will see their income drop as a result next year. However, the number affected is expected to rise.

The overpayments have been sourced back to 1978 when there was a mix up with the indexation of certain pensions. Some schemes did not have the required information recorded which meant that they did not apply the correct annual cost of living.

The real worrying issue is that the problem was highlighted years ago but the agencies who were involved refused to take responsibility for the situation. NAO pointed fingers at HM Revenue and Customs, the five pension schemes, and the Pension, Disability and Carers Service for passing the buck on.

The NAO has urged for these groups to work closer together as it feared there were continual risk of further payment errors. In particular the NAO has suggested it wanted to have a review to see if the process can be simplified.

Are you struggling to pay this month’s bills or mortgage payments? Are you expecting a pay cheque but it isn’t coming fast enough for you to cover this month’s expenses? Then 24/7 Moneybox is here to help lend a helping hand. Simply read are charges page and you’ll know how much you need to borrow and how much this will cost you to get one of our payday cash loans. So relax and apply today.

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Tags: Government, National Audit Office, pensions, Public Sector
Posted in Government, payday loans, 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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