Skip to main content

Posts

Showing posts with the label loans

Loan Sharks and Pay Day Lenders

It is estimated that 165,000 households in Britain use illegal money lenders and that many thousands are in serious debt to them. The borrowers are people with a bad credit history or who cannot manage their finances or whose income is very low. The current recession is blamed for the squeeze on people’s incomes and state benefits are rarely enough to fill the gap. In extreme cases, parents resort to stealing food.

The poor are fertile territory for doorstep lenders. If you are desperate and the kids haven’t eaten for three days, a person coming to the door and offering a loan seems like the Messiah. In fact, they are a pack of wolves.

Demands for action against loan sharks led to the establishment of official Illegal Money Lending Teams which operate across the country. They claim to have secured 222 prosecutions, assisted 19,000 victims and secured prison sentences on perpetrators totalling 150 years.

Debra Wilson wanted to buy a computer for her daughter as a Christmas present. Th…

Edukashun

Fewer pupils from deprived backgrounds are going to university in Scotland despite a raft of initiatives to widen participation, according to a new report.

In 2006-07, just 14% of school-leavers from secondaries in the lowest participation areas for higher education went to university compared to 19% in 2002-03. Over the same period, the proportion of pupils from the schools which enjoy the highest rates of progression to higher education has fallen only slightly, from 31% to 29%.

One of the aspirations of the government expansion of higher education in the mid-1980s, and then again in 1992, was to allow wider participation, but the main beneficiaries have been the "middle" classes.

John McClelland, chairman of the Scottish Funding Council said more should be done to address inequalities of opportunity.

A Scottish Government spokesman said: "It is unacceptable that an educational gap between advantaged and disadvantaged people opens up early in a child's life and contin…

Debt Fears

One in five Scots home owners struggle to meet their mortgage payments, a survey suggests.

Almost one million people find it difficult to cover their monthly repayments and other debts .

Researchers also found 18% reported having to rely on credit cards or loans to pay for daily essentials like food.

Head of personal insolvency for the accountancy firm KPMG in Scotland, Andrew Kennedy, said: "Those people who have been robbing Peter to pay Paul, transferring balances from card to card, remortgaging and taking equity out of their property to pay off spiralling debt are fast running out of options."

KPMG said the global credit crunch meant payment troubles could worsen over the coming months ,people who previously had access to competitive mortgage deals, despite being late with a couple of payments, are going to find it very difficult to find a deal , and that the credit crunch is already seeing credit card companies reducing credit limits and increasing their rejection rates for…

Bankrupt Solutions

Scotland's poorest and most vulnerable debtors were yesterday offered their cheapest escape from creditors.
The Scottish Government said it would allow so-called "Ninas" - people with no income and no assets - to declare themselves bankrupt for a fee of just £100.
The new "cheapie" bankruptcy will be available only to people who earn less than £220 a week, the equivalent of 40 hours on the minimum wage, and have less than £1000 in assets.

A capital(ist) solution to the problem of poverty !!

Meanwhile the Independent reports the accountancy firm Grant Thornton predicts the total number of personal insolvencies nationally will jump to at least 120,000 this year, almost triple the equivalent figure in 2004. As many as one third of bankruptcies in the first three months of the year will be caused by "excessive Christmas spending".

Steady increases in the cost of living are expected to tighten the screw. In only 12 months, the cost of filling up a vehicle with …

The Credit Crunch

Further to the previous post this news item perhaps explains the reason why many workers find it necessary to work long hours .

Around one in three mortgage customers face higher repayment rates and difficulty in borrowing more on their homes in the light of the recent credit crunch.Lenders have become increasingly cautious following the problems in the credit markets, and as a result many home- owners will be offered less favourable terms if they want to remortgage their homes. More people than ever are set to fall into the sub-prime category as a result of missed debt repayments, meaning that borrowing will now be put out of reach for many.
Mintel market analysts , estimates that around 9% of the UK's 16.5 million mortgage holders will now be considered sub-prime by lenders. It also forecasts that a further 24% could also be considered a high risk because of their personal circumstances, such as being self-employed or not having a regular income, or because they had moved freque…

Personal debt increases

Over 8 million British adults are in serious debt and over 2 million are struggling with repayments. 18% of adults in Britain are in £10,000 or more of unsecured debt such as credit cards, overdrafts, loans and store cards .The number of bankruptcies rose by 10 per cent in the first quarter of 2007 compared with the same period in 2006. Around 420,000 people were prosecuted for defaulting on loan repayments in the first six months of this year - up eight per cent on 2006. Scotland was revealed as the area with the highest proportion of indebted residents .

The Bank of England has raised the cost of borrowing five times in the past year to 5.75 percent -- the highest level in six years. Analysts expect another rise to 6 percent by the year end . High levels of unsecured debt are clearly linked to the rise in interest rates over the last 12 months . The record rise in house prices -- especially in London and the south-east -- has led to a growing discrepancy between mortgage payments and…