Financial News - Our view on the financial news

How to Use the UK Pension Tracing Service to Find Old Pensions

Over your years at work you could potentially contribute to a few different pensions. You may be part of various company schemes and you might also open up personal pensions along the way. It is, however, easy to lose track of your benefits, to lose contact details if schemes change or to allow providers to lose track of you.

This could see you miss out on possible income boosts when you retire. If you think you need to find an old plan, it may be worth using the Pension Tracing Service. This can help you track down previous schemes and get back in touch with plan administrators. If you’re lucky, you could improve your financial prospects in retirement.

What is the Pension Tracing Service?

This is a free system operated by the UK’s Pension Service which is part of the Department for Work and Pensions. It cannot hook you up with old schemes or tell you if you are entitled to payments but it may be able to give you the up to date contact information you need (if it is available) to get back in touch with previous providers yourself. At the moment its database contains contact details for over 200,000 plans and covers both company and personal options. You can apply on your own behalf or on behalf of someone else. [Read more…]

Inside the Scam Costing Consumers Millions…From a Bad Text Message

By Kurt

Fraud is rampant, and with the holiday season slowly coming into full swing, it’s only a matter of time before the problem gets worse. The latest scam that you should be aware of are thieves using fraud text messages to get sensitive information. The fraudsters have it set up to make savers believe the messages are coming from the bank, as the matter involves suspicious activity on their current account.

So when they call, they think that they’re speaking directly to an authentic employee of the bank. Unfortunately, this isn’t the case at all. They’re talking to the thief that will have their information, and be able to take all of their money.

It’s a crime that’s been dubbed “vishing”, and it works because the thieves use tech that makes each text appear in messages that are already from the bank. So there’s a high level of trust here, and that’s a bad thing.

But it’s not enough to tell you about the scam — we want to keep you from becoming a victim of it. You need to understand that if you have any problem with the bank, they’re not going to send you a text message about it. If you do happen to get some kind of correspondence from your bank, it’s never a bad idea to go in person to tend to your account. If you’re traveling and don’t have a bank branch in the area, you can look up the corporate number of the bank and call them directly. Make sure that you verify that it is actually the bank, rather than a number that sounds like it. The bank will not ask you to give them sensitive information without reason, and you can simply ask them upfront if they’re sending text messages on the issue. [Read more…]

Applying for a loan with bad credit rating

By Kurt

Even though you may well have a bad credit rating this doesn’t mean that it’s impossible to get yourself a loan. There are dissimilarities in lending money when your credit rating isn’t good, the main alteration is that it will cost you more. This is due to the fact you are looked upon as a higher risk to the lenders than someone with a good credit rating. You end up paying more as the APR upon the loan is likely to be higher than it would be if you had a good credit rating.

Despite these rates being higher they are still vastly lower than pay day loan options, also they give you the opportunity if you wish to repay the loan over a few years rather than the high APR rates and short term payment dates that the pay day loan companies offer. There is both the option of a secured and unsecured loan for someone who has a bad credit rating of CCJ’s.

A secured loan is a loan that requires you to be a homeowner and the loan is then secured against your property. This provides the lender with the safety of the value of your property, this is a backup in case you are unsuccessful in maintaining the repayments, they are then in the position to repossess your property.

The unsecured option means that you aren’t required to be a homeowner but that you may need a guarantor to ensure payment is met, they must be able to step in and pay if you fail to keep up with the repayments that are required. It will then become their responsibility as well as yours to repay the loan amount.

In the majority of cases you will need to be in full time employment and be earning a certain amount before the poor credit lenders will consider you for a loan. Make sure you only borrow what you require. The lower the amount and the shorter the term the less you end up paying back. Shop around for the most competitive rates and ensure that you will be in a financial position that allows you to meet the repayments throughout the loan period. Take your time to go through all of the terms and conditions make sure that these suit you. Furthermore ensure that you are aware of what will happen if you are unable to keep up with the loan repayments.

Ceri Harris is an underwriter at Willows Finance LTD a secured loans company based in Wales.

Are exclusive personal loans from banks the real deal?

By Kurt

These days we all have a bit of a trust issue when it comes to banks. As bank managers and investors take millions of pounds in bonuses while the economy falls to its knees, the public perception of banks is less than flattering. And unfortunately, the recent news that banks have been conning current account customers into taking out expensive bad credit loans will not do anything to help the banks’ public image.

It has recently been revealed that when customers take out current accounts with a specific bank, they’re often assured that they have exclusive access to bargain deals on personal loans. As a result, many customers snap up the opportunity to kill two birds with one stone, and get their hands on a “bargain” personal loan at the same time as opening a current account.

However, the majority of these so-called bargain loans actually have much higher interest rates than the other personal loans that are available on the market. And, as the contracts are often full of jargon and small print, many people fail to spot that they’ve been duped until it’s too late.

The main reason for these personal loans being taken out, as stated above, is convenience. For many people, sorting out finances is a stressful and unpleasant experience, so if their bank offers an opportunity to set up a loan quickly and effectively, they’ll make the most of it.

What’s more, many people assume that taking out a loan with their current bank will mean they get some kind of special deal available exclusively to existing customers, and as a result they don’t bother to check the interest and other specifications of the loan.

Recently, personal loans have been the major focus of lots of banks and lenders, and the interest rate for personal loans of between £7,500 and £15,000, or even up to £25,000, is at its lowest point in almost seven years. This means that even a little bit of research and shopping around can leave you quids in as opposed to taking out a personal loan with your current account. [Read more…]

Discover Government Debt Help Options

By Kurt

When you find yourself knee-deep in debt, perhaps the first solution that you would come up with is filing for bankruptcy. Although this is a perfectly viable way out of your financial woes, you need to exhaust all the options that you have first before even considering filing for bankruptcy. This will stay on your credit record for up to ten years and will greatly affect your purchasing power as a consumer.

The good news is that there are other options that you can look at prior to filing for bankruptcy. One of these is applying for the Individual Voluntary Agreement which is a form of government debt help provided for residents of the United Kingdom.

Government Debt Help: What Is An IVA?

No matter which country it is that you live in, its economic status does not just depend on the prosperity of the business owners, but on the wealth of the private industry as well. If you have a bunch of citizens who are average earners and are struggling to pay off their debts, this can negatively impact the economy. Although there is no specific assistance that the government provides for individuals who have debts, the IVA is the closest thing to government debt help as you can get in the UK.

It was introduced in the UK in 1986 as a program which was only supposed to help those who are considering filing for bankruptcy. It was also meant to assist small business owners who incurred a certain amount of debt so that they can look at another alternative before even considering filing for bankruptcy. With the IVA, up to 75% of a borrower’s debt can be written off. The condition is that you need to have at least three creditors and fulfil other stated conditions as well. Depending on how much you owe, your debts can be paid off within a period of five years.

The nearest thing to an IVA in the US is debt settlement, where it is also possible to write off a portion of your debts.

How the IVA can Help You Out

If you are still wondering whether you should take advantage of IVA as a form of government debt help, take a look at the following list of its benefits:

IVAs can greatly reduce the amount of monthly payments that you need to make. Since the IVA is designed to help those who are considering filing for bankruptcy in the first place, you are given the privilege or option of paying back only what you can afford.

Once your IVA government debt help application is approved, you can become debt free within a period of 60 months. The agreement will also stop creditors from harassing you with collections calls, so you can get back on track with your finances. [Read more…]

Payday Loans Online Hold The Key to Stepping Out of a Sticky Situation

By Kurt

A bad situation shouldn’t take over your life. While there are some that say that you should never look for assistant, loans, or other helpful resources, we don’t believe that around here. We believe that sometimes life just slips away from us, and we have to work hard to get things back under control. That’s just the way it is sometimes. Instead of getting mad, why not get things taken care of the right way? Why not make sure that you have all of the resources in the world to get things done?

You’re going to be able to break out of your situation and move on with your life. That’s really the top reason to look into short term loans direct lenders for help. These loans are small enough not to bankrupt you. Even though there’s quite a bit of interest, they’re much faster than a bank loan. You have to calculate in the loan of inaction if you’re going to compare the high interest of payday loans online against the bank loan being delayed. The loan takes a long time, and bankers aren’t known for really being in your corner, now are they? You would actually do a lot better looking at loans that are going to be small enough to let you get everything you need to take care of handled appropriately. Trying to hope that everything will work out without taking action is like going outside without an umbrella during a downpour and magically not getting wet. It just doesn’t happen.

You can apply online quickly, and with full confidence. This is one of the most regulated industries in the world, and that means that you’re not going to get ripped off, or have your financial details stolen from you. Industry standard encryption is everywhere, and there’s no reason to think that your security would be compromised.

Make sure that you check out bad credit payday loans lenders as soon as possible. They’re fast, convenient, and they give you the real power you need to get out of a sticky situation. When it really comes time to take action, can you hit the ground running? With payday loans, you’ll be able to answer that easily enough: yes, you can!

Car Loan vs. Outright Cash – Which Choice is Really Right for You

By Kurt

Buying a new car is an exciting experience, because you have plenty of different choices on the car lot. But before you get too excited by the shiny paint jobs, you need to think about how you’re going to pay for the car itself. Do you want to finance the car, or do you want to pay for all of it in cash.

There are some reasons to pursue each one, and it’s really important that you start looking at your choices very carefully. One of the first things that you will want to do is make sure that you check your credit report. You can’t decide which way to go if you don’t know what tools you have on your side of things. You want to look, for example, at how high your credit score really is. Lenders will finance at all sorts of different ranges, but you will get the best interest rate by having a good credit score.

From here, you also want to look at how much money you could bring to the table in a deal. Some people feel that if they’re going to finance the car, they shouldn’t have to pay anything up front. But this is a great way to negotiate down to a better rate. When the financing company sees that you’re bringing money into the deal yourself, they’re a lot more likely to make room for you at the table. On the other hand, if you don’t come with much of a down payment, they might see this as a sign that you could default in the future.

Having the upfront money to go to the car dealership and pay for the vehicle in cash is good. But if you could get a 0% car interest loan with good credit, then that’s even better. It’s going to be an introductory rate and then switch over to a modest interest rate later in the loan, but you could still save thousands of pounds with an offer like this.

If you’re in a bad place and you absolutely need a vehicle, then financing can be your only option. If you can, bring a trade in vehicle with you, along with a decent down payment. It can make the difference when you’re really trying to get back on your feet. The financing company reports your payments to the credit bureaus, so this is also a way to improve your credit. But take caution, because late payments get reported as well. And if you fall behind to the point where you have to get the car repossessed, this will be a big negative mark on your credit report that’s hard to take off in the long run.

Keep in mind that if you finance a vehicle, you will be required to carry full car insurance at all times. With a car that you buy outright, it’s up to you to figure out what insurance product is best. If you only wish to get liability coverage, that’s your decision. But with a car that’s being financed, you basically have to protect the lender’s investment, as well as covering the other driver in the event of an accident that you’re at fault for. Make sure you also set aside enough cash to handle your license plate fees and taxes.

It’s way better to make sure that you prepare yourself before you just walk onto the car lot. This is why the choice between a car loan and a cash deal is so difficult. Believe us; they will come out with some hot offers to get your attention. The dealership will make a lot more money upfront from your purchase than they will on the cash deal. But at the end of the day, you have to do what’s going to be in your best interest first and go from there.

What if My Lender Goes Out of Business?

By Kurt

It can be a worry with a lot of companies and even banks going out of business, that this might happen to your lender. It may not be too much of a problem though.

Although it seems that banks go out of business a lot, they actually do not. Some banks are supported by the Bank of England and will never go out of business, so if want to be completely sure then use these. They are HSBC, Barclays and Nat West. However, they do not always have the best mortgage deals, so it can be a good idea to be more flexible.

If your lender does go out of business it will not be too complicated for you. What normally happens is that parts of the business will be sold off and it is likely that you will end up being passed to a different bank. If you had savings in the financial institution, then it could mean that you might lose some of them. However, when you have borrowed money, this will not happen. Therefore you will just have to start paying the new owner instead of the old one.

After a while you may find that they change the terms on your mortgage. They may change the fees or the interest rate. You may then decide to move elsewhere, if you have not already decided to do so. Remortgaging is usually quite simple, assuming that you have a good credit record and always make your mortgage payments. Just have a look and see whether there are some better deal on the market and move to a new lender. It normally just requires a form to be filled in and maybe a few telephone calls.

So it is not really something you should worry about. If you have a reason to be concerned about your lender, then you should be able to move your mortgage then and there unless you are tied in to a fixed rate deal. So just make sure you do not get yourself tied in, if you have this sort of concern. There are many types of mortgages and most do not tie you in. Even the ones that do tie you in, sometimes have an option of being able to leave if you pay a sum of money and so you should not worry too much. Just make sure you know the terms of your mortgage before you sign up and you should have no need to worry.

When Is It Time to Refinance Your Home?

By Kurt

You may look to refinance your home when interest rates drop to gain access to extra cash from your home equity to reduce debt. In a market with falling home prices most people are looking to reduce their monthly payments or increase the rate at which they can pay off their mortgage.

Refinancing can be a positive strategy move based on your individual situation but it might be less expensive to stay with your current mortgage.

Here are some things to think about if you are contemplating refinancing:

• Interest Rate. Use an online mortgage calculator to determine what interest rate you would need (be sure to account for all the costs of refinancing) to strike a beneficial arrangement.

• Staying or Moving? If you are planning on staying in your current home for a short period of time it may not make sense to refinance. It will usually take some time to reach a break-even point with your existing mortgage.

• Savings. It is important to ensure that you have adequate savings for emergency funds and retirement so refinancing to pay off your mortgage quicker may restrict how much you can put away. Take into consideration the benefits of saving versus paying off your mortgage in a shorter time period.

• Debt. Consider what other debts you have before deciding when to refinance your home. Paying down any existing high-interest debt will save you more in interest than reducing your interest rate on your mortgage.

• Credit Score. Your credit score plays a key part in qualifying to refinance your mortgage. Be sure that you have a high enough credit score prior to starting the process to refinance.

In certain situations, refinancing can provide you with the right solution; however it is not always the prudent step in all cases. Be sure to evaluate your circumstances and understand the consequences and impacts of refinancing. A little research ahead of time can help you make the right decision on when to refinance your home.

Paying Back Loans in the Recession

By Kurt

When times are hard, like they are for many in this recession, it can be difficult to imagine how you could even consider paying back your loans and getting out of debt. However, there might be things that you can do even if you feel that you have no spare money.

– Stop getting in to more debt – it is very important to start off by not building up even more debts. Consider the ways that you get in to debt, whether they are credit cards, overdrafts, loans of whatever. You need to stop using these methods of paying for things so that you do not continue to get in to debt. It is no good paying off your overdraft if you build up debt on your credit card and so you need to firstly manage just using your income and nothing more.

– Assess your debts – this can be the scariest part of the process as you have to find out exactly how many debts you have. This includes everything from loans to mortgages, money you owe friends to credit cards. Look it all up and write it all down. You may find that it is not as bad as you imagined or that it is worse. However, doing it, is the first step in being able to pay back what you owe and have that freedom that you will have dreamt off.

– Spend less money – telling someone to spend less money could seem silly. Many people feel that there is not a way that they can reduce the amount of money that they are spending. However, it is worth considering whether you really are spending the minimum amount. Consider every purchase that you make and whether it is something that you really need at the moment. You may be able to delay that purchase until you are clear of debt or you may not really need it at all.

– Repay the dearest loan – it can be best to take a look at the loans that you have and pay back the one that is costing you the most money, first. If you pay any spare money that you have in to that loan, then the costs of it will go down. It will become easier and easier to pay more back because you will be paying out less in the cost of it and eventually you will pay it all back and be able to work on the next one.

– Repay the smallest loan – some people find that they feel more motivated when they pay back a loan in full and therefore target the smallest loan first. This is a more expensive way to pay back money, but it can be well worth it, if you feel that it will give you the motivation that you need.

– Reward Yourself – it is important to make sure that you reward yourself every so often. Being as frugal as you can and paying back loans, can be very rewarding for some people. However, if you are used to spending lots of money and never thinking about how much you are spending, you may find it very difficult to get used to spending less. Therefore it can be worth treating yourself every so often to something that you have cut back on but really miss. This might be a coffee out, a take-away or a new piece of clothing. However, do keep it as a treat as you will appreciate it more and you will not overspend and get out of your new habits of paying off debt.