Category Archives for "Loans"

October 29, 2016

Is getting a payday loan the right move for you?

payday loans

Amid economic uncertainty, the rising cost of living and wages that aren’t keeping up with the pace, it can be difficult to make your pay stretch far enough each month. Add to that an unexpected expense, like a car or boiler breakdown, and it becomes almost impossible.

It’s on those occasions that people might need a little extra cash. People can be tempted to turn to payday loans to make ends meet. But is a payday loan right for you?

Payday loans

Payday loans are widely used in the UK and overall borrowing comes to a staggering £1.2 billion. The loans are meant to be used by people who are earning a regular wage and who can repay the loan by their next payday.

The average amount borrowed is £270, which might not seem like a lot, but given that you can expect to pay as much as £25 back on a loan of £100, you can see that they are not a cheap way to borrow. 

Payday loans usually have a much higher rate of interest than personal loans (one lender was charging 1000% interest until restrictions were put in place!). The trade-off is that you can usually get approved for a loan the same day you apply and the loan is not secured on your assets. This might make it seem like a more attractive proposition than borrowing from the bank.

Make sure you borrow from a reputable lender

It’s a good idea to use a comparison site on-line when searching for a reputable payday loans company. In the UK, the payday loans companies on comparison sites are regulated by the Financial Services Authority. This means that they must be transparent about the fees they charge and the interest rate plus the terms and conditions of each loan they offer.

Don’t be tempted to let debt spiral

Many lenders such as Loan 2 Pay day will allow you to ‘roll over’ your repayment a few times if you find that you can’t make repayments within the originally agreed time. But interest and fees will continue to mount up and you will just end up owing more. A short-term loan then becomes a noose around your neck.

Currently, there is no cap on how many times a lender will allow you to ‘roll over’ the debt which can have bad implications for your ability to repay the loan if you get into financial difficulty. This year, though, the Financial Conduct Authority introduced a cap on charges for defaulting on a payment and a cap on daily interest that could be charged.

If you miss a payment, you will be charged a maximum of £15 where previously you could be charged as much as £30.

Only borrow what you can afford

It’s tempting to think of a payday loan as an ‘easy’ option when you need quick cash. But regardless of where the loan comes from, you should only borrow what you can truly afford to pay back. Otherwise, you risk becoming dependent on payday loans and using them as a very expensive way to bridge the gap between paychecks.

A Fresh Start In Scotland: Loans For Self-Build Projects In The Highland

If you are from Scotland, or if you are thinking about permanently moving in and making your home is the Highlands area, we have great news for you! The Scottish government has established a £4 million budget for a Highland Self-Build Loans. The fund has been launched earlier this year and it offers opportunities for people to build their own homes across the region.

What Is This All About?

If it sounds too good to be true, you might be wondering what is this all about? Why would the Scottish government get that amount of money to the people of Scotland? Especially if we mentioned that the original funding has now been increased from £150,000 to £175,000! The idea is that the loans will help bring people back to the Highland area and generate growth in the self-build sector once again. In addition to that, we should also mention that the fund will probably increase economic activity in the area which will benefit everyone.

Where Can I Apply?

In case that you are interested in applying for this program and contributing to the growth of the Highlands area, you may be wondering how you can apply for this loan. Since recently all applications are being accepted by The Highlands Small Communities Housing Trust, which is also administering the scheme. So, how can this be a good thing?

How Will The Fund Benefit Scotland?

zaboxIt is expected that the fund will increase economic activity in the area as well as provide financial assistance to people who have been unable to make any progress with their self-build projects. The Housing Minister Kevin Stewart explained that the self-built loan fund is an important opportunity for everyone who is experiencing difficulties when building their own home. He also explained that the original plan had been increased and it has been found that £150,000 is still restricted for people to make and build their own homes. The pilots will be monitored over two-year lifespan, but overall the project is expected to be very successful.

More Homes Scotland

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This is not the first such project for funding homes in Scotland. In fact, this loan fund is a part of More Homes Scotland, the project which supports families across Scotland to get on the housing ladder. The government is determined to help people get their own homes and start their own lives. The government is also interested in projects that will breathe in life in the smaller rural communities where new build housing is pretty scarce at the moment. This project is just a small piece of a big puzzle, but it will definitely help people situate in Scotland and it is an important strategy for preventing outward migration from Scotland. This strategy is expected to boost employment as well as population in rural areas in Scotland, but also all across Scotland as well.