According to one recent report Brits have now resorted to using some of their most treasured possessions in order to try and secure a loan in the difficult climate, with an increasingly diverse range of things being used to secure finance according to reports. One online lender said that some of the items that consumers had used in order to secure finance included two Ivor Novello awards, Beatles memorabilia, a Henry Moore sculpture, an 18^th century bible and even a tank! People are digging all sorts of valuables out of their homes in order to get the money that they need.

The consumers who used these items in order to get a loan managed to enjoy varying levels of finance. Whilst the bible only managed to secure a loan of £200 for the borrower, the Beatles memorabilia secured £32,500, the tank £10,000, and the Henry Moore Sculpture £50,000. The two Ivor Novello music awards secured £2500.

One finance official said: “It is fascinating to see the wide variety of customers and assets coming to us at the moment. People are undoubtedly being hit by these tough economic times and are looking at different ways to raise the money to help them pay for those unexpected financial situations. Many people are realising that they have some very interesting and valuable personal items sitting in their homes or in storage.”

Brits using all sorts to secure their loans is a post from: The Thrifty Scot

Nationwide Building Society has thrown down the gauntlet by reducing its personal loan rate to just 6.2 percent, which is the lowest in the UK. With competition in the loans market still stiff, this could quickly lead to other lenders following suit and slashing their interest rates in a bid to remain competitive in the market. Although there are restrictions when it comes to eligibility, such as the amount being borrowed and the borrower’s credit history, for many people these low loan rates will prove highly beneficial.

The low rates mean that more people may consider doing things such as consolidating other debts in order to reduce their financial outgoings or borrowing money to splash out on a luxury. Some may decide to get a new car with the low rate loans and others might invest in home improvement.

One industry official said: “The £7,500 to £14,999 tier has been highly competitive since the start of the year. In January 2011 the lowest rate on a £7,500 loan was 7.4pc, today it is 6.3pc. Nationwide Building Society had been the equal market leader with Tesco Bank, Marks & Spencer Money and Sainsbury’s Finance, but this latest reduction moves it ahead of the competition.”

Graham Pilkington, Nationwide’s head of personal loans, said: “With Christmas fast approaching, this rate is great for people looking to consolidate debt, improve their home or purchase that brand new car.”

Good news for consumers over personal loans rates is a post from: The Thrifty Scot

However, in the current financial climate there is a good chance that you could be turned down for the finance due to the increased stringency being exercised by lenders. For many this could leave them facing severe problems, as it could mean that they are left with no funding options for paying for purchases over the Christmas period.

Of course, there are ways to boost your chances of success when it comes to getting finance and one of these is to check your credit file, which is one of the first things that lenders will look at when deciding whether or not to offer you credit. By checking your credit file you can see whether you are likely to get finance based on the state of your credit. You can then avoid applying unnecessarily for credit that you won’t get, which could lower your credit score even more.

Another benefit of checking your credit is that you could end up being turned down for finance for something that is not even your fault, such as mistakes and out of date information that is lowering your credit score. By checking your file you can make sure that your information is up to date an accurate.

Boost your chances of getting a loan by checking your credit is a post from: The Thrifty Scot

Failure to keep on top of repayments on these financial commitments can have a huge impact on the financial situations of consumers, making things even more difficult. This is something that can have a severe impact on your credit rating, which will then affect your financial future.

One of the things that industry experts believe could help those that have a lot of unsecured debt that they are struggling to repay is consolidation, which means wrapping all of your different debts into one larger debt. This is something that can provide convenience and ease as well as saving borrowers money on their repayments, which is what many people are looking for in the current climate.

Whilst loans are more difficult to come by than they were prior to the financial crisis, there are still competitive loan deals available for those that have a decent credit rating. It is therefore worth shopping around to find consolidation loans that come with low interest rates and offer suitable repayment terms in order to help you to reduce your repayments.

One industry expert said: “It can really pay for people to look at debt consolidation, as this makes it easier to manage debt as well as reducing monthly repayment for many people. You will have just one repayment and creditor to deal with and you could see your repayments drop through the floor.”

Saving money with consolidation is a post from: The Thrifty Scot

It has been revealed recently that a number of lenders have decided to reduce the interest rates that are being charged on personal loans and this is something that is often followed by other providers following suit and also reducing their rates in order to ensure that they remain competitive. For consumers this is great news as it means that there are increasingly better deals and a wide choice of affordable loans on offer, enabling them to more easily get value for money on their borrowing.

With the Internet making it easier for consumers to compare the loans on offer it has become far more simple for those that take the time to do their research to get a better deal on their borrowing. Nationwide and M&S Money are amongst those that have reduced their rates on personal loans, which could enable consumers to get far better value for money on their loans.

One industry expert stated: “When it comes to personal loans many people are looking for the best deal possible in the current climate. However, the only way to get the best deal is to take the time to compare different loans, especially at a time when lenders have started to reduce interest rates.”

Consumers urged to keep comparing personal loan rates is a post from: The Thrifty Scot

Over the past couple of years the volatile property market has made things very difficult for those that are interested in selling their property because their current home is no longer suitable – for example if they have outgrown the home and need a bigger family property. With buyers struggling to get mortgages, and many others unwilling to invest in property in the current climate, homeowners have found it very difficult to sell their homes in some cases.

Many have therefore opted to make improvements and changes to their existing homes in light of the fact that they cannot sell the property, which has seen the number of personal loans for home improvements increase. Another reason for more people deciding to use personal loans for home improvements is to try and increase the value of their property. The research was carried out by Sainsbury’s Loans.

An official from Sainsbury’s Loans said: “Our analysis suggests that UK homeowners are continuing to spend money on home improvements and the average spend is marginally more than last year. The decision to invest more in their homes could be due to a number of reasons, perhaps some are aiming to increase the value of their home, or maybe others have been unable to move up the property ladder so are improving their existing home until they can do so.”

Personal loans being used for home improvements is a post from: The Thrifty Scot

However, consumers are now being warned that if they take out a payday loan to bridge the gap from one payday to the next they need to ensure that they repay the money on time otherwise they could face hefty interest charges. In the past year more than two million people are said to have used payday loan facilities, with many being tempted by the speed at which they can borrow without credit checks and the ability to borrow relatively small sums at a fixed rate.

However, the idea behind these loans is that they are paid back very quickly in order for borrowers to avoid hefty fees and charges but all too often borrowers find themselves in a position where they cannot repay the loan on time, which is where the charges and fees start to kick in, bumping up the cost of the loan even further.

One industry expert said: “There is a real danger that customers could fall into a spiral of debt where they have to take out a loan each month just to make ends meets. The golden rule is not to borrow money unless it is absolutely necessary.”

Borrowers warned to repay payday loans on time is a post from: The Thrifty Scot

For the past twenty two months the base interest rate has been at a record low of 0.5 percent, which is the lowest in the history of the Bank of England, which spans over three decades. However, whilst the base rate has remained low for a long time there is now speculation that it could increase in the near future, and could rise several times over the course of this year.

Since the base interest rate goes up other loan and borrowing rates will follow, and this means that people will pay far more for a loan in the future, once interest rates have increased, than they would when the base rate is low. Industry officials are therefore advising those that are looking to take out a loan in the near future to consider doing so sooner rather than later in order to avoid higher interest rates.

Those that want to take out a loan can keep interest rates down by comparing a range of loans and lenders to find the most competitive deal. It is also possible to save more money on the cost of borrowing with the right timing, as you can minimise the amount of interest that you pay by taking the loan before the base rate rises begin, which many believe will be around April or May of this year.

Find a loan before interest rates increase is a post from: The Thrifty Scot

Figures were compiled by moneysupermarket.com based on research that was carried out, and the data highlighted the importance of consumers checking and understanding their credit rating, which is a vital factor that is looked at by lenders when deciding whether or not to offer credit facilities. This credit history relates to financial information such as paying bills on time, maintaining debt repayments, and managing debt properly.

Consumers are also warned that applying for credit too many times and getting rejected can leave black marks on their credit files, which can also cause damage that results in refusals. The more you get refused the more you are likely to be refused for credit cards and loans, so consumers may find themselves in something of a catch 22 situation.

Officials have said that consumers need to conduct thorough research in order to determine which cards they should apply for based on eligibility. However, before applying for any finance they should ensure that they check their credit report and file and that it is all in order.

Those that want to check their credit files and histories before applying for finance can get a copy of their credit report with ease online. This will show them the state of their credit and finances, and for a small fee they are able to also see what their credit score is.

A quarter of credit card and loan apps rejected in last year is a post from: The Thrifty Scot

However, customers have complained that the company is not clear about what the consumer’s chances of getting a loan actually are. Other accusations made against the company by concerned and angry consumers include refunds not being issued in a timely manner and money being taken from their accounts without authorisation.

As brokers Yes Loans takes the details of prospective customers and then uses them to shop around for the most appropriate deal. According to the company it receives around 80,000 applications a month and finds loans for around 25 percent of applicants, equating to around 20,000 people.

However, the company was also investigated last year by the Office of Fair Trading over its working practices, and was told at that time that it needed to clean up its act or it could risk losing its license to trade. The latest investigation by Newsbeat has shown that there are still concerns despite the OFT having warned the company to get things into order after its investigation last year. Investigations have shown that the broker was obliged to make it clear that it could not directly approve applicants for loans, but one former worker said that they were trained to get around this.

The ex-worker said: “We were taught how to manipulate people to think they were getting a loan. We were encouraged to really overhype it, build them up to this massive sort of climax and they’d only hear certain little buzz words. The script wouldn’t say, ‘You’ve been accepted for a loan’, but it would say ‘Congratulations! You’ve been accepted as a client of Yes Loans.’ And they would hear, ‘accepted.’”

Yes Loans accused of misleading consumers is a post from: The Thrifty Scot