Archive for August 2011

Payday Loans Explained

August 30, 2011

The global economic crisis in 2008 had a huge impact on the way in which banks lend money. The traditional channels for borrowing money suddenly became much more difficult. This opened the market up to independent loan companies, making it easier than ever to get your hands on the money you need. As these loan companies are not regulated, the representative APR can be very high, so always make sure you are aware of exactly what you are signing up to.

Payday loans fall under the bracket of this new type of borrowing. They are especially designed for those in need of some extra cash before their next paycheque. This means that you can borrow anything up to £1000 usually for a period of 2 weeks to a month. This type of loan can be extremely useful if you are a bit short on a given month. Whether it’s an unexpected expense like a car repair or dental bill, or it’s your anniversary and you need a little extra to tide you over, then a payday loan can come in very handy.

The criteria for being accepted is pretty basic; you need to be 18, be a UK citizen, have proof of employment and have a bank account. The online application forms are simple and fast to fill in. The money can even be in your account as early as an hour after you apply. Credit checks are very rare, so you can get a loan even if you have a less than perfect credit history.

As these loans are relatively small sums, the interest rates are relatively high. This does not have to be an issue however if you are sensible with your next paycheque and budget to pay the loan back. You should never borrow more money than you can afford to pay back, and as these loans are designed to be paid back after a couple of weeks, pay them back as soon as you can to avoid charges and high interest. If you are smart with your borrowing, payday loans are a great way to enable you to pay for unforeseen expenses or the odd treat.

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Rent and Energy Prices Soar

August 19, 2011

The cost of living has never been higher, especially if you live in London. With banks tightening their belts, getting approved for a mortgage without a massive deposit is getting harder and harder. As a result, those who would have bought property in the past are now forced to rent and the heightened demand has pushed up the cost of renting. It seems to be an impossible battle. The price of property is also expected to drastically increase over the next few years, increasing by up to 4%.

As if this wasn’t bad enough, the cost of energy is also skyrocketing, with 5 out of the 6 biggest energy providers hiking their prices up by up to 18%. With pay freezes and rises in the price of food, our incomes are expecting to stretch further and further. There are many independent loan companies now offering all sorts of loans as the traditional channels become harder to be approved by. On the edge of a double-dip recession, the future is looking bleak. If ever there was a time to rethink your finances and save where you can, this is it. Look out for advice articles published on our website daily, giving you tips on how you can do this.

What Caused The Riots?

August 11, 2011

Everyone seems to have an opinion on what caused the riots seen across the UK since Friday. Some think a hard hand should be taken with these ‘thugs’ who are symptomatic of the moral decay in this country, whereas others take a more liberal stance, blaming sociological infrastructures and poverty rather than the youths themselves. According to criminologists, there are a whole host of causes for the riots.

Some argue that a culture of entitlement has permeated the British psyche, and not just that of the underclass. This attitude of something for nothing has not only been seen in the outlook of the lower-class youth, but has also reared its ugly head in the politicians’ benefits scandal, where the nation saw their educated leaders effectively stealing luxury items. What is the difference between a fraudulent benefits claim of a politician for a flat-screen TV and a youth from Tottenham stealing one from a looted shop?

Consumerism has also been cited in the debate. The youths partaking in the riots are from a culture of ‘stuff’, the more you have, the better. Designer labels, the latest gadgets, the best phone are all important social symbols in all communities in the UK. Many of the youths live in poverty, surrounded by advertising for things that they cannot afford. Everywhere we go, we are surrounded by consumerism, a lifestyle that many of these youths will never be able to afford. So they have started to take it without paying for it.

Opportunism was undoubtedly part of the reason for the riots escalating as they did. As the crowds grew, more people who would not usually partake in such behaviour would have been tempted to join the mob. The more people involved, the lower the risk of culpability. The mob culture can sweep people up, especially the young, the feeling of being in a gang and the usually powerless demographic of society now being in control, at least for a short time.

There are many more factors which led to the events unfolding as they did. Undoubtedly poverty and social standing contributed in some way, and even the lack of male role models in many lower class families has been blamed for the goings on. Whatever the reason, something’s got to give.

Economic Remains Slow in Italy and Spain

August 5, 2011

 Recent figures released on the economic state of both Italy and Spain imply that economic progress remains sluggish in both countries. According to the Italian National Statistics Institute, Italy’s Gross Domestic Product increased 0.3% from April to June. This is 0.2% increase from the first quarter. The Spanish central bank has predicted a Spanish Domestic Product growth of 0.2% during the same quarter, having increased by 0.3% the previous quarter.

The Spanish central bank also called on eurozone leaders for more decisive action in regards to the debt crisis. This data from both countries indicates that economic growth is still weak, and that the worst has still not been seen in the European debt crisis. In the bank’s report, domestic measures were also advocated to make planned structural reforms sooner rather than later in order to help minimise the country’s deficit as soon as possible.

The economy in Italy also seems to have worsened since June. These signs of slow recovery are especially of concern as tax revenues are lowered in times of weak economic growth, making it more difficult for the nations to dig themselves out of their debt-ridden holes.