Monthly Archives: July 2011

PPI

Payment Protection Insurance (PPI) is popularly known as PPI is a sort of insurance which normally will cover the payoffs on various forms of finances for a specified time period even if you are unable to repay the loan due to accident, sickness, redundancy or sometimes for death. Payment Protection Insurance can be provided for the following kinds of agreements such as personal loans, motor finance, store cards, credit cards, amongst others.

PPI has come to be an extremely provocative due to the supposed miss-selling of the plans which has happened. As stated by which? It is even suspected that, about 50% of PPI policies might have been miss-sold. In some cases the insurer / lender had failed to deliver details on the different benefits of the PPI policies, so the customer may have frequently taken out the shield without understanding really what it existed for!

Some other instances of how the PPI policies have been miss-sold comprise, independent people that cannot claim for laying-off, also where prevailing medical conditions were unrecognized which in turn to be invalidated the insurance.

 

The Cost of PPI

The cost for obtaining an insurance regarding a credit can vary for number of factors. Normally the factors that affect the charge are the period of the loan, the type of funding you are receiving, the sum you are going to borrow, and of course on the company that has vended you the policy. According to rule, Payment Protection Insurance may be deliberated to be a costly form of cover which can make a substantial variance to your monthly recompenses on your loan and the total amount you need to pay.

 

How many claims for PPI are successful?

According to latest statistics from the Office of Fair Trading, in fact about one in every five PPI claims on policies is successful.

In recent times as reported by the BBC, the FSA was not happy with the promptness with which Financial Services Companies reacted to the so-called miss-selling of PPI. In the year 2008 the Financial Ombudsman Service received 25,000 complaints on PPI.

 

A lender told me that, the PPI is a requirement to get the finance required I want. Is it true?

At first, there is actually no compulsion to accompany this insurance with a specific company. No matter from which company you are taking out the financial aid.

If you are going to take PPI policy, you should certainly look for the better one with featuring a cheaper quotation. Very often you may find the stand alone products considerably cheaper than that is sold as packaged by the lender. Again, it is not compulsory to have a PPI with your loan, so the lender cannot compel you to have PPI for getting the finance. Always take care about what the lender is saying and what is actually stated in the agreement.

 

What to do if a PPI policy is found as Miss-Sold?

Actually, this is dependent on some factors like the conditions under which you obtained the cover, the perceptive for why you mean that it could have been miss-sold to you, also the period when the policy was taken out. If you face such complexity, contact with your provider with necessary documents.

Credit Cards

Credit Cards

 Breaking free from Credit card debt

A credit card is generally a small plastic card which is used as system of payment. A credit card holder can purchase goods and services on the basis of his promise to payment for those. The issuer of the credit card opens a revolving account to grant credits to the user.

 

A credit card differs from the charge cards which require paying off the entire amount each month but a credit card allows the consumer to continue the debt balance. The consumer has to pay interest to use this facility.

Again, credit cards also have some differences with cash cards. The owner of a cash card can use that like currency. Credit cards are issued by credit unions or banks. These have specified shape which is standard as ID-1, ISO/IEC 7810. In size this is well-defined as 85.60 × 53.98 mm (3.370 × 2.125 in) (33/8 × 21/8 in).

 

Credit Cards in UK

The credit card industry of the UK is one of the sophisticated and most lucrative in the world. Here is you will find a brief description of some most important or popular types of credit cards offered in the UK.

 

0% Credit Cards

This type of credit card plan has acquired a great popularity since some recent years. These aim to attract customers offering of 0% on any purchases or balance transfers or both. Most of the lenders will be gifted to provide you with a credit card having 0% plan if you seek, and come across the qualifying criteria.

 

Balance transfer cards

Balance transfer cards are specialized in providing a lower which tends to be zero rates on transferring balance generally in a period of five and nine months. It tells that, in the current period, if you are paying a big amount to the credit card service provider as interest, then the card for balance transfer would allow you switching to them and get a time period in which there will be no due interest at all.

 

 

Bad Credit Cards

Cards for those who are with bad credit exist as well. If you possess any negative credit record, probably you will be conscious of the strain involved in attainment of a credit card. However, luckily there are some credit cards providers who take a flexible strategy to credit valuation and still may be willing to offer to you credit. You will be charged with a higher interest rate for using such credit cards but they provide a convenient means to get back of your credit on track. By consultation of your payments in full and on time you can initiate the path to repairing and improving your credit history. But you must use the card sagaciously and do not let it to compound your prevailing debt problems.

 

Cash back credit cards

Cash back credit cards have achieved a great popularity, mostly with those who have no difficulty in pay off their credit card fully each month. If you repay the total balance on your bill when it arrives, then you do not need to pay any interest.

 

To get your preferred credit card, contact a reputed service provider right away.

 

 

ISA

ISA

Individual Savings Account, popularly known as ISA is a type of financial account which allows individuals to make savings without paying tax on interest gained. An ISA allows you to save up to £7,200 in a year before paying tax on interest. It was introduced in 1999 by the government to inspire savings and investment.

 

Different Types of ISA’s

Normally, we get three types of ISA’s in the UK. These are Cash ISA’s, Stocks and Shares ISA’s. Let’s have a look on them.

 

Cash ISA is simply the savings account where individuals can save money skipping tax burden on any interest gained from there. In many aspects, it is like an ordinary savings account. These account holders can take out their money whenever they want. This account has some great benefits like easy account access and the fixed interest rate so the customers can learn the interest that they will receive before opening account.  Though, the upper limit of saving is £5,340 in a year.

 

Depending on the specific ISA, Stocks ISA’s and Shares ISA’s can function in a range of ways. The most general is it being financed through ISA Trust, a type of Investment Trust. Here a company, which deals with investment, pools ISA investments together from a figure of their consumers and extents around the investment to achieve maximum potential yields. Shares and Stocks ISA’s are typically the better choice for individual savers who are not interested to utilize their savings for some years.

 

It is impossible to withdraw when the account holder satisfies, with the conditions depending on the service provider. The main purpose this getups long term savers is that stocks get a significant rise, though there is correspondingly the possibility of it decreasing. Though, in most cases, stocks will upsurge long term. In addition to not having to pay tax on interest, tax on capital gains does not need to be paid either.

 

 

 

Savings Payments

Having a Cash ISA, the account holders save at any time suits them. They might want to make occasional payments, they might want to save a monthly set amount, or they may like to make a yearly payment depending on the situation when they have some available spare cash. With Shares and Stocks ISA’s the terms can vary significantly. Some have definite payment schedules which must be followed by although others are offering more flexibility.

 

The ISA structure was to some extent different at the time when it was introduced as it is today in those there two key types available, the maxi and the mini ISAs. The maxi ISAs joined the stock and cash features into one product even if the cash subscriptions limit kept at £3,000 and the overall grant at £7,000;

 

Mini ISAs were categorized as Cash or Stock ISAs, though an individual possibly will subscribe to one of each in a given year. For the mini stock ISA’s, the saving limits were fixed to £4,000 and £3,000 for the mini cash ISA’s, with a maximum aggregate subscription of £7,000.

 

Log Book Loans

Log Book Loans

Log book loans are short term cash loans which are secured on your vehicle. In the United Kingdom, this is form V5 frequently referred as the logbook. Since this loan is secured on the car/vehicle documents, so you will not face any credit checks so a log book loan can be obtained regardless of credit record.

 

A log book loan is secured just by the documents of your car. You need not handover that for taking the loan out. Therefore, you can use the car fully even after getting loan. Here you are just releasing your equity from the vehicle in the same approach as it would in case of a house.

 

Your borrowable amount of the loan depends upon some factors relating with the vehicle. Your borrowing power will be defined by the make and the model of your vehicle. So, the simple equation is the better car will empower you to take out a better loan amount. Most log book loan lenders lend between £200 and £50,000.

 

In order to get qualified for a log book loan, you will need to meet some criteria. The first condition is that, you must be the legal owner of the car and that has to be registered in your name. Secondly, the vehicle must be clear in the question of finance. Even though some lenders lend on the vehicles these are almost clear. Thirdly, the car must not be older more than ten years. Most of the lenders don’t agree to lend on an older car. However, some lenders may demand some more documents regarding the valid MOT and tax of the vehicle.

 

Why log book loans are taken out?

Well, there may have many reasons behind taking out a loan. Many people use such loans in order to meet the payments of holiday or some other special occasions. The money can be used to utilize a lucky business opportunity or ordinary home improvements purposes. In fact there is no restriction on how it will be used. Before borrowing such funds, the borrower should be aware of the alternative option to get the better opportunity.

 

 

The Advantages of log book loans

It is seen that, people who go for these types of loans tend to possess a poor credit history which is constraint to take loan from regular banks.  In case of the normal unsecured loans, if they fail to repay the installments, they will face increasing amount of liability in compounded account. But log book loans have a great benefit in this point. The downside is restricted up to the worth of the car.

 

The Disadvantages of log book loans

Though the log book loans have some exclusive advantages, yet it has some disadvantages too.  It is actually a secured loan where your car is used as the security. Similar to the other types of secured loans, if you fail to settle the obligation, you may lose your car. And the interest rate is comparative higher than the other means of secured loans.

 

However, log book loans provide an opportunity to meet quick money requirements. You should take decision according to your actual requirement.