| The costs of bad credit
As with any other personal loan, the interest rate you get largely depends on your personal circumstances. However, with this particular type of loan, the single most important factor in determining the rate you get is your credit history. A poor credit rating means that the interest rate you will pay will be markedly higher than with other unsecured personal loans. As most bad credit loans are likely to be variable rate deals, you should be aware that your loan repayments will change in line with interest rates. Click here for more on fixed and variable rates. If you intend to pay your bad credit loan off early then make sure that you know what the early redemption penalties (if any) are. Remember: if you want to repair your credit rating over time then you need to make every payment on any loan you are given.
Payday lending companies fill consumer demand
Members of the Missouri General Assembly have introduced bills to further regulate the growing payday loan industry in the state, but controversy still surrounds the movement to standardize these businesses.
Missouri is home to 1,644 payday loan stores that charge an average annual percentage rate (APR) of 422 percent for short-term cash loans, according to a March 11 Columbia Daily Tribune article. New legislation would cap this annual rate at 36 percent, a move that would essentially eliminate payday loans in the state, according to the article.
Tony Garrett, manager of the Kirksville Advance America Cash Advance, said his company serves 150 to 200 customers at any given time. He said that despite the current payday loan debate, he thinks his business addresses a consumer need.
Money troubles begin at home
A recent opinion poll reveals that almost two-thirds of families in Bangkok have at least one member who has difficulty making ends meet, is desperately indebted or who cannot save enough for a rainy day. According to the poll, in which 1,845 people were interviewed between March 30 and April 3, money problems top the list of topics that family members discuss the most. The findings appear to lend credence to the suspicion that too many Thais go through life without ever learning about financial discipline or saving for unforeseen emergencies, let alone building a nest egg for retirement. Savings and financial independence are never an issue for many people because they know they can always borrow from parents, siblings or relatives, not only to get by but also to indulge in overspending and conspicuous consumption.
Rate rises affecting UK homeowners
New research has confirmed recent opinions that a series of interest rate hikes have led more UK homeowners to turn to fixed-rate mortgage offers, it has been revealed.A Fool.co.uk study also found that borrowers expected further rises in the coming months, with first-time buyers and those choosing to remortgage their properties among the most cautious.Currently almost eight out of ten borrowers are looking to fixed-rate products, according to Fool – double the number that were doing so in August of last year.Three rate rises since the beginning of that month have contributed to a doubling in the popularity of fixed-rate products among remortgagers, up from 40 per cent to 80 per cent since August. Nine out of ten first-time buyers are also now rejecting the option of variable rates."Currently, interest rates are expected to rise 0.25 per cent within the next two months and a further 0.25 per cent six months after that.
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