Jun
27
Low Income Families Look To Loans To Replace Stolen And Damaged Goods
Filed Under Finance | Leave a Comment
Tom Dawson asked:
Not having insurance could leave those consumers on low incomes at greater financial risk, it has been suggested.
The news comes as research carried out by the Association of British Insurers (ABI) reveals that just over a third of people (35 per cent) living in low-income homes - those households which earn less than 10,000 pounds per year - do not have any form of insurance. And with the firm suggesting that such consumers are more at risk from crime, flooding and fire than their higher-earning peers, not taking out cover may see them struggle more to meet demands on their finances such as utility bills and personal loan repayments.
In addition, the ABI revealed that 44 per cent of the poorest households have purchased home contents insurance, in comparison to the 82 per cent of Britons on median incomes (earning between 15,000 pounds and 30,000 pounds) who have the product. Overall, a third of people on low incomes have motor cover, while only a quarter have taken out life insurance.
Research from the association also showed that those consumers with an annual income of less than 5,000 pounds are 71 per cent more likely to have their homes burgled at least once, in comparison to households earning at least 30,000 pounds. Meanwhile, arson rates are some 30 times higher among people living in the most deprived communities. It was also suggested that consumers making the least amount of money per year are more susceptible to flooding.
Speaking at a seminar on financial inclusion and insurance, Stephen Haddrill, director general of the ABI, said: “Insurance provides valuable protection to people on all income levels. The poor are least able to deal with financial loss and depend most on insurance. We need to address the issue of low take-up in low-income groups. A lack of spare cash is the biggest factor holding back the purchase of insurance by lower income households.”
The association also asserted that when those on low incomes and who are without insurance have items either damaged or stolen, they have to meet the costs of replacing such goods themselves, which in turn may put pressure on their day-to-day money management. Consequently, a third of such consumers are shown to borrow, whether this be through a secured loan, credit card or other means, in a bid to meet such costs and in turn are “increasing their indebtedness”.
As a result, for those consumers looking to replace damaged goods or to get repairs on their property carried out, applying for a personal loan could be an effective way of meeting such costs. In addition, taking out a loan could also help consumers organise their finances and free up disposable income, as they could be able to pay off various debts quickly - potentially leaving them more money to buy a sufficient insurance policy. Earlier this year, Chris Tapp, associate director of Credit Action, stated that by taking the time each month to review their finances, consumers will be able to identify where their money goes and so could make payments on personal loans and other types of credit with greater efficiency.
Ruth
Not having insurance could leave those consumers on low incomes at greater financial risk, it has been suggested.
The news comes as research carried out by the Association of British Insurers (ABI) reveals that just over a third of people (35 per cent) living in low-income homes - those households which earn less than 10,000 pounds per year - do not have any form of insurance. And with the firm suggesting that such consumers are more at risk from crime, flooding and fire than their higher-earning peers, not taking out cover may see them struggle more to meet demands on their finances such as utility bills and personal loan repayments.
In addition, the ABI revealed that 44 per cent of the poorest households have purchased home contents insurance, in comparison to the 82 per cent of Britons on median incomes (earning between 15,000 pounds and 30,000 pounds) who have the product. Overall, a third of people on low incomes have motor cover, while only a quarter have taken out life insurance.
Research from the association also showed that those consumers with an annual income of less than 5,000 pounds are 71 per cent more likely to have their homes burgled at least once, in comparison to households earning at least 30,000 pounds. Meanwhile, arson rates are some 30 times higher among people living in the most deprived communities. It was also suggested that consumers making the least amount of money per year are more susceptible to flooding.
Speaking at a seminar on financial inclusion and insurance, Stephen Haddrill, director general of the ABI, said: “Insurance provides valuable protection to people on all income levels. The poor are least able to deal with financial loss and depend most on insurance. We need to address the issue of low take-up in low-income groups. A lack of spare cash is the biggest factor holding back the purchase of insurance by lower income households.”
The association also asserted that when those on low incomes and who are without insurance have items either damaged or stolen, they have to meet the costs of replacing such goods themselves, which in turn may put pressure on their day-to-day money management. Consequently, a third of such consumers are shown to borrow, whether this be through a secured loan, credit card or other means, in a bid to meet such costs and in turn are “increasing their indebtedness”.
As a result, for those consumers looking to replace damaged goods or to get repairs on their property carried out, applying for a personal loan could be an effective way of meeting such costs. In addition, taking out a loan could also help consumers organise their finances and free up disposable income, as they could be able to pay off various debts quickly - potentially leaving them more money to buy a sufficient insurance policy. Earlier this year, Chris Tapp, associate director of Credit Action, stated that by taking the time each month to review their finances, consumers will be able to identify where their money goes and so could make payments on personal loans and other types of credit with greater efficiency.
Ruth
Jun
25
Jess Peterson asked:
Many people are forced to live on meager amounts of government benefits each month, which can makes purchasing items that are pricier, such as furniture or appliances, hard to do. Most government benefit programs are only large enough so that the recipient has just enough money to scrimp by from month to month in order to pay for everyday living expenses like rent and utilities, and to purchase food. Rarely does any benefit program offer the recipient enough money to cover emergencies or larger purchases.
Fortunately, there are loans for those who draw government benefits that can help them to make needed purchases that their smaller monthly incomes do not allow them to make outright. These loans have been a godsend to many people who need to make larger purchases but do not have the means to do so. Loans for those who draw government benefits can be made to those who are receiving Social Security, Supplemental Security Income (SSI), retirement, pensions, and welfare payments.
Secured And Unsecured Loans For Monthly Income Consumers
The types of loans that are available for the monthly income consumer can be either secured or unsecured. Secured loans are those that are written for those people who have security to offer to the lender in the form of collateral, such as those who are benefits but who own their own homes or other real property that the lender can place a lien upon. Secured loans for those who are on benefits are less expensive than unsecured loans (those that do not require collateral) because the lender is assuming a greater risk when writing these types of loans. This means that you will pay less interest on the money that is borrowed when you take out a secured loan.
The secured loan gives the lender security in your property and if you fail to repay him for any reason, the lender can seize the property and force the sale of the property in order to recoup the money that has been extended to you in the form of a loan. Unsecured loans for those who are on benefits do not require that you post collateral, and are therefore more expensive when it comes to calculating the interest that is charged for unsecured borrowers. So even though the secured loan for people who are on benefits is less expensive, there are more non-homeowners out there - which makes the unsecured loan the most popular type of loan, but also the hardest to obtain.
Obtaining Your Loan
When you apply for either the unsecured or secured version of the loan for people on benefits, your lender will take into account your credit score (as measured on the FICO credit scoring scale), your monthly income from benefits, and the other bills that you have coming in that are previous obligations. The lender will use all of these factors to determine your ability to repay the loan money that is extended to you. You should be prepared to submit to a credit check, provide the lender with statements of your monthly income from the agency that issues your benefits, and also to fill out a loan application that will ask general information about how to contact you and perhaps will ask for references of three people who know you well.
Amounts Available
Many people on benefits are eligible for loans of this type in amounts ranging from $500 up to around $5,000. The amount that you borrow should never be more than you truly need because you will be paying interest on this money. You should also make sure that the amount of your monthly payments does not exceed what you are comfortable with paying because you might find yourself overextended financially and unable to repay the loan.
Hazel
Many people are forced to live on meager amounts of government benefits each month, which can makes purchasing items that are pricier, such as furniture or appliances, hard to do. Most government benefit programs are only large enough so that the recipient has just enough money to scrimp by from month to month in order to pay for everyday living expenses like rent and utilities, and to purchase food. Rarely does any benefit program offer the recipient enough money to cover emergencies or larger purchases.
Fortunately, there are loans for those who draw government benefits that can help them to make needed purchases that their smaller monthly incomes do not allow them to make outright. These loans have been a godsend to many people who need to make larger purchases but do not have the means to do so. Loans for those who draw government benefits can be made to those who are receiving Social Security, Supplemental Security Income (SSI), retirement, pensions, and welfare payments.
Secured And Unsecured Loans For Monthly Income Consumers
The types of loans that are available for the monthly income consumer can be either secured or unsecured. Secured loans are those that are written for those people who have security to offer to the lender in the form of collateral, such as those who are benefits but who own their own homes or other real property that the lender can place a lien upon. Secured loans for those who are on benefits are less expensive than unsecured loans (those that do not require collateral) because the lender is assuming a greater risk when writing these types of loans. This means that you will pay less interest on the money that is borrowed when you take out a secured loan.
The secured loan gives the lender security in your property and if you fail to repay him for any reason, the lender can seize the property and force the sale of the property in order to recoup the money that has been extended to you in the form of a loan. Unsecured loans for those who are on benefits do not require that you post collateral, and are therefore more expensive when it comes to calculating the interest that is charged for unsecured borrowers. So even though the secured loan for people who are on benefits is less expensive, there are more non-homeowners out there - which makes the unsecured loan the most popular type of loan, but also the hardest to obtain.
Obtaining Your Loan
When you apply for either the unsecured or secured version of the loan for people on benefits, your lender will take into account your credit score (as measured on the FICO credit scoring scale), your monthly income from benefits, and the other bills that you have coming in that are previous obligations. The lender will use all of these factors to determine your ability to repay the loan money that is extended to you. You should be prepared to submit to a credit check, provide the lender with statements of your monthly income from the agency that issues your benefits, and also to fill out a loan application that will ask general information about how to contact you and perhaps will ask for references of three people who know you well.
Amounts Available
Many people on benefits are eligible for loans of this type in amounts ranging from $500 up to around $5,000. The amount that you borrow should never be more than you truly need because you will be paying interest on this money. You should also make sure that the amount of your monthly payments does not exceed what you are comfortable with paying because you might find yourself overextended financially and unable to repay the loan.
Hazel
Jun
23
vinod s asked:
Do I understand this financial breakdown correctly?
Do I understand this financial breakdown correctly?
The US consumers have been fueling the world economy by producing and consuming the most - enabling technological advances as financial backing seems feasible for marketing every need of the consumers. That is the good part.
In recent decades the producing part has dwindled due to China and may be lack of any major breakthrough in technological advances. However, the consumption still goes on.
The mortgage loans offered by the US banks (note - highest value consumption) were backed by banks all across Europe China and Japan. Now all these banks shall have to write off these loans - Total of Billions of Dollars !!!
If this is correct I wonder if there isn’t enough data and advanced mathematical methodology to predict and avoid this. We have super computers to monitor the workings of Nuclear Bombs - how about creating one to save these billions - a lot of good can be done with that kind of money. What do you say?
Emma
Jun
22
Simon Lance Burgess asked:
Loan payment protection insurance has never been more relevant to society than it is at the moment. It is a fact that the UK’s population as a whole has never been more indebted than it is right now. More and more individuals are accumulating debt as a direct result of spending beyond their means and facing up to the consequences of their actions later.
However, debt may not necessarily come as a result of over-spending. It may simply be that individuals have to run up debts in order to survive as a result of the gulf between the cost of living and the actual level of earnings. Christmas is a prime example of a time of year when many families take out loans in order to pay for their celebrations. What if an individual lost his or her job though? How would the debt affect his or her life then? That is where loan payment protection insurance becomes an appealing prospect.
Loan payment protection insurance is designed to make monthly repayments on a loan should the individual in debt lose his or her job via redundancy or be unable to work as a result of long term illness. These loan payment protection insurance policies provided tax-free payments, typically for up to twelve months, thus giving the individual peace of mind and removing the stress of finding an alternative way to make repayments. Obviously it is necessary for the individual in question to let the provider know of a change of circumstances, but a claim can be made after a period of a month out of work in most cases.
It is possible to purchase loan payment protection insurance to cover all debts from a standalone provider. The premium is paid monthly and often calculated on the level of debt rather than at a fixed rate. If an individual has extensive debts with several providers, then this form of loan payment protection insurance can actually be far less confusing than having several policies at the same time.
Jerry
Loan payment protection insurance has never been more relevant to society than it is at the moment. It is a fact that the UK’s population as a whole has never been more indebted than it is right now. More and more individuals are accumulating debt as a direct result of spending beyond their means and facing up to the consequences of their actions later.
However, debt may not necessarily come as a result of over-spending. It may simply be that individuals have to run up debts in order to survive as a result of the gulf between the cost of living and the actual level of earnings. Christmas is a prime example of a time of year when many families take out loans in order to pay for their celebrations. What if an individual lost his or her job though? How would the debt affect his or her life then? That is where loan payment protection insurance becomes an appealing prospect.
Loan payment protection insurance is designed to make monthly repayments on a loan should the individual in debt lose his or her job via redundancy or be unable to work as a result of long term illness. These loan payment protection insurance policies provided tax-free payments, typically for up to twelve months, thus giving the individual peace of mind and removing the stress of finding an alternative way to make repayments. Obviously it is necessary for the individual in question to let the provider know of a change of circumstances, but a claim can be made after a period of a month out of work in most cases.
It is possible to purchase loan payment protection insurance to cover all debts from a standalone provider. The premium is paid monthly and often calculated on the level of debt rather than at a fixed rate. If an individual has extensive debts with several providers, then this form of loan payment protection insurance can actually be far less confusing than having several policies at the same time.
Jerry
Jun
22
Stephen Alan Smith asked:
It can be a frustrating time for anybody who is trying to obtain a loan with bad credit history. Many believe they will not be able to get a loan because of their bad credit. However there are loan options available for people who have adverse credit, they will probably come with special terms that will apply to the loan, nevertheless there are still options out there.
Payday loans are a common gateway to the loan industry for anyone with a sub-par credit history. Payday loans are famous for their practices in predatory lending, however, and consumers should keep a keen eye on any lender offering them. They don’t typically offer much, and interest rates are incredibly high. It isn’t uncommon to pay ten times as much in interest as a normal loan would entail. Payday loans should only be used as a last resort, because of this.
Secured loans are a great idea for consumers with adverse credit. With a secured loan, something of value will be required from the consumer to use against the loan. This can be a car or a home- and in some cases, even proof of responsibility in paying one’s rent can be act somewhat as a type of security. A borrower will benefit from a secured loan because they are less risky for the creditor.
Charismatic personalities can sometimes talk their way into a loan, even with the history of bad credit. A lender may put more trust into a consumer if a suitable plan is put in place, this will need to include your financial budget and payment plan. This option doesn’t work for everyone, as it requires a motivated personality and the ability to influence others- as well as proper negotiation tactics. Borrowers will find that these characteristics will take them a long way in the finance industry.
If borrowers own a mailbox or some form of mailing address, they probably are already familiar with preapproved credit cards and other forms of loans. It’s not hard to get multiple offers each week- but instead of trashing the offers instantly, take the time to look through a few to see the offers each credit card entails. Some lenders are designed especially for catering to borrowers with poor credit, and some offers are literally too good to pass up. It is important to look for hidden fees, scams or predatory lenders which can all be too familiar in this industry.
Family and friends are quite valuable in the situation of poor credit. Lenders will accept loan applications that are backed by others with good credit scores. In the event of the loan defaulting, the one who signed for the person will be responsible for paying the debts. Therefore, lenders get less risk and borrowers get decent interest rates and options in loans.
Final Thoughts
The financial industry is more lenient to those with bad credit than most would think. This is especially true in the case of lending institutions that allow bad credit loans to be offered on a constant basis. As borrowers will find, lenders are just as eager to give out a loan as borrowers are to obtain one. Knowing how to negotiate and how to be charismatic can mean all the difference in the process.
Mike
It can be a frustrating time for anybody who is trying to obtain a loan with bad credit history. Many believe they will not be able to get a loan because of their bad credit. However there are loan options available for people who have adverse credit, they will probably come with special terms that will apply to the loan, nevertheless there are still options out there.
Payday loans are a common gateway to the loan industry for anyone with a sub-par credit history. Payday loans are famous for their practices in predatory lending, however, and consumers should keep a keen eye on any lender offering them. They don’t typically offer much, and interest rates are incredibly high. It isn’t uncommon to pay ten times as much in interest as a normal loan would entail. Payday loans should only be used as a last resort, because of this.
Secured loans are a great idea for consumers with adverse credit. With a secured loan, something of value will be required from the consumer to use against the loan. This can be a car or a home- and in some cases, even proof of responsibility in paying one’s rent can be act somewhat as a type of security. A borrower will benefit from a secured loan because they are less risky for the creditor.
Charismatic personalities can sometimes talk their way into a loan, even with the history of bad credit. A lender may put more trust into a consumer if a suitable plan is put in place, this will need to include your financial budget and payment plan. This option doesn’t work for everyone, as it requires a motivated personality and the ability to influence others- as well as proper negotiation tactics. Borrowers will find that these characteristics will take them a long way in the finance industry.
If borrowers own a mailbox or some form of mailing address, they probably are already familiar with preapproved credit cards and other forms of loans. It’s not hard to get multiple offers each week- but instead of trashing the offers instantly, take the time to look through a few to see the offers each credit card entails. Some lenders are designed especially for catering to borrowers with poor credit, and some offers are literally too good to pass up. It is important to look for hidden fees, scams or predatory lenders which can all be too familiar in this industry.
Family and friends are quite valuable in the situation of poor credit. Lenders will accept loan applications that are backed by others with good credit scores. In the event of the loan defaulting, the one who signed for the person will be responsible for paying the debts. Therefore, lenders get less risk and borrowers get decent interest rates and options in loans.
Final Thoughts
The financial industry is more lenient to those with bad credit than most would think. This is especially true in the case of lending institutions that allow bad credit loans to be offered on a constant basis. As borrowers will find, lenders are just as eager to give out a loan as borrowers are to obtain one. Knowing how to negotiate and how to be charismatic can mean all the difference in the process.
Mike
Jun
21
Need help on a statistics problem.:)?
Filed Under Mathematics | 1 Comment
Huyuk asked:
1) Data from U.S. Federal Reserve Board (House hold Debt Service Burden, 2002) on the percentage of disposable personal income requied to meet consumer loan payments and mortgage payments for selected years are shown in the following table:
1) Data from U.S. Federal Reserve Board (House hold Debt Service Burden, 2002) on the percentage of disposable personal income requied to meet consumer loan payments and mortgage payments for selected years are shown in the following table:
Consumer Debt/House Hold Debt/ Consumer Debt / Household debt
7.88/6.22/6.24/5.73
7.91/6.14/6.09/5.95
7.65/5.95/6.32/6.09
7.61/5.83/6.97/6.28
7.48/5.83/7.38/6.08
7.49/5.85/7.52/5.79
7.37/5.81/7.84/5.81
6.57/5.79
A) What is the value of the correlation coefficient for this data set?
B) Is it reasonable to conclude in this case that there is no strong relationship between the variables (linear or otherwise?) Use a graphical display to support your answer.
Pedro
Jun
18
Lyn93 asked:
I am overwhelmed with loans, Credit Cards, and bills. The thing is I have decided to go through Consumer Credit Counseling to have my interests on my loans lowered and pay off my loans, and the Credit Cards which are now in collections. I cannot handle this debt on what I make, because my job has cut hours, and cut completely out overtime. I was told by someone who went through Credit Counseling, and she sent them the money that they were suppose to send the different bill collectors to pay their debt, but the Credit Counseling took too long sending out those payments, and she received numerous of calls from her debtors. Eventually the money was sent to her debtors, but it caused her credit to look worsier on her Credit Report, than if she would of handle it herself, because they took too long sending the payments. My question is, Is getting help from Credit Counselors the way to go?
Aaron
I am overwhelmed with loans, Credit Cards, and bills. The thing is I have decided to go through Consumer Credit Counseling to have my interests on my loans lowered and pay off my loans, and the Credit Cards which are now in collections. I cannot handle this debt on what I make, because my job has cut hours, and cut completely out overtime. I was told by someone who went through Credit Counseling, and she sent them the money that they were suppose to send the different bill collectors to pay their debt, but the Credit Counseling took too long sending out those payments, and she received numerous of calls from her debtors. Eventually the money was sent to her debtors, but it caused her credit to look worsier on her Credit Report, than if she would of handle it herself, because they took too long sending the payments. My question is, Is getting help from Credit Counselors the way to go?
Aaron
Jun
18
Are there any class action law suits aimed at devious finance practices?
Filed Under Law & Ethics | 1 Comment
Stevie Do asked:
When is it considered Malpractice or misrepresentation on a finance company?When one of its officers claims to have a contract for afixed rate loan and slips a consumer an ARM or an Adjustable rate loan. This screams for attention now. An abnormal amount of familys are losing there lifelyhood to this practice and Californains need to stand together and outlaw this practice and make the payments retroavtive? HELP?
Heather
When is it considered Malpractice or misrepresentation on a finance company?When one of its officers claims to have a contract for afixed rate loan and slips a consumer an ARM or an Adjustable rate loan. This screams for attention now. An abnormal amount of familys are losing there lifelyhood to this practice and Californains need to stand together and outlaw this practice and make the payments retroavtive? HELP?
Heather
Jun
13
$300, $500 Up to $1000 Cash Advance Loans For People With Bad Credit - Instant Approval
Filed Under Finance | Leave a Comment
Marcia Templer asked:
Most cash advance lenders can offer consumers, who require emergency cash in 24 to 48 hours, $300 to $1000 with minimal qualification requirements. Whether you have excellent credit or poor credit, cash advance loans are available to people with all credit types. Even people with a history of Chapter 7 or Chapter 13 bankruptcy can successfully apply and secure funds via a cash advance lender.
How do I apply for a loan?
You can apply for a cash advance loan, online or at your neighborhood cash store. Consumers are increasingly utilizing online cash resources because they offer a faxless, online application system that makes the application process
simple, convenient and discreet.
When completing your loan application, ensure that you complete the application thoroughly and truthfully. A spotty application will lead to a dismissal of your loan application. Consider, the fact that your lender is lending you cash in a short period of time based on your ability to repay the loan.
I’m worried about my credit history - can I get a loan with bad credit or bankruptcy?
Yes. Cash advance loans are available to all credit types. Your lender is more concerned with your ability to repay the loan than your credit score. In fact most lenders do not check your credit report, they just need to verify your employment information.
I live in State X, can I get a loan?
Cash advance loans are offered in all 50 states, whether applying online or at your neighborhood cash store. These states usually have various online resources for instant approval, online cash advance loans: AL, AZ, CA, CO, DE, FL, HI, ID, IL, KS, KY, LA, ME, MI, MN, MO, MS, MT, NM, NV, OH, OK, OR, PA, RI, SD, TN, TX, UT,WA, WI, WY.
What are the minimal loan qualifications
You must be at least 18 years or older. You must earn at least $1000 a month after taxes and other deductions. Lastly, you must have a checking or savings account so that the lender can transfer your cash electronically to your account.
Lester
Most cash advance lenders can offer consumers, who require emergency cash in 24 to 48 hours, $300 to $1000 with minimal qualification requirements. Whether you have excellent credit or poor credit, cash advance loans are available to people with all credit types. Even people with a history of Chapter 7 or Chapter 13 bankruptcy can successfully apply and secure funds via a cash advance lender.
How do I apply for a loan?
You can apply for a cash advance loan, online or at your neighborhood cash store. Consumers are increasingly utilizing online cash resources because they offer a faxless, online application system that makes the application process
simple, convenient and discreet.
When completing your loan application, ensure that you complete the application thoroughly and truthfully. A spotty application will lead to a dismissal of your loan application. Consider, the fact that your lender is lending you cash in a short period of time based on your ability to repay the loan.
I’m worried about my credit history - can I get a loan with bad credit or bankruptcy?
Yes. Cash advance loans are available to all credit types. Your lender is more concerned with your ability to repay the loan than your credit score. In fact most lenders do not check your credit report, they just need to verify your employment information.
I live in State X, can I get a loan?
Cash advance loans are offered in all 50 states, whether applying online or at your neighborhood cash store. These states usually have various online resources for instant approval, online cash advance loans: AL, AZ, CA, CO, DE, FL, HI, ID, IL, KS, KY, LA, ME, MI, MN, MO, MS, MT, NM, NV, OH, OK, OR, PA, RI, SD, TN, TX, UT,WA, WI, WY.
What are the minimal loan qualifications
You must be at least 18 years or older. You must earn at least $1000 a month after taxes and other deductions. Lastly, you must have a checking or savings account so that the lender can transfer your cash electronically to your account.
Lester
Jun
12
Federal educational loan vs. Private lender?
Filed Under Higher Education (University +) | 1 Comment
♡unicorn♡ asked:
What are some ups and downs ?
Easy to obtain, most lenient, easiest to work with?
Flexible consumer guidelines?
The most freedom?
Better Rates?
Rosa
What are some ups and downs ?
Easy to obtain, most lenient, easiest to work with?
Flexible consumer guidelines?
The most freedom?
Better Rates?
Rosa