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Payday Loan Firms And Companies Are Still Struggling In UK

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Payday Loan Firms And Companies Are Still Struggling In UK

Even though payday loans have been roundly criticised in recent times, some people still find this to be the best way for them to obtain money at short notice. However, it would seem as though this is changing and many people are turning against the use of payday loans, which is strongly impacting on the market.

The biggest payday loan company in the United Kingdom is Wonga and the firm doesn’t have its troubles to seek of late. The company has recently announced pre-tax losses of close to £65 for 2016, a figure that will make many people wince. However, the company is keen to say that it is on the up, claiming that the business has been transformed. It has certainly been a rough time in recent years for the company, with the payday loan firm previously admitting that they have lost their way. Wonga has also received a great deal of criticism in allegedly targeting vulnerable people.

The company has received huge criticism for these actions but they say are looking to provide loan products that are much more flexible these days and that they look to provide responsible lending to their clients. Given the public backlash the company, and payday loan firms, receive in general, it is no surprise to see that there has been a downturn in the firm’s fortune. Wonga seems to think that this is just a short term issue and they have announced that they expect to return to profit for the 2017 figures, which will be issued in 2018.

Wonga has struggled of late

That remains to be seen but there is no denying that the company has had to make a lot of changes in recent times. There is an almost universal disapproval of payday loans in the media, and this has changed the way that people think about this option. While it is fair to say that the loan rates associated with these companies aren’t as bad as they used to be, it is clear that things still aren’t as positive as they should be for the majority of people.

The company has also had to deal with the fact that the Financial Conduct Authority, the FCA, has brought much stricter rules regarding the payday loan sector into play. This means that Wonga and companies like them have not been able to act in the manner that they used to. A big change came with the number of times a client was able to roll their loans over, and with this having been removed it is a very different landscape in the payday loan sector.

Wonga has had to pay out a lot of money

Another issue that the company has had to deal with is a £2.6m payout. This had to be made to more than 45,000 customers and it was down to the fact that threatening letters were sent out to customers from law firms that didn’t exist. Wonga also had a compensation issue to deal when close to 200,000 people ended up overpaying down to system errors. It is not just in the UK that Wonga have struggled because the company has also had issues in South Africa. It is fair to say that Wonga has enjoyed much better times than they are enduring now and it remains to be seen what the future holds for them.

There is a stigma attached to the payday loan market that means many people are not willing to work with these organisations. Of course, if someone is looking to obtain a payday loan, they probably have a poor credit score and they need money in a hurry, which limits their options when it comes to finding a suitable loan. Thankfully though, there are still some options available to people and even people with a poor credit score will find that help is on offer to them.

An example of a loan option that will suit many people is a guarantor loan. This style of loan has received a much better level of praise and focus in the media and the presence of the guarantor makes a big difference. This is down to the fact that the guarantor offers the lender confidence which in turns helps to keep the APR to a more reasonable level. This is definitely something that people can benefit from, and it is no surprise that many people are looking for this option.

Wonga is definitely struggling but they’ll hope that the future brings better fortune for them.

Get Out Of Debt This Spring

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Get Out Of Debt This Spring

Spring time is a great time of year for making changes or enjoying life. The winter months can seem a bit miserable so when the weather finally takes a turn for the positive, it is only natural that people feel optimistic and will look to make the most of what life has to offer. However, there are many reasons why people don’t feel optimistic or are able to grasp what life provides them with. For some people, it is poor health that slows them down but for other folk, it is their finances that cause issues and problems.

If it is money that is causing you problems, you want to think about getting out of debt this spring. This should be a key focus for you because when you have debt, it can ruin your life. Debt can negatively impact on your credit score, which will harm you when you try to obtain credit. You’ll also find that having debt causes you a lot of stress and worry. A lot of people find that they place themselves into further difficulty, perhaps harming relationships or placing their work in jeopardy. If you are dealing with debt, it can have a hugely negative impact on your life, and you need to take steps to get out of debt.

Do you need assistance in examining your finances?

One thing that impacts on people is feeling that they cannot get out of debt by themselves. This is the case for some people and if you feel as though you need assistance, it is important that you look for it or ask it. There is a great deal to be said for calling on others for support which means you need to be honest about your finances.

It would make sense to speak to a family member or friend about your finances but then again, a lot of individuals would rather they didn’t open themselves up to someone they know. This is a personal decision and it is something that every individual needs to weigh up for themselves. If you would rather not speak to someone you know about your financial situation, seek out a financial advisor or someone who has professional experience and expertise in dealing with debt. There is always assistance available and speaking to a professional can put your mind at ease.

Know what debt you have

It may sound funny but a lot of people don’t actually know what debt they have or how much money they actually owe. If you want to give yourself the best chance of getting out of debt, you need to know what debt you have. This is the starting point in making changes to your finances so go through your debt in a serious manner and make sure that you understand what you need to do to be free of debt.

Look at your finances and can you improve them

You will also find that examining your finances is a key step to take when you want to get out of debt. Knowing how much money you have coming into your account and going out will provide you with the best starting point for going forward. When you know what bills you need to pay, this lets you know the minimum amount of income you need in life and then you take it from there.

If there are bills or expenditure in life you don’t need, remove them. If you can bring in more money, do so. At this point, you should look to see if there are ways in which you can create money at the end of each month which will go towards paying off your debt.

Do you need short term help to take control of your finances?

It may be that you need to get control of your short term debt before you can make big changes in the long term. This is the case for many people and a short term loan isn’t the worst thing in the world if you find an attractive rate of APR. However, you should only take out this style of loan when it makes sense to do so and you really need the money.

Spring is a chance for a fresh start and if you want to move forward, look to move out of debt as best as you can.

The Best Finance Option For Your Needs

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The Best Finance Option For Your Needs

Given the amount of finance options that are available to choose from these days, it is inevitable that some will be suitable to you. However, you need to work out which finance options are going to be of benefit and interest to you and which finance options should be avoided as best as you can. An option that is ideal for one person will be unsuitable for another person so you will have to do some work yourself before you know which finance option is best for your needs.

One of the first things you need to have settled before you start looking for finance options is how much money do you actually need. This doesn’t mean how much money you can get or how much money it would be nice to have, it means how much money you actually need so that you can pay off whatever issue or problem has arisen.

Review your finance options

Far too many people look at their finance options, see that they can take out more money and then decide to do so. This is a silly move and it is one that actually causes a lot of problems for many people. If you would prefer to stay in full control of your finances, you’ll find that knowing how much money you really need will be the perfect starting point in determining what sort of loan you should take and who you should borrow from.

Other things to consider when thinking about your finance options include:

  • Have you reviewed your budget to ensure you are making the most from it?
  • Are you able to ask your family or friends for support?
  • What is your credit score?

These are all valid questions to ask and it may be that you can do without a loan or you can obtain a more attractive loan by considering these options. You should always look at your budget because you may be able to make savings that will release more money for you. You should also look to your family and friends because they may be happy to support you in your hour of need. You should always treat a loan with due care and respect, including loans from family members, but you’ll find that this is likely to be a loan that is more affordable than a loan from a traditional ore recognised lender.

Don’t risk falling out with a loved one over money

However, be aware that falling out with a friend or family member over money can cause major problems and could cause you a lot of hardship in life. You should only ever take a loan when you need it and you should always be confident about paying the loan back. This is the case when it comes to loans from traditional or online lenders but it is also the case when it comes to family members and friends. You should look to take the matter seriously enough that you draw up a contract outlining the terms and conditions of the loan.

If you have considered all of these options, and you know that your credit score is likely to hold you back from some loan options, you should look at the online options. There are two main options that people consider these days:

  • Payday loans
  • Guarantor loans

Payday loans are the better known of the two options but guarantor loans are the option you should consider. This is because the lending company considers the credit score of the guarantor not the applicant. This should provide you with a greater chance of finding an affordable and attractive loan, which is definitely something you should consider.

There is also a longer period of time to pay back a guarantor loan, so if you want to find the most suitable solution for your needs, this is definitely the option that is best for you.

A payday loan may provide you with money in a hurry, but it can cause a great deal of hassle and trouble for people. You should look to avoid this style of loan at all costs, even if it looks as though you don’t have too many other options. There is always a way to obtain money so make sure you know what the best finance options for your needs are.

Finding Money In A Hurry

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Finding Money In A Hurry

There are times when we all need to find money in a hurry and thankfully, there is a range of ways we can get our hands on some quick cash.

Down the back of the couch

Whenever you need money in a hurry, perhaps to have change for the bus or a parking meter, one of the places you should always check is down the back of the couch. This is where money spilling from your pocket is likely to end up, and you’ll find that this is one place where you can always pick up some much needed cash at short notice.

Of course, this isn’t likely to give you a lot of money, so if you need any reasonable amount of cash you should look elsewhere but when it comes to finding money in a hurry, there are few places better to look than down the back of the couch.

Carrying out odd-jobs

If you need money in a hurry, it may be that you can carry out odd-jobs in an attempt to raise the funds you need. This is going to be a smart way to provide you with the funding you need but you will have to work for it.

It can be difficult to promote yourself at this time but if you have skills or talents that are in demand, you should find that there are ways in which you can work to raise money at short notice.

Doing micro-jobs online

On a similar nature, there are many online sites where people can do quick jobs to get cash. You may need to wait a while for the money to clear, which is annoying, but you should consider this option if you need money in a hurry.

Applying for a loan from a traditional lender

When people are looking for a loan, it is understandable why people would look to apply for a loan from a traditional lender. These are the companies people instinctively think of when it comes to obtaining money and it makes sense you will look towards a bank or building society. Of course, these lenders are not very good at providing money in a hurry.

This is because they review all applicants in great detail and they will often take weeks to get back to an applicant. This means if you are looking to find money in a hurry, this isn’t an option that is likely to make much sense or be relevant to your needs.

Online options

As with everything these days, if you need something in a hurry, go online and you will find what you are looking for! There are plenty of companies operating online that will be happy to provide you with finance but as for the main types of loan available online, you will find these two options to be the most common:

  • Payday loans
  • Guarantor loans

It is likely that you will have heard of payday loans. This is a style of loan that has been rightly pilloried over the years as it is expensive and has caused many people to suffer further financial difficulty. The combination of needing to pay back a lot of money in a short period of time ensures that this is a loan that is better off avoided if possible.

It is correct to say that the leading payday loan companies are better than they used to be. The terms and conditions have improved and they look to provide more support for their clients. This should be seen as a positive step but it is also important to be aware that these lenders and loans are not the best option. They are still an option that should be avoided as best as possible.

If you are looking for money in a hurry and your credit score could be better, make sure you opt for the guarantor loan option. If you have someone who is willing to vouch for you, and they have a positive credit score, you’ll find that the lending company will review your loan application in a more positive manner.

This means you can obtain a loan at an attractive rate and the length of time you have to repay the option will be more attractive too. This is why you should seriously consider guarantor loans when you are looking to find money in a hurry.

This is a style of loan that is usually paid out within 24 hours and on many times, this style of loan is paid on the same day.