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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.

Political Promises And What People Really Need In The UK

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Political Promises And What People Really Need In The UK

With the 2017 General Election now a thing of the past and seemingly a Government in place, it is time for the United Kingdom to move forward. However, you can see why a lot of people have no real enthusiasm or interest in politics these days, because there is a great deal of concern on more pressing matters at home. There is a lot of talk and promises made by political parties but when people are living week to week or day to day, it is very hard to listen to grand promises and the idea that things will become better. The worrying trend is that for many people, the situation is becoming much worse and there is no indicator or sign that things are going to improve.

Shelter is a housing charity and they have released figures that indicate more than half a million people in the United Kingdom have a job but also currently money in order to pay their rent. This isn’t people borrowing money for entertainment purposes, to go on holiday, to buy a new TV or lead a lavish lifestyle, this is people who are earning a living, taking in the benefits that they are entitled to and still being unable to pay their rent on their own. While some people are turning to family members for support, there are also people looking towards credit cards, to loan firms and other lenders. This is clearly a worrying situation because when you start to borrow on a regular basis like this, it becomes extremely difficult to break the habit and turn your life around.

Shelter cover the homeless sector well in the UK

The Shelter figures relate to one in three people who are renting and who are currently on a low level of income. When you think about the price of property in the UK, and the ever increasing cost of renting, there doesn’t appear to be any limit or level that will see people get the chance to move away from their current situation. No matter which political party you looked at in the run-up to the General Election, there was no indicator that there would be support or assistance that would make a change to the circumstances that these people face in their life. This has to be seen as a concern but it is fair to say that for many other people, policies which would help these people are not seen as a vote-winner.

Yes, there is a need to provide assistance and backing to everyone in the country but it would also be fair to say that some people need more assistance than others. This isn’t to say that anyone is more relevant than others but different people have different expectations of society and what they want from the local area they live in. This is a big factor in why many politicians and political parties will never go out of their way to provide strong support to the people that really need it most.

Many people can’t even think about the long-term options

In the long term, there are ways to move out of these issues but when you have short term problems arising all the time, it is very difficult for people to think about the long term. This is why if you are stuck looking at short term solutions, it is far better to look at short term solutions that are better for you. You know fine well that many people feel as though payday loans or even money lenders are the only options available to them, but this is definitely not the case. There are more affordable options when it comes to short term finance and a guarantor loan is an example of how people can improve their finances in a sensible manner.

It is likely that there will be increasing pressure placed on governments and politicians to bring more support and options for people, but even these changes, if they were to come, would take time. In the present day, a lot of people have to look to make decisions that impact on them now, today and this week before they can even think about next month.

There needs to be a period of political stability in the UK to allow changes and improvements to be made to give people the best chance of having a better life.