How To Stretch Your Student Loan

If you?re considering going to university, there is a strong chance that you?re also contemplating taking out a student loan to fund your university expenses. Student loans don?t have to equate to student debt and if you plan your finances, it is possible to get by without student loans and possibly even profit from them. There are many sites on the internet which provide downloadable student finance guides and online advice on how best to manage your finances. Moneynet offers a comprehensive student finance guide, whilst the money section on support4learning is also a popular internet resource.

The first step to avoid financial dependence on a student loan is to consider taking a gap year to gain experience and earn money. This is a great opportunity to start saving for university and will give you funds to cover accommodation and bills without tapping into your student loan.

In terms of managing your personal finances, you could open up a notice savings account and invest your gap year earnings ? alongside a student loan, accruing interest on the total amount, but being disciplined so that you only ever tuck into your savings ? not the loan itself.

If you?re comfortable that you can timetable it ? you might consider a part-time job to help finance your studies, using your income to cover the majority of your expenses so that you can leave your bank savings alone. There will be times when you may have to make a withdrawal from your savings account, but if you leave the capital there as long as possible ? the more money you will make.

If you?re concerned about getting the maximum amount of interest on your loan, you could try our loans comparison service.

If you keep a tight grip on your finances, then it is likely that you will be in a strong position to pay off your loans when you graduate. Whilst studying, you might also be interested in conducting price comparison research for insurance and current accounts to ensure you?re getting the best deals. Don?t be seduced by high street offers of freshers? fair promotions ? collect as much information as you can, so you can make an informed financial decision. It?s also worth setting yourself up with online accounts which you manage through an account aggregation tool. Account aggregation allows you to manage your money online and can save you time, foot leather and bank charges. If you want to find out more about account aggregation, visit the Channel 4 website which offers a detailed guide.

Has anyone seen my twenties?

Premature aging is spreading across the UK and is particularly prevalent amongst recent graduates in the UK who, upon leaving university, are plunged straight into fears about the property ladder, pensions and paying off their student debts. These young people graduate at the age of 21, do not pass go and head straight to 35, worrying about their personal finance investments before finding their feet in life.

These un-twentysomethings lifestyles can generally categorised within two extremes, either not going out at all because they have no money or going out and partying every Friday and Saturday night, because they feel directionless. Groups such as these may not seem particularly worrying, but many graduates are finding that they are working themselves to the bone by taking on two jobs and working seven days a week just to meet their bills. Some young graduates are known to even take on multiple jobs so they can bolster up their salary details for mortgage applications. By doing so, they commit themselves to a loan that can only be repaid through exhaustion.

These characteristics have been assigned to the emergence of the quarter-life crisis, but this epidemic of financial concern tends to be a problem for those who have been through higher education, rather than those who took full time employment straight after leaving school. This represents a worrying trend given the government encouragement for increased school leavers to attend university.

UK graduates find it particularly tough as they are often groomed to believe that they can get good salaries and corporate jobs. Yet many young people leave university only to be hit by the hard reality that the competition is immense and that expectations must be lowered. Some graduates, unable to find work immediately after graduation, get themselves into further debt by taking out career development loans and other forms of commercial borrowing to undertake a further qualification.

Due to the volume of UK graduates on the market, the need to stand out has made life much more competitive. Contacts, professional qualifications, Masters degrees and relevant work experience are now required to help secure a "graduate" career.

Moneynet, a consumer finance website, released a recent report stating that graduates need to check their credit histories when they finish their courses. Richard Brown, the CEO of moneynet warned that graduates could face a credit history nightmare at the end of university due to relocation, late payments and low credit. Moneynet has taken steps to provide publications which can help students and their families finance higher education, but the sheer scale of the student market now dictates that financial problems go beyond a lack of financial planning.

According to Credit Action ( http://www.creditaction.org.uk/debtstats.htm ), a third of prospective students underestimate the cost of university, with 25% of freshers expecting their parents to foot the bill. Both parents and students apparently underestimate the true costs of university ? parents by almost £4,000 and students by over £6,000. A quarter of parents state that they still have adult children living at home and over 14% of parents with adult children have remortgaged their homes or taken out loans to help their children out of the financial quagmire. Student debts and difficulties getting onto the first rung of the housing ladder are given as the main reasons for offspring being unable to leave home. First-time buyers are being required to save harder and for longer to secure their first home, in spite of a supposedly cooling housing market.

It also seems that parents who try to help out their offspring by giving cash to get them out of their financial struggles may be doing more harm than good according to the NatWest. The report shows that those who accepted payouts from their parents were 25% more likely to then go overdrawn in the future than those who didn?t take this form of financial help. Overall a third of young people said their parents had never taught them how to manage their money. If you?re a parent and concerned that your children need help with managing their pocket-money, moneynet offers a family finance guide with a few suggestions. It doesn't offer a magical solution to student debt, but it might provide some help in financial management.

Don't let your personal loan become a personal moan

Most of us have been in a position at some point when we simply have had insufficient funds to pay for something. This could be car insurance/repairs, course fees, holiday, Christmas presents, electrical items or even the weekly shopping. According to Credit Action, 2.4 million personal loan agreements were recorded in the first quarter of 2005, totalling £13.5 billion. The national debt education charity reported that 30% of the personal loans were for cars, 24% for home improvements and 20% for debt consolidation. The total outstanding balance for personal loans reached £93 billion by March 2005.

Personal loans can help you out of a difficult period when cash-flow is restricted, but don?t go for the first one you find or you may find that your loan becomes a lifetime commitment and lifetime strain. There are numerous personal finance comparison websites available for personal loans including moneynet, moneyfacts and lowermybills.

In their consumer loans guide, moneynet advise that as a general rule of thumb, the more you borrow ? the cheaper the rate of interest. For example, a loan of £1,000 may carry an interest rate as high as 20% - reportedly justified by the lenders because of the relatively high administration costs associated with arranging a loan. For larger personal loans, lenders might only charge interest rates of around 6%.

Personal loans fall into two categories: secured and unsecured. Unsecured personal loans are the most popular, as secured loans may jeopardise the borrower?s property or other asset. Secured loans are arranged on the assumption that the borrower puts up a form of security to the lender, typically the borrower?s property. This allows the lender to take ownership of the asset should loan repayments be jeopardised. Whilst the prospect of losing your home may seem like a major disadvantage, the benefits of a secured loan often allow you to borrow more money at a lower rate of interest.

Despite such benefits however, most people are reluctant to lose their home and therefore take out unsecured loans because of this.

When reviewing personal loans and researching the cheapest loan on offer, you should be aware that you need to investigate the terms and conditions, as well as the annual percentage rate (APR). Note that if your credit history is poor ? then the terms of the loan may reflect this. Do your homework on redemption penalties and any other charges which might be associated with your loan. Some lenders will also offer payment breaks (deferred payment) either at the beginning of the loan period, or perhaps during the term, but again read the terms and conditions and check that excessive interest will not accumulate over any break periods.

Personal loans in the UK are governed by the Consumer Credit Act 1974, but remember that you are ultimately responsible for borrowing a given sum of money and that once you sign a credit agreement, you are bound by the terms and conditions.

If you are finding the repayments challenging, always tell the lender as soon as possible and remember that any loan repayment problems are likely to be captured in your credit record/history, which will later impact on any other borrowing.

Critical Illness Insurance Is Critical

A difficult time in life can teach you what's really important. Just ask anyone whose life took a sharp turn when a medical problem was discovered.
First off there are expenses, a difficulty for any family but which are a special challenge for any family who are covered by a limited medical insurance policy or have no insurance at all.

If you have limited medical insurance, there is sometimes just not enough to pay the bills. You could have costs of staying near a clinic while hoping and praying that you will get well.

Some people have family members and friends who have started get well funds to help pay expsenses. But all of this doesn't answer why there was no critical illness insurance.

This Is Why Critical Illness Insurance Is Important

Critical illness insurance is important as what you are doing is insuring your income, just like you insure your house. You wouldn't own a house without insurance, so why do you walk around without insurance against a personal catastrophe? You'll never know anything about expenses until you confront expenses caused by a major illness! From no income coming in to all the savings going out, families can be left in a great bind. Now that you've bothered to read this article, call your life insurance broker who sells critical illness insurance and get to know the difficulties you may face. And more positively, how you can solve them.

Home Loans- a Fillip to Your Desire to Rise on Property Ladder

When Mr. Wilson, your colleague at office, shifted to the posh London locality, you were taken for a shock. How could Mr. Wilson manage to buy a home with his paltry income when you still had to make do in your two-room apartment? You are not necessarily jealous but surprised at the turn of events. Had you been aware of the uses of home loan, the event would not have been as jolting as it is now.
It is true that many of the people are not aware of home loans. In addition, those who are aware of home loans have drawn several misconceptions regarding their use. This has deprived a majority of the people of home loans and thus deprived them of opportunities to boost their standard of living by shifting to a better house in a better locality.

A Home loans is primarily a mortgage. The most important purpose to which a home loan is put to is buying or constructing a home, which corresponds to the function of a mortgage, i.e. buying or constructing home. There are other uses too that a home loan can be put to. For these uses, the home loan becomes similar to a home equity loan where the equity in home backs the repayment of the loan. The traditional uses of the home loan in debt settlement, car purchase or in undertaking home improvement involves using the equity in home for providing finance to the borrowers.

Borrowers can pledge up to four family residences for a home loan. As mentioned above, the home/ homes so pledged serve the purpose of backing the loan repayments. In the normal circumstances, when home loan repayments are made regularly, the borrower can claim his home as soon as the full repayments are made. It needs to be stated at this stage that pledging the home to collateral does not mean a cessation of the rights to stay in the home. You continue to exercise the right to stay in the house as you continue with your duties to pay property tax and keep the home in a good condition.

Some of us will picture this as a situation wherein you are getting everything without having to lose anything. Though true to some extent, it is not absolutely correct. Lenders charge interest at a certain rate of interest and this is completely justifiable. Had the lender deposited or invested the amount lent, he would have got a certain amount in terms of interest. Many lenders do not charge fees for their services and a home loan would thus be the cheapest option available to borrowers.

Add to this the convenience in repayment through several monthly instalments. The monthly instalments enable the borrowers to repay the home loan through his monthly revenue. The tenants can especially advantage from the repayment method. The amount that they had been paying for the rented apartment can be channellised to the loan repayments.

For borrowers, who fear that the hike in interest rate will substantially increase their interest cost, loan providers have come up with several interest options on home loans. These interest options, though not covering the home loan borrowers for the entire term of repayment, give them relief for a particular time period. Fixed rate method of charging interest, for instance keep the interest rate stable for a maximum period of five years. Similar is the time period for capped rate method where interest is not allowed to rise beyond a certain level but allowed to fall freely.

Refinance presents another important technique of saving your hard-earned pounds from being wasted on an interest hike. As soon as you find that the interest rates are rising, you switch over to a loan provider who is offering a better rate of interest. However, you must ensure that the original loan provider does not expressly prohibit prepayment and refinance through a penalty clause.

When being used as a mortgage, the lender would not invest the entire amount needed to affect the purchase or construction of home. The borrower will have to put in a certain percentage of the purchase price. While this helps minimise the risk on the lender, he would reward this with a better-term home loan deal.

Home loan comes as an important finance method for those who are aspiring to go up in the property ladder. The ability to use the home loan amount for uses other than buying or constructing house makes home loans extra advantageous.

Loan borrowing is like once in a life time decision and much is at stake. It is indeed not a good thing that many people are misguided into taking loans that are not appropriate to their financial situation. This leads to many allied misgivings. As a financial consultant the only driving force of Ann Gibson is to provide proper knowledge. Because knowledge in respect to loan borrowing is power and exudes financial benefits.He works for mortgage web site cheapest mortgage uk.To find a cheapest mortgage,adverse credit mortgage,residential mortgage that best suits your need please visit the Finance Choices mortgage page.

Home a Loan

The number of homeowners taking out secured loans is set to slow down over the next five years according to analysts at Datamonitor. Over the past five years the market for secured loans has increased by over 50%, however predictions indicate that loans secured against property will only increase at a rate of 5.3% a year up to 2009. Last year, £32.6bn was borrowed by homeowners secured against the value of their property but according to Datamonitor this will rise to £35.4bn a year by 2009. Datamonitor stated that the slowing demand for loans reflected a public perception of an ongoing "soft landing" for the UK housing market. Maya Imberg of Datamonitor said ?The rapid growth rates the secured lending market has enjoyed over the last five years are set to cool?

The slowing in house price inflation that has been experienced over the past few months is seen by analysts to have discouraged homeowners from taking out loans secured against the increased value of their homes. Secured loans are normally seen as a sensible way to borrow for certain expensive items, such as home improvements, due to the higher borrowing limits and cheaper interest rates that are generally charged compared with an unsecured loan.


In the past it has been common to see that while the value of homes has risen, many families have increased their mortgage borrowing to release money tied up in the property, to pay off other debts or make expensive purchases. This mortgage equity withdrawal generated approximately £150 billion for homeowners? between 2001 and 2004. The recent perceptions that a return to the risks of negative equity occurring as a result of buyers needing to obtain increasingly large initial mortgages to purchase property combined with the slowing down in house prices, has caused many to be more cautious in their borrowing.


In July 2005, the total UK personal debt stood at £1,114 billion and has been spiraling out of control at a rate of £1m every four minutes. The number of bankruptcy applications and home repossessions is also on the increase.


According to mortgage-arrears counselors White Horse Mortgage Services, the main reasons for people falling behind on their loan repayment include:

• Absorbing: a reduced income such as loss of overtime 26%


• Financial mismanagement: 25%


• Redundancy and unemployment: 14%


• Accident, sickness or injury: 12%


• Relationship breakdown: 7%


• Over-indebtedness: 5%


• Others: 11%

UK website moneynet has evolved its range of services to integrate the societal changes in debt management, by bringing out a price comparison service for debt consolidation loans, as part of its loan awareness campaign. Whilst moneynet offers a comprehensive loans guide, moneyfacts has also taken account of consumer behaviour and concern, with a dedicated loans glossary. In the US, lowermybills provides a loan price comparison service.

General Loan Tips

Getting a loan doesn?t have to be a stressful procedure, providing you have done your homework, and know exactly what it is you want! I have compiled some tips and ideas about what to look for when searching for a loan! Many people when they look at a loan, they see it as a whole and it appears very scary and confusing?but if you look at it broken down into it?s sections, then you?ll see it?s pretty simple.
In it?s basics, a loan can vary according to the amount you need to borrow; the interest rate and whether or not it?s variable or fixed; the term time of the loan and if there are any deposits required. There also some hidden charges involved which can bump your loan cost up i.e. bank charges, broker fees, prepayment and insurance fees etc. Basically, your buying money for more than it actually costing the lender; so they are making a profit!

Never only consider the interest rate as a judgment of how much the loan is going to cost you; but with the introduction of the APR rate, all other fees are included. When shopping for a loan always compare the APR rates. Brokers make their money by adding in all these hidden fees so keep an eye out!

Always keep a copy of every cheque you make out for the loan you have obtained. If you ever have to call your lender regarding your loan, always take down a note of who you were speaking to in case of any future disagreements ? it can save a lot of hassle!

Always budget your cash-flow! Being sensible and realistic can help you in the long run. Keep all the receipts you receive so you can calculate what you are spending each month, and where you can cut down on your expenditures.

Most people, who plan a budget end up sticking to it for one month, then forget about it the next 9 months, and then wonder where all there money has gone! Stick to it! Make it a religion to review and update it monthly, making better additions and improvements. By cutting out all your waste expenditure, you can get the maximum amount for your loan.

Please avoid ?quicksand? loans. As you can tell by the name, they suck you into debt hell! Many features of these loan types include short term periods, high upfront fees, massive payments and high late fees! They can seriously damage your financial situation. . Beware of prepayment penalties. Many 'no fee' credit lines have a pre-payment penalty. There is no need to agree get a loan which contains any significant prepayment penalty, if you have good credit. One of the smartest things someone can do with a loan is to prepay it.

Business loan tips

If you?re a business investor wanting to borrow a small business loan, then it is adamant that you have to think like the lender. By doing this, you can easily get that loan you need to boost your business! Apart from thinking like the lender, you need to brush up on your negotiation skills if you haven?t already done so. You need to know all the questions a lender will ask, so you can have the answers right there and then. Have your entire plans i.e. current and future business plans ready to present. Organisation is extremely important. If you appear disorganised, what impression will that give the lender of your business? One of the first things a lender will want to know when applying for a loan is your specific request; is what your planning coherent with bank policies and guidelines, and legal! The more specific you are, the better your chances. It also speeds up the initial process. Once the specific reason for the loan is sorted, the lender will look at the reasons that have caused you to apply for a loan. The lender has to make sure that any problems with the business have not caused the need for loan i.e. the investors need to meet payroll or to pay accounts payable. The businesses track record will also be examined thoroughly, to find any glitches that may cause concern. A lender will prefer if the need for a loan was a predicted and calculated procedure, rather than a surprise. If you have predicted this need for a loan, then it will show you are prepared for the future and will cope easier. The less risk for the lender the better! It happens often that an investor will not have a clear idea what has produced the requirement to borrow funds, and increases the risk on the lenders side of the game Repayment Options The lender will take at look at your businesses cash-flow management system to find the ideal repayment options and sources available, and will analyze your ability to repay the loan using complicated ratio and trend analysis. With all of this in mind, the banker drafts a summary of the strengths and weaknesses of the credit request. Structure of the Loan One thing many investors do wrong is ask right away how long they get the cash for, and what is the best interest rate for me? It?s only after the business and management review processes are finished does the lender begin to think of the loan structure! This is why you need to think like a lender, so you don?t make these simple mistakes. The lender is only trying to minimize the amount of risk, and you have to understand that in order to get a loan. Business investors should never only look at a loans interest rate. There are usually many other fees involved when obtaining a loan i.e. bank fees, deposit requirements and other hidden charges that can cost you a bomb! In the end, a lender will require the borrower to keep the lender informed of the businesses performance on a monthly basis as a set agreement. Using negotiation tactics, a business investor can negotiate certain criteria of the loan structure.

Beware The Hidden Costs of Refinancing

With so many homeowners refinancing their mortgages it is tempting to jump on the bandwagon, especially with the current low interest rates and appealing offers that are popping up all over the place. While in many situations refinancing can be a wise choice, it is important to note that it is not without its own costs.
Some refinance companies charge an application fee to begin the application and refinance process. This is an upfront cost that is never rolled into the new loan amount and must come out of your personal funds. There are lenders who do not charge application fees, and some of the lenders who do often run promotions where the application fee is waived.

You might remember when you bought your home and took out your mortgage, there were costs and fees involved that you had to pay. When you refinance, those same fees and costs must be paid all over again, though they can sometimes be rolled into the new mortgage. If you don?t think that you are paying for things like settlement costs and points, think again.

Even if you don?t have to bring cash to closing, the lender has probably added these costs into the term of your loan. Be sure to check and see exactly how much they are charging you and how much money for these expenses is being rolled into your new mortgage balance. To have a lower monthly payment, you are going to wind up paying more points. To pay lower points you are going to need to make a higher monthly payment.

Another possible cost that you have to be aware of when you are considering refinancing is whether or not you have an early payoff penalty on your current mortgage. Sometimes these fees can be steep, making it pointless to refinance if the fees exceed the amount you will be saving by refinancing in the first place.

While there are costs involved with refinancing, in the majority of cases, it still pays off in the long run. Refinancing can save a homeowner tens of thousands of dollars - a rather large sum compared to the amount spent on refinancing.

Term Life And Whole Life Insurance

Which type of policy is best for you, cheap term life insurance or whole life insurance? The answer depends on several factors, including:
Your Needs. If you need coverage only until your children graduate from college, for example, you might be better off with a term life policy.

Cash-value insurance is better suited for long term needs, such as planning estate taxes and providing lifetime security for your spouse. Some term policies cannot be renewed past age 70 or 80 and can become costly to renew as you approach that age.

The Cost. If term life insurance is more suited to your budget and you want life time coverage, consider a term life policy which can be converted into a whole life policy. Then you can convert the policy whenever your cash flow or needs dictate. You can also purchase a combination of term life and whole life insurance and gradually shift into whole life insurance over time.

Your Savings and Investment Goals. Whole life insurance can be a good long term investment vehicle, especially because the cash value has the potential to grow tax-deferred. Should you no longer need the insurance but want some extra cash, you may surrender the policy and collect the accumulated cash value. Be sure to discuss the tax consequences with your tax advisor first.

As an alternative, you could purchase term life insurance and invest what you save on premiums on your own. Compare the returns you can expect, and remember to take taxes into consideration if you plan to select taxable investments.

So, Should I Buy Term Life or Whole Life Insurance? Term life and whole life insurance both have advantages including immediate family protection. Deciding which type of policy and which features are right for you takes careful consideration and, most times, a comprehensible look at your financial plan. To discuss your life insurance needs and financial requirements, contact your financial professional.

Visit the Finance Choices Life Insurance Guide for more information