London, England (PRWEB) June 18, 2010
As Homeowners and consumers across the UK face increasing redundancy, repossessions, and increased rejection of loan applications, bad credit loans from http://www.loansbadcredit.org.uk offer a temporary solution.
Bad credit loans are especially designed to help those with lower credit scores, weak income-to-debt ratios, and bankruptcy or other detrimental financial marks on their credit history. The loans are structured in such a way that virtually anyone can get approval and be granted a loan to help pay down debt or manage monthly expenses.
These days a lack of credit in the face of a lingering recession is putting millions of consumers into a severe financial bind. According to recent news items from sources such as the Guardian and Telegraph, for example, one person in 10 in the UK is struggling to manage his or her debts and the total of all consumer debt is approximately £1,500 billion. Bank statistics reveal that consumers are using their credit cards - a strategy that got many of them in trouble in the first place - to pay bills. Credit card debt rose in February, for example, by £374 million, and borrowing through overdrafts has also surged to the highest levels seen in years.
But these kinds of solutions are typically the most expensive, which is why debt consolidation through one single loan is often recommended as a smarter alternative. People can use a bad credit loan, for instance, to pay off credit card debt all at once and simplify their finances.
Meanwhile, millions of consumers needing advice about managing their credit card debt are losing out because of a lack of proper management of government programs to assist them. For six years the effectiveness of various debt counseling programs has not been evaluated, and this year a House of Commons public accounts committee investigating the problems concluded that many initiatives are a complete failure.
One of Britain's biggest claims-management firms has also come under scrutiny by the Ministry of Justice, which has virtually closed down Cartel Client Review, an organization believed to have had up to 35,000 clients. To make matters worse, each of those clients paid fees of as much as £495 for help getting their debts erased, and now they have no help in that regard and will likely lose the money they paid.
Interest rates are rising, which makes borrowing more expensive, and rates on smaller loans have more than doubled in recent years - rising by about 130 percent. Credit card companies are also expected to stop the practice of sending out cash advance cheques to their customers. MBNA says that it no longer sends out new promotional cheques, standard credit card cheques, and replacement cheques. Consumers who were relying on that rather expensive method of borrowing emergency cash to help them juggle their finances will have to do without from now on, and the cheques are expected to be banned as part of the Financial Services Bill that will go into effect later this year.
As these factors continue to challenge ordinary consumers and homeowners, loans for bad credit offer a simple way out to those who have damaged credit and are in need of a fast solution to their cash-crunch problems.