Payday loans worth £45m borrowed by NHS staff

It has been revealed that employees of the National Health Service collectively borrow on average a staggering £45 million in payday loans each year, according to recent statistics published in the past week. What does the data reveal? The analysis on the payday loan industry was carried out by fintech company FairQuid and based on data by CashLady, and it revealed that NHS employees made up the highest proportion of payday loan applications across the country. This equates to about 3.5% overall. The main reason that was given as to why the applicant had decided to take out a payday […]

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Nesta Challenges launches £2m in prize money to increase affordability in the lending industry

Nesta Challenges launches £2m in prize money to increase affordability in the lending industry

Nesta Challenges have recently launched the Affordable Credit Challenge, in the hopes of creating incentive for community lenders and fintech companies to partner up and develop solutions to help improve affordability within the lending industry. The funding organisation has claimed that high-cost credit loans do have “a role to play in the market” however, “too many people have been turning to these lenders […] when it has not been appropriate for their own personal situation.” Whilst community lending and other not-for-profit lenders can provide a better means of borrowing for people in particular financial situations, studies have shown that many […]

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Mis-sold customers of payday loans won’t receive full compensation

Mis-sold customers of payday loans won’t receive full compensation

After the collapse of payday loan lenders Juo Loan and Wage Day Advance, as we have previously written earlier this year, it has now been revealed that customers who were mis-sold loans will now only be partly compensated. The company that owns the two businesses, CURO Transatlantic Limited (CTL) went into administration on 25th February and appointed KPMG as its administrator. How much compensation is owed? In terms of the amount that is owed to customers who were sold a payday loan which did not meet lending standards set out by the FCA, it is estimated to be around £223 […]

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Mortgage rates fall for those with bad credit

Mortgage rates fall for those with bad credit

Are you struggling with a bad credit score, and either have a mortgage or looking at getting one? We have some good news for you! It appears in new research that the average rate for credit-impaired borrowers with a mortgage has fallen. Mortgages for those with bad credit Those who damaged their credit score – for example, getting into a cycle of debt with not being able to keep up with repayments for things such as payday loans or guarantor loans – have been well-known to typically receive much higher interest rates – and as a result, higher overall repayments, […]

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Wage Day Advance and Juo Loans collapse into administration

Wage Day Advance and Juo Loans collapse into administration

It has been recently revealed that at the end of February the company that owns payday lenders Wage Day Advance and Juo Loans, CURO Transatlantic Limited, has now gone into administration. This follows on from the huge collapse of UK payday lender Wonga, in August of last year. What has led to their collapse? The collapse of these payday lenders is similar to the reasons why Wonga ended up going bust in August 2018. Wage Day Advance had been processing thousands of compensation complaints, after being accused of having irresponsibly lent a staggering £18 million. This has been argued to have [...] Read more »
What is personal finance paralysis?

What is personal finance paralysis?

Find it difficult to make a decision about whether to apply or cancel a credit card or personal loan, or perhaps hesitate on going ahead with that mortgage application or a payday loan for bad credit , or which lender to go with in the first place? Sound all too familiar to you? Well, you may well be experiencing the common phenomena of personal finance paralysis. What is personal finance paralysis? Personal finance paralysis is pretty much self-explanatory, but to be clear, it explicitly refers to a fear of making a wrong personal finance decision. Being scared of making a bad choice […]

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Budget 2018: Zero-interest Loans

Budget 2018: Zero-interest Loans

On Monday the 29th of October, the Chancellor of the Exchequer Phillip Hammond released the budget. He explained his intentions for the budget in the House of Commons at 3:30pm, which was also live streamed on the BBC and other channels. One thing that stuck out for those in the lending industry or people who regularly seek the services of payday loans for bad credit, was the introduction of a scheme which features zero-interest loans. This scheme is to be introduced to help people overcome debt and is set to help out about 3million people across the UK who have […]

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What is Universal Credit?

What is Universal Credit?

Universal Credit is a payment which is designed to help people with their general living costs. Universal Credit is relatively new and has been introduced to replace six benefits offered by the government in one package rather than many. The following are benefits Universal Credit has replaced: Child Tax Credit Housing Benefit Income Support Income-based Jobseeker’s Allowance (JSA) Income-related Employment and Support Allowance (ESA) Working Tax Credit If you currently receive any of those benefits, you cannot claim Universal Credit at the same time as those. However, since Universal Credit is being introduced in stages, you do not have to […]

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Who is eligible for Universal Credit?

You may have heard about the introduction of Universal Credit by the UK government. Many people are expressed their state of confusion surrounding what it is and what the introduction of Universal Credit hopes to achieve. Essentially, Universal Credit is a payment which aims to help people with their general living costs. It is paid into your account monthly if in England and Wales and twice a month for some people in Scotland. How do you get Universal Credit? You may be eligible for Universal Credit if you are on a low income or if you are out of work. […]

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How Do You Become an Underwriter?

How Do You Become an Underwriter?

If you are considering a career in the world of insurance and loans, being an underwriter may be an option you are seriously looking into. What is underwriting? For clarity’s sake, an underwriter is responsible for the process of underwriting. Underwriting takes place when financial lenders are reviewing an application in order to make a final decision on whether the applicant is suitable. This they are, the underwriter will approve the loan. An underwriter could be an individual or team of people who carry out the process. These people make their decisions based on a series of checks, behaviour and […]

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