Debt in the UK

Welcome to Loans & Credit Cards.Co.Uk.

Here you will find useful information about loans and credit cards offers, why and when you should use them and when you should not. You can read about financial management and why it is important to save, save, save rather than spend, spend, spend all the time.

Credit Cards should only be used as rolling credit to help you till the month end, where the full balance should be paid once you receive your salary. Credit Cards can be used for your daily usage.

• Travel - NOT HOLIDAY but to work and back
• Food & Drinks plus weekend entertainment
• Your Sundry and Daily Usage

Credit Cards should not be used for

• Expensive Digital Equipment, like huge flat screen TVs, expensive Cameras, Hifi Equipment, Leather Couches, Beds, Furniture, Shares, Short Selling, Long Selling, Forex, Online Bingo Etc. Do not use Credit Cards for bargains unless the interest paid on the borrowing is still lower than what the item cost.

  Purchases like these should ideally be made via your Savings from your Debit Card or With CASH ONLY

Personal Loans should ONLY be taken to help you invest in items that will not depreciate in value. For example

• Education
• Property

Expensive vehicles should only be purchased with loans if the vehicle is very necessary in terms of added value to your business or abosolutely required for your job. Otherwise buy an old banger for the school run and sign up for the AA Home Repair and Towing Service. If the family needs to take a long journey for a holiday, you can always rent a reliable car.

Personal Loans should NOT be used for investment in a business unless you are absolutely 100% sure the business will make a return, if it is a risky business, or a slight hint of risk, you should only use surpluss cash you have saved to invest.

• There are resources here to help you make informed decisions and also know the pitfalls of taking on too much debt. There are separate articles about people who have took on too much debt and their consequences.
• This website also provides basic accounting and financial management information to help you plan your finances.

LOANS & CREDIT CARDS are useful financial instruments, but they need to be used wisely, if you are not sure, ask your grandparents.......

The standard interest rate on UK credit card ranges anything between 8 per cent and 25 per cent. Nevertheless there are few credit cards available at a much higher rate. The cheapest credit cards are usually offered by companies which decide the charges based on your credit standing. They judge your credit standing looking at your financial history.

UK credit cards are one of the most useful and practical financela instruments if you’re disciplined and can handle them sensibly. However, they are the most expensive form of legal borrowing.

• UK Credit Card debt is extimated to be approximate £1.5 billion pounds.
• Those paying the miminum a month are expected to take 30 years to pay their debt back.

There are currently over 200 significant separate financial organizations supplying mortgages and loans to house buyers in Britain. The major lenders include building societies, banks, specialized mortgage corporations, insurance companies, and pension funds. Over the years, the share of the new mortgage loans market held by building societies has declined. Between 1977 and 1987, it fell drastically from 96% to 66% while that of banks and other institutions rose from 3% to 36%. The banks and other institutions that made major inroads into the mortgage market during this period were helped by such factors as:

• Relative managerial efficiency
• Advanced technology
• Organizational capabilities & expertise in marketing
• Extensive branch networks
• Capacities to tap cheaper international sources of funds for lending