| RedSofa launches THINK campaign.
Property investment company RedSofa have launched their latest marketing campaign - THINK. This campaign has been designed to highlight the growing trend of homeowners taking out further debt in order to prevent themselves falling into arrears with their existing monthly financial commitments.
[UKPRwire, Sat Mar 17 2007] Taking out further debt, which is usually secured against their home, is not a solution which is recommended, as this can cause further problems, as homeowners struggle to afford the increased monthly payments. By increasing the debt, homeowners just increase their risk of defaulting, and ultimately are more exposed to potentially having their home repossessed.
Research from Moneysupermarket.com has revealed that 28% of UK consumers have consolidated their debt by taking out a personal loan, 8.5 million of the 13 million consumers who consolidated in this way actually continued to borrow further through either their overdraft or additional loans.
Personal finances getting 'tighter'
The succession of interest rate rises is pushing people's incomes and what they can afford, according to new figures released from the British Bankers' Association (BBA).The number of mortgage approvals dipped slightly in February, most likely after January's shock interest rate rise helped push many people to the edge of what their finances can afford.If managing your debt is proving a problem then taking a secured loan or homeowner loan could help you cut your monthly payments."[Property] demand appears to be moderating however, as the monthly number of house purchase approvals was lower than a year earlier for the third month running and net lending was below trend in February," said David Dooks, BBA director of statistics."Reflecting tighter conditions for personal disposable income, consumer credit continues to be weak," he added.Credit card lending was also weaker in February, suggesting the higher interest rates are encouraging people to move their debt onto a more affordable secured loan or homeowner loan.© Adfero Ltd .
Avoid interest rate 'roulette'
Consumers are being urged to take measures to ensure they are able to cope with any further rises in the Bank of England base rate.New research from Legal & General shows that in the last 30 years the bank's interest rate has increased 58 times, on each occasion putting homeowners and borrowers under pressure.The rising cost of borrowing makes expensive forms of debt, such as credit cards, an even less attractive personal finance option."Borrowers will be waiting to see if they are going to be in the red or the black in the base rate roulette next week," said Stephen Smith from Legal & General."Rates are still at a relatively low level compared to 70s and 80s, and many people would struggle with today's debts at yesterday's prices. Whilst the boom and bust has flattened out since the turn of the millennium, borrowers are still facing a probable hike in rates in the near future," he added.Consumers who are feeling the strain from the three successive rate rises – and who are worried about the likely prospect of further rises – can use a secured loan or homeowner loan to help cut their monthly outgoings.© Adfero Ltd .
Home buyers get yet another jolt from HDFC
MUMBAI: The country's largest housing finance company HDFC has raised lending rates by 75 basis points for new customers, while interest rates for existing customers is up 50 bps. HDFC's rates after the hike are still cheaper than its nearest rival ICICI Bank which announced a rate hike on Saturday. HDFC's floating rate loan for new customers is now pegged at 11.25%, while customers borrowing at a fixed rate will be charged 13.25%. Its prime lending rate (PLR) has now been revised to 14.25%, up from 13.5%. Meanwhile, HDFC Bank and UTI Bank have both raised PLR from 14% to 15% on Monday. Last week, ICICI Bank raised its benchmark advance rate to 15.75%, while Yes Bank raised its PLR to 14.75%. State-owned banks are yet to take a view on their lending rates. A number of banks are considering to raise their lending rates after the Reserve Bank of India (RBI) announced an increase in cash reserve ratio, repo rate and a reduction on interest paid on CRR.
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