Beware of loan traps

I don’t think that anyone of us would knowingly fall into a loan trap. But, here lies a difference between a well-informed borrower and an average one. A borrower who has up-to-date information on the UK loan market would never fall for a loan that may later on turn into a loan trap.

Yes, I am talking about hidden charges, loan costs and penalties, PPI (payment protection) charges, etc. Well, do not worry if it’s a new thing to you. I am spreading out this information only for people like you who are oblivious of these things. As a finance professional, I can tell you that many lenders come up with hidden charges once you have signed the loan agreement. Lenders adopt many tactics so that they can charge you more money than you think is due from your side. Sometimes, in case of PPIs, people don’t even realise that they are paying for the services that they never intended to take. Similarly, an early repayment penalty is another way of inflating your loan costs later on. So, be careful about such penalties when taking out secured loans.

Always go through the papers and see if there exists any such clause in the loan agreement. Similarly, arrangement fees, valuation fees (in case of secured loans), etc., can raise the total cost of a loan. You should be aware of these clauses before you finally close the deal with your lender.

Is consolidating loans with secured loans a good idea?

The promise is a good one--you pay off all your high interest bills, such as credit cards, for a lower monthly payment than you pay now. However, consumers need to be wary, as the payment terms may be for much longer than anticipated, which leads to years of interest payments. Consumers need to ensure they are not being taken for a ride. Another serious issue with debt consolidation is a false sense of security. Once multiple debts are consolidated into one, it can seem as though the debt has been eliminated, which is far from the truth. It is estimated that most people who take out a consolidation loan actually end up in more debt; that paid-off credit card is just too tempting.
Most personal loans are debt programs used to pay off high interest credit cards, with car payments and home improvements following. Nearly one in three loans taken out in the UK in 2005 will be to consolidate existing debt.

When considering a personal loan, consumers need to shop around for the best rates. A low rate could make a significant impact on the amount paid in interest over time--literally thousands of pounds. With the popularity of this type of loan, however, competitive rates are available, and shopping around can be worth the time and energy. Shopping around also helps customers find a loan that best fits their needs.

Debt consolidation loans are not "one size fits all," and as more consumers become aware of this, the better rates and terms they will be able to obtain. Some banks offer personal loans starting at 5.7 percent. Many potential loan customers erroneously believe that they have to be a current client of a bank to secure a personal loan through that institution. This is incorrect, and this belief alone leads to many customers paying too much in interest on their loans.

For example, on a £10,000 loan, consumers could save up to £2,291 in interest payments by using a market leading loan provider as opposed to a high-street bank. As a result, high street banks have approximately half of the market while offering some of the least competitive rates.
Debt consolidation loans are often secured by personal property (such as a home) with variable rates. This means that you run the risk of losing your home with a fixed or variable rate loan if you are unable to make payments. It is wise to calculate monthly payments over the length of the loan and determine if this is the best option for you. If so, careful research into all the options can be very cost effective.

Unsecured loans: Quick availability

Loans are available in varying ranges and for different purposes. Your financial needs and lenders’ policies define the type of loan that you should search for. A short term loan available without security may require you to pay a higher interest rate but it will provide a quick solution to your monetary needs. On the other hand, you may be asked to pledge your home if you want a large loan for long period like 5 to 20 years.

The changing perception of people has given rise to ‘luxury loans’. These loans refer to those borrowings whose purpose is to buy luxury items and enhance the lifestyle of the borrower. Earlier, people used to take loans only in difficult times. However, now the requirements have changed and many people borrow money only in order to raise their living standard or imitate the lifestyles maintained by social celebrities.

If you are searching for a loan that meets your expectations in urgent situations then unsecured loans are the best option. These loans require very few formalities and the documentation is also nominal. Lenders also expedite the loan processing as the loan amount involved is not very large. These loans have a limited amount to offer – upto £25,000. Even this amount is not a standard norm in the UK financial market. The loan amount depends upon individual lender and your bargaining strength.

Unsecured loans are available all across the UK. You can also apply for these loans through the Internet. High street banks, private lenders, building societies and other financial institutions sanction your loan application on merit. Unsecured loans are appropriate for short term requirements.

Borrowers having bad credit rating can apply to sub-prime lenders requesting them to give loan quotes for bad credit loans. The sub-prime lenders charge high interest rates because of the risk involved in bad credit loans.

Another Team Reverts Skin Cells!

According to Reuters, another team of researchers has successfully turned skin cells into embryonic like cells. This time it’s Dr. George Daley of Harvard Medical School and Children’s Hospital Boston and his colleagues:

WASHINGTON, Dec 23 (Reuters) - A third team of researchers has found a way to convert an ordinary skin cell into valued embryonic-like stem cells, with the potential to grow batches of cells that can be directed to form any kind of tissue.

Their study, published on Sunday in the journal Nature, shows the approach is not a rare fluke but in fact something that might make its way into everyday use.

Scientists hope they are starting an age of regenerative medicine, in which people can get tailor-made treatments for injuries, diseases such as Parkinson’s and diabetes, and in which scientists can study disease far better than before.

Of course the story wouldn’t be complete without the researcher’s insistence that embryonic stem cell research must still go forward, but it’s good news, nonetheless.

A Christmas Stem Cell Miracle

Several months ago I mentioned six year old Rylea Bartlett, blind from birth, who was treated with umbilical cord stem cells in China and now has very limited vision. This year young Rylea had a Christmas like no other:

WEBB CITY, Mo. — Rylea Barlett has had Christmas trees in her home before. But this year is different.

Rylea, a totally blind child whose vision was restored by a stem-cell transplant, can do more than feel her tree now. She can see it.

“She never paid any attention to the trees we have had before,” said her mother, Dawn Barlett. “Now, when she comes home from school, she stands in front of the tree for a couple of hours every night.

“She touches the tree, and is fascinated by the lights and ornaments.”

Her tree has been rigged to turn slowly. Different ornaments and sparkling lights pass by her as the tree turns. She touches the ornaments and describes her favorites.

“This one is a ginger-bread man,” Rylea said last week as she stood close to the tree. “This one is a star. This is one with someone’s picture in it. I like this one of the baby in the moon.”

Find out more about this sweet little girl on her website, No More Darkness. Shamefully her story has progressed no further than the local media in Joplin MO.

The Year of the Stem Cell

Yes, this year will surely go down in history as probably the most significant year for stem cell research (so far) - and it had nothing to do with creating or destroying human embryos. From Discovery News:

Dec. 26, 2007 — It was the kind of breakthrough scientists had dreamed of for decades and its promise to help cure disease appears to be fast on the way to being realized.

Researchers in November announced they were able to turn the clock back on skin cells and transform them into stem cells, the mutable building blocks of organs and tissues.

Then just earlier this month a different team announced it had cured sickle cell anemia in mice using stem cells derived from adult mouse skin…

The new technique, while far from perfected, is so promising that the man who managed to clone the world’s first sheep, Dolly, is giving up his work cloning embryos to focus on studying stem cells derived from skin cells.

“The fact that (the) introduction of a small number of proteins into adult human cells could produce cells that are equivalent to embryo stem cells takes us into an entirely new era of stem cell biology,” said Ian Wilmut, the Scottish researcher who first created a viable clone by transferring a cell nucleus into a new embryo.

One of the greatest advantages of the new technique is its simplicity: it takes just four genes to turn the skin cell back into a stem cell.

This, unlike the complex and expensive process developed by Wilmut, can be done in a standard biological lab. And skin cells are much easier to harvest than embryos.

“It’s an explosion of resources,” said Konrad Hochedlinger, of the Harvard Stem Cell Institute.

This is not a perfect system yet, to be sure. More research is needed for this method to be available for patients, but there’s no doubt that this discovery will have a major impact on the future of stem cell research.

This New Year, why not celebrate the Year of the Stem Cell with a bottle of BOGO Wine and help support this important and innovative research?

Choosing the Right Home Owners Insurance for Your Situation

Buying a home is more than just walking into a house. Not only do you want to make sure that you have the right investments set in place, but you also want to make sure that you have the right things to protect you in case something happens. Having cheap homeowners insurance is an important part of investing in real estate and into moving into a home.

With most lenders, it is required that you have home owners insurance. This is because some of the property that you will own on the real estate home is also theirs. Most home owners insurance is chosen during the final closing of your home in order to protect all of your assets as well as pieces of property that belong in the home. By finding the right home owners insurance, you will be sure to be protected against any accident or natural disaster that may happen.

Home owners insurance will be divided into a variety of categories, all which will beneficial to different situations. The best way to decide on home owners insurance is to first add in how much you own and the value of the home. You will want to make sure that you are able to cover as much as possible and are able to get returned on everything that you are able to own.

Another factor to consider with home owners insurance is the type of coverage that is offered. Some companies will have different categories according to the types of things that you own and how this relates to what you will need replaced. After you have assessed the value of everything, you will also want to add in what you know you will want covered and which category of insurance this will put you into.

Home owners insurance is one of the ways that you can ensure that your real estate and property investments stay covered. If anything happens, you will want to be assured that you have lost little to nothing in the process. Cheap homeowners insurance is one of the ways that you can keep cover with your investments and out of the damage.

Bankruptcy and Student Loans

Many people are under the impression that bankruptcy and student loans go together. When faced with outrageous prices for education it would seem that it would be an answer to many seeking relief. However, they do not mix and it is extremely difficult to have them discharged in a bankruptcy court.

Interestingly, in the 1970's it became common practice for someone to attend school and then file bankruptcy and student loans would disappear. It was a sure way to get a free education. Of course, as these cases grew, the government decided to limit the availability of this option. It became increasingly difficult to file for bankruptcy right after school. The common practice was now to wait at least seven years so the loan would be old. In order to file a person simply had to show that they had made their first payment seven years prior and that the loan was causing undue hardship. It was easy to prove the benefits of filing for bankruptcy.

In October 1998, the issue of bankruptcy and student loans again came to the forefront. The court ruled that such a case could not be filed and discharged unless three criteria were met. A person could not open a case unless they met this criterion. The first of these criteria is that you must prove to the court that you cannot keep up with your payment schedule. The second criterion is that you must prove to the court is that you are unable to pay in the future and that your financial situation is permanent. The third and final criterion is that you have made a good-faith effort to pay them back. If and only if you meet all of these criterions, may you open and file a bankruptcy and student loans case.

Even if you meet all of the requirements for opening a bankruptcy and student loans case, there is no guarantee that your loans will be discharged. It will depend on the judge that is hearing your case. Some judges will discharge some of the loans and leave you to pay part of them. Some judges will hear your case and will not discharge any of your loans. Once in awhile, a judge will take your particular case under advisement and discharge everything. This is extremely rare, but it is possible. It is not easy work to get a bankruptcy and student loans case discharged!

When you pursue your education, act responsibly and think before you apply for a student loan. Without foresight into your future, you could find yourself filing a bankruptcy and student loans case and damage the very future you have been working so hard to achieve.