You have probably spent the last year doing all you can to help solve your secured loan problems – but if you want to be successful you need to make another New Year’s resolution to once again work hard at saving and clearing debt.

But too many people think their problems will just go away now they have spent a year being financially sensible – Gocompare.com says that while money matters topped 60% of peoples’ resolution lists last year, only 37% will resolve to sort out their finances and pay off debts in 2010.

Lee Griffin, business development director at Gocompare.com says: “The credit crunch ensured that everyone was thinking about money this time last year. It gave people a jolt and got us thinking about how we could save money. I doubt very much that everybody has got their finances in order, so resolving to cut outgoings and shop around more are still likely to be good resolutions this year too.”

So people who have debt problems need to persevere and make some more promises to themselves for the next 12 months. New resolutions could include saving money on outgoings, getting out of debt or reducing loan and credit card costs, putting more into a savings account or even shopping around for the best financial products like insurance and mortgages.

The key to getting out of debt is perseverance. But we all know reducing debt is tough, so get some help in making your resolutions stick. Talk to a professional financial adviser about putting together a new 2010 plan of action – a good plan alongside some professional advice can go a long way in making sure your 2010 financial resolutions work.

SOURCE: Gocompare.com, 30/12/09

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Too many people have battled with debt without taking stock and seeking out some professional loan advice.

In fact, over a quarter of householders in the UK are suffering mental anguish and depression due to housing cost worries, with over two million households finding meeting housing costs a constant struggle, 400,000 of whom are specifically falling behind with rent and mortgage payments, according to Co-Operative Insurance. 

And with the festive season now upon us, households will face increased financial pressures with additional seasonal costs contributing to householders money worries. People will be tempted to pile on debt and take on short-term solutions to get by into the new year. But this will only increase problems later on – debt needs to be dealt with professionally and responsibly, with a mind to long-term improvement.

James Hillon, head of home insurance at Co-operative Insurance says there are still many families, couples and individuals who are at risk of repossession or eviction around the UK particularly at Christmas – if debt is left to languish, your home will be at risk.

Don’t struggle on, week in week out with debts and risk losing your home. 2010 needn’t be like 2009 – talk to a mortgage professional about your loan and mortgage problems. They might be able to solve all of them, but they can go far in helping you get on the right track and can make sure you have a much better chance of holding onto your home next year.

SOURCE: CIS, 03/12/09

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Most Brits still take the view that once they reach retirement, their home will provide for them – although this might be the case for some, it is better to err on the side of caution and ask a financial adviser about your long-term financial potential.

According to a report by LV=, the over-50s homeowners they surveyed believed that an average of £27,250 has been wiped off the value of their homes, when in fact over-50s homeowners have lost £80bn overall in property value due to recent housing market falls.

This is a concern when the insurer says 1.3 million people still plan to use their property value to help provide retirement income. Only 2% say have been turned off the idea of using their home to fund retirement, while a further 11% plan to take advice on unlocking the value of their home before they retire.

The new research also highlights the impact of the long-running house price boom on pension savings behaviour among over-50s homeowners now nearing retirement – people assume their home will provide for them but as any good adviser will tell you, assumption is a dangerous thing.

One in eight people have consciously saved less into traditional pensions because of the perceived spiralling value of their home and a further 13% say they couldn’t afford to buy their own home and invest in traditional pensions, because property prices were so high.

We are all getting older, living longer and saving less – this is a bad concoction and will lead to many people being unable to do what they want to do in their later life.

However, many enterprising over-50 year olds have plans to recoup some of their lost equity and make the most of their property. One in six will make home improvements to add to the value of their house, and one in five say they will save extra money wherever they can. Nearly a third say they will simply bide their time for property prices to recover.

Vanessa Owen, head of equity release ay LV= says: “In a matter of months millions of pre-retirees have seen both their property and pension fund values battered. House prices still have some way to go before full recovery but with increases for six consecutive months now, and Brits are feeling more confident that their home can still play a big part in helping to finance their retirement.”

To find out how your home can help your retirement, and to find out what else you can do to fund your later life talk to a financial adviser. They will tell you the truth, lay out all your realistic options and do everything they can to make your retirement successful

SOURCE: LV=, 01/12/09

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Three in ten British employees are concerned about being made redundant in the next 12 months, a survey for the homelessness charity St Mungo’s revealed today – but how many of them have covered their secured loans with the right insurance products?

Not enough it seems. Since last year, there also hasn’t been a decrease in the proportion of British adults who are concerned about being forced to leave their home during the next 12 months due to falling behind on their mortgage debts, according to St. Mungo’s.

Getting into debt, especially mortgage or rent arrears, is a recognised ‘trigger’ that can lead to homelessness. Around two thirds of St Mungo’s residents in the charity’s own poll said losing their job had contributed either directly or indirectly to their becoming homeless.

People who do not cover their debts with redundancy, critical illness, income protection or life insurance face their home being taken from them if they lose their job – and as we all know, no one’s job is entirely safe in a recession.

Charles Fraser, chief executive of St. Mungo’s says: “Losing your job, and falling behind on home payments, remains the spectre at the feast for many this Christmas and into 2010.”

There is a simple way of avoiding losing your home, whatever happens to your job, and that’s by taking out some cheap, simple insurance products. Talk to your mortgage adviser about keeping your debts safe and ultimately keeping a roof over your head if you lose your job.

SOURCE: St. Mungo’s, 23/11/09

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The Financial Services Authority has finalised plans to bring secured loan lending under its wing – much like regular residential mortgages, soon secured loans will fall under the glare of the Government’s financial watchdog.

The Association of Finance Brokers says stretching regulation so as to cover second charge mortgages as well as first charge loans is a good thing for borrowers.

Robert Sinclair, director of AFB, says: “We fully support this announcement as we have long been calling for an alternative regulatory regime under FSA. In our view this will benefit brokers, lenders and consumers. We welcome the fact the Government and the regulators have listened to brokers in seeking to deliver a better environment for business and consumers.”

Brokers know secured loans – they understand how they work, who needs them and what you need to do to make the most of them. So when brokers say regulation of secured loans by the FSA is a good thing, you know it will benefit their clients – which means you.

But what will it do? Well it will make sure, first and foremost, that you are protected. Regulation by the FSA will mean that secured loan lenders and brokers must, by law, treat all their customers fairly and must also make sure that any loans are the right choice. But it will also make sure all the loans are created with the borrower in mind, it will make sure that brokers and lenders are not making too much money from you and it will make sure that you have recourse if something goes wrong.

Ask your broker about the new regulatory regime. Most good brokers, like The Mortgage Broker Limited, are already regulated by the FSA. They know how it works, they know what their job is and they know that their main remit is to make sure that you are getting hold of the best financial products possible.

SOURCE: AFB, FSA, 25/11/09

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Many people think it is the banks that are the bad guys but they are wrong – complacency is the secured mortgage borrower’s worst enemy.

You may have had a first charge and a second charge mortgage for some time now and might be paying your bills each month. For some people it might be tough, but most people manage to make ends meet at the end of the month.

But then you might be spending more on your credit cards, or you might be missing payments on things like unsecured loans or store card bills – letters pile through the door and things get missed. Things get left until a better time and some demands can be ignored.

You may wince every time you pop your credit card into the reader, but if you are given the green light by the shop you breathe a sigh of relief and forget about the state of your credit, preferring to enjoy your purchase.

You might have even moved over to your secured lender’s higher variable rate unwittingly. You might have begun to pay more each month than you previously have done and don’t even realise it – most of us have a dozen or more direct debits attached to our current accounts and let’s face it – how often do you even check your balance?

It is behavior like this that leads or debt, arrears and serious financial problems. If you are not on top of all your finances you may be amassing penalties and fines without even knowing about it. You may be sullying your credit score and making yourself black listed from future secured lending while you carry on, oblivious.

If you have a mortgage, a secured loan or any other financial responsibility you have to stay on top of things. That means regularly checking your current account, regularly checking your credit score and regularly making an assessment of your monthly budget. It means visiting your adviser regularly and allowing them to check your finances and it means always doing all you can to save each month.

Complacency is a borrower’s worst enemy. Only you can make sure your finances are as good as they can be – and if you don’t take that responsibility then it is you that will suffer in the long term.

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

it’s the hardest time of year not to spend – gifts, food, trips and drinks – but if you want to make 2010 a better year for finances, you must think of your secured loan responsibilities before you think of putting presents on the plastic.

The adverts begin sometime in August and before we get the first frost of the year the shops are covered in tinsel and glitter – Christmas is big business and they want you to get spending. But for those who simply do not have the money and have spent the year making sure they can handle their mortgages and loans, it is a stressful time. Unfortunately, many turn to the plastic and put their Christmas on credit as the pressure mounts to spend.

This is dangerous – if you have seen your house price plummet this year, faced the possibility of unemployment or have been unsuccessful with a loan attempt now is not the time to be increasing your unsecured debts.

It is difficult, but you have to think of your secured loans this Christmas before you spend on credit cards – your secured debts are much more important to maintain than spending that bit extra this Christmas. Simply, spending irresponsibly now may mean your home could be at risk next year.

If you really need some extra money, talk to a financial professional. They will be able to help you go through your 2009 finances and tell you the truth about your money – if you can get hold of additional money through sensible secured lending they will do all they can to accommodate that and if you can’t then they will help you plan your finances so you can still have a great Christmas, without putting everything at risk.

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

People are being warned to not underestimate the affect bad unsecured credit choices have on future potential secured loan decisions.

According to Confused.com, in the UK the closure of one in five credit card accounts by the provider was due to non-payment – people are getting so far into debt that the lenders are shutting the door on them – and that door can remain shut for a long time.

When you default on a credit card, you receive a black mark on your credit score. If you amass enough of those black marks the banks and building societies will simply see you as too big a risk to lend to in the future.

Joanne Garcia, head of credit cards at Confused.com says: “Credit card users in all regions need to understand how damaging it can be to miss repayments. While it may not seem like a big deal to miss a few payments here and there, credit providers – which include mortgage lenders – leave no stone unturned when it comes to checking a person’s credit worthiness. It they see a history of non-payments it makes it much more difficult to borrow money.”

A door in the face now may mean that you cannot secure a mortgage, a remortgage or a secured loan for many years to come. It takes a long time to rebuild credit scores, but you may need some sensible, safe secured credit much sooner than you can clean your black marks.

So avoid unsecured debt, and if you do have credit cards make sure they are under control. Talk to a financial professional about controlling your finances and looking to the long-term for secured success.

SOURCE: Confused.com, 18/11/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

Which? magazine has recently found that unsecured loan sharks are still alive and well and are still preying on those who should be considering secured finance only during this recession.

An undercover store card investigation by the publication has seen an indebted graduate handed £2,750 of credit on the high street, despite him having earned less than £1,000 this year.

The consumer rights body sent 21-year-old graduate James Smith to pose as a shopper in 20 of the biggest high-street stores. He bought a variety of items costing between £50 and £100 and asked whether he could get discounts by taking out a store card – in total, James was able to get £2,750 worth of credit on cards from six stores with interest rates ranging from 18.9% to 28.9%.

Although he had twelve credit checks over two days, James was still able to get credit at the end of day two. Also, in eight of the twelve shops where James applied for credit filled in the forms containing terms and conditions for him, only asked him to sign at the bottom – arguably not giving him a proper chance to read the important small print.

James Daley, editor of Which? Money, says: “No one is James’ position should be given access to £2,750 on store and credit cards in just two days, or be able to continue getting credit after so many applications have been made in such a short space of time. The question remains whether stores should be handing out credit at all.”

This case highlights that it is so easy to get credit and it is so tempting. But it also highlights the fact that too much credit without proper advice and guidance can destroy your credit score and make you a financial pariah for years.

Simply, you have to fight temptation. Unsecured debt, whether it is from a shop or a bank, is bad news. If you need credit, talk to a professional who can help you with a secured loan or a remortgage – secured debt is the only thing any borrower should be considering during the recession, regardless of temptation.

SOURCE: Which?, 18/11/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

Only 25% of people have ever checked to see if their details on their credit file are correct – all secured borrowers must go online and make sure that lenders can see the whole truth and nothing but the truth.

A survey conducted by Confused.com has found that 12% of people had gone online and found that their credit score had improved – but many more might be better off and not have a clue.

Joanne Garcia, head of credit cards at Confused.com says that with providers tightening lending criteria and rejecting many applications people are concerned that they might get a black mark on their credit score – so much so that 40% of people are now scared of credit scores. But if you never check your credit score you will never know.

Garcia says: “It is the 22 to 30 year olds who are the most concerned by the potential of a black mark on their credit score, as the financially savvy young look to the future and see problems about not only getting a credit card or loan, but also to finding a decent mortgage.”

Get savvy yourself and get checking. Your credit score is what lenders see when they consider you for a borrower. If you have a black mark, or even worse if you have a mistake on the score, you could be turned down for credit.

Lenders are still saying no a lot more than they are saying yes, so you need to stand out from the rest. That means sorting out your finances and it means being on top of your credit score. And remember – if you can keep a clean sheet now, even if you cannot get credit you are going to be at the front of the queue for loans when things improve.

SOURCE: Confused.com, 11/11/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.