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• Borrowers Less Willing To 'Stretch Themselves Financially'
  Homeowners are coming under increased financial pressure, new figures indicate.
  
  According to a study released by the Council of Mortgage Lenders (CML), payments made on mortgage interest over the course of October reached the highest peak recorded for more than 15 years. During the month, first-time buyers contributed just over a fifth (20.6 per cent) of their income towards mortgages, a slight increase from the 20.4 per cent noted in September and the uppermost point since 1991.
  
  Meanwhile, consumers who are already on the housing ladder are paying 17.6 per cent of their salary, the largest proportion paid since 1992. As a result of making premium payments into mortgages, it could be possible that homeowners are experiencing problems in meeting other demands on their finances, such as utility bills, personal loans and credit card invoices.
  
  The CML also pointed out that lending "remained strong" during the course of October, accounting for 33.5 billion pounds - a rise from 30.6 billion pouns during the same month in 2006. Further research from the firm indicated that those looking to take their first steps on to the housing ladder borrowed an average of 3.36 times their income in October, a fall from the 3.38 in September.
  
  Existing homeowners, meanwhile, borrowed 3.02 times their salary - a figure unchanged for two months now. However, with the council stating that the majority of this lending was approved before the Northern Rock crisis and global credit crunch took full effect, it was suggested that borrowing via loans is set to be "more subdued".
  
  Commenting on the data, Michael Coogan, director general for the CML, said: "October is the last month we expect lending volumes to be higher than a year ago as lenders and borrowers will behave more cautiously in an uncertain and slowing market environment.
  
  Lenders have already responded to the credit squeeze by tightening lending criteria and increasing some loan costs. And looking ahead, any uncertainty in the housing market may mean that borrowers are less willing to stretch themselves financially. However, overall, in the coming months we expect the lending figures to be driven more by supply factors rather than lower consumer demand."
  
  He added that those consumers coming to the end of their fixed-rate mortgage deals during the early stages of 2008 may well see an increase in their monthly repayments. However, Mr Coogan advised that the "potential impact" that this may have could be offset by the Bank of England's decision to lower the base rate earlier this month and predictions of future cuts. In turn, this may see homeowners manage to make loan payments and service other financial demands with greater ease than was originally anticipated.
  
  Homeowners concerned about pressure on their ability to make mortgage repayments may wish to consider applying for a cheap debt consolidation loan. In taking out a consolidation loan, borrowers may be able to pay off numerous debts quickly and so free up more disposable income each month. A debt consolidation loan may be especially advisable for residents from Suffolk.
  
  Figures from the Ministry of Justice indicated that the level of bankruptcies in the county increased by 13 per cent during the three months between July and September, in comparison to the preceding quarter. However, those who are wishing to reduce pressure on their spending but are looking to avoid the damage to credit files that bankruptcy can bring may find that a consolidation loan is for them.
  

  About the Author

  Steve Smith writes for 1 stop finance shop where visitors can apply for cheap secured loans and also focuses on quick personal loans and poor credit loans for UK residents.

  Article Source:Content for Reprint

• How To Choose a Debt Consolidation Company
  As often as we get requests to open new credit card accounts, there are an equal number of debt consolidation companies that insist they have the best plan for you at the lowest rates with the best customer service. When you think of consolidation at such a difficult financial time, it almost seems like a debt consolidation company can save your life.
  
  Part of a good debt consolidation management plan should include how to find the right debt consolidation company to help you manage this process effectively. There are a few things that you can do to make sure you are with a company that can truly make your situation better. There are also a variety of online and print resources that can be used without any cost to you. With a little bit of time and education, there are things you can do on your own that a debt consolidation company could offer you.
  
  Beware of the Easy To Fix Messages. We have all seen these ads online or in the mail: "We can solve your debt problem in just one click!" Or maybe this one: "We can help you cut your payment in half." Whatever the quick promises offer, they can be a tempting marketing piece offered to people who may also be vulnerable and having financial issues with their debt.
  
  The worst debt consolidation decisions you can make involve getting yourself into more debt by taking out yet another loan. Hard money loans can be a troubling option for people who are already a huge credit risk. This often means much higher payments, higher interest rates and over time you will certainly end up paying much more than the original debt. Also be wary of any debt consolidation companies that offer a promise to take care of everything. Nothing is that easy, and you actually pay them a small percentage each month which goes to them for their services, and not towards your debt.
  
  By passing on your payment to the creditors, the debt consolidation company receives a rebate and you pay for this overall reduction in your debt. It is important to ask yourself if this isn't the same thing you could do yourself, make your own negotiations for payment options and with a little research, you can learn which debt to pay off first. Many debt consolidation companies can also make late payments or even miss payments which in turn continues to add to the already bad credit score. So, if you do decide to go with a debt consolidation company, ask about their rates first, and see how much they can knock off your debt bill right at the start. Also, it doesn't hurt to ask around. Word of mouth is often the best source of information, much better than an ad in the Yellow Pages. Ask people if they can recommend a good debt consolidation company.
  
  Let's take the subject of credit cards as a comparison. We all would love to be able to transfer the balance of our credit card to another one with a lower interest rate. What the credit card issuers are not telling you is that the lower interest rate only lasts a few months and then you pay the normal interest rate or often even higher once the opening offer is up. This forces you to switch cards yet again, which is okay as long as you remember to do it. Otherwise the charges are piled on again. Eventually, if you are not careful, you are trapped into credit card debt with high interest payments and even more debt than you would have incurred by leaving it as it was in the first place.
  
  So it is with debt consolidation companies; they are not all created equal. So be careful when you sign up. Make sure they offer you choice and flexibility, and that their staff are all qualified insolvency practitioners, not just loan salesmen.
  

  About the Author

  Gordon Goodfellow runs consumer websites which add value. His debt consolidation site offers a wide range of services and options to those with debt. His associate site offers debt consolidation company advice in the United States.

  Article Source:Content for Reprint

• Advice for People With Debt Woes
  In our endeavor to meet our financial obligations many of us run into debt. Often seeing the number of loan opportunities and credit facilities, we tend to take them up without a thought. As a consequence, many of us are left with multiple loans that have to be paid.
  
  IS TAKING DEBTS BAD?
  Being in debt is not a bad thing by itself. But not being able to pay places you in a bad