| 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.
Loans - Lofty ambitions with lofts
Loft conversions can add around 100,000 to a home's value, according to Alliance & Leicester Personal Loans. Indeed, research carried out across England and Wales reveals how homeowners who add a dormer loft conversion to their house are likely to be in a win-win situation. It's cheaper than buying a bigger house, they can see the value of the property go through the roof and they could make significant savings compared to a further advance on a mortgage or a personal loan from the Big Four. Although there are regional price differences, the UK average cost of a dormer loft conversion is around 23,000 and can add 100,000 to the house's value. In London, dormer loft conversions to a three-bedroom home cost around 25,000, but could return a whopping potential profit of nearly 146,000 if the homeowner went on to sell their property.
Home loan rates set to rise further
NEW DELHI: Interest rates on loans are set to shoot up further with the Reserve Bank of India on Friday deciding to make money costlier by hiking the inter-bank short-term lending rate by 0.25% and the mandatory deposits banks are required to make with the RBI by 0.5%.
These measures are likely to hit economic growth. But, in a significant policy-turnaround statement, RBI said growth had now become a secondary concern. Controlling inflation is the central bank's top priority.
This would leave banks with no choice but to increase home loan rates by half a percentage point to 11.50%. The measure, besides affecting prospective loan seekers, will also hit those already paying home loan EMIs at floating rates. Interest rates on personal and commercial loans are also set to increase by the same amount.
The risk of co-signing your child's loan
Co-signing a loan for your child is one way to help him or her establish credit, but it also can expose you to having to repay the loan, and possibly late charges, legal fees and penalties, if he or she defaults. Let members of the Financial Planning Association of Greater Indiana help you sort out the details in today's focus on personal finance. .
|
