| 6 Million Brits Consolidating Their Loans
The preferred method of debt consolidation in the UK is where unsecured personal loans are combined into one loan with a lower monthly payment. While this is a positive move in the short term, it can be fiscally devastating over the long-term if done in the wrong way. Unsecured personal loans are the preferred method of consolidating loans. The interest rate is normally lower than interest being charged on credit cards and store cards. Research from uSwitch.com revealed that a number of Brits who consolidate their loans continue to use their credit cards and store cards to create further debt. The number of UK consumers who apply for personal loans that are higher than the amount they need to consolidate their loans are using the extra money, not for wealth generating, but to maintain a higher lifestyle.
Quarter point hike is speculated next month
/24-7PressRelease/ - LONDON, UK, March 17, 2007 - According to financial analysts, the Bank of England has not raised the base rates this time, but it could make the hike in the month of April. There is a prediction that a quarter point hike can be there in the base rate. The Bank of England has not raised the interest rates in spite of the booming economy, rising house prices, and the inflation being above the target. The analysts expect that the interest rates may go up to 5.5 %, and it may again fall down from the fourth quarter of 2007. If there is a hike in the interest rates, then the personal loan borrowers will have to face the heat. But, even if there is a hike in the next month, the borrowers don't have to worry as they can expect a relief in the interest rates by the end of this year.
RBI rate hike makes car loans expensive
CHENNAI: With RBI hiking rates, your dream car may have become more expensive. Car loan lenders have jacked up interest rates on loans by anything between 75 to 100 basis points. The increase would mean a Rs 50 increase a month for a five year loan which has a daily rest basis.
Direct selling agents (DSAs) of ICICI Bank told TOI that they have received a communique from the bank about the hike effective from Monday.
"We used to lend at rack rates of 15% per annum, we are now been told that the new rates will be 16% effective from Monday," officials said. Rack rates are those which are inclusive of DSA commissions. For instance, the end consumer price of a Kotak Mahindra loan was 13.25% when the rack rate was 15.75%.
Sumit Bali, CEO of Kotak Mahindra Prime, said: "Our new rates will be decided on Wednesday.
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