The majority of British people from the lower and lower middle class feel highly stressed in managing the living expenses because of very low rise in salaries in comparison to inflation rate. The financial condition of common British person is getting tight year after year as the increasing numbers of people with bad credit score indicate. Feeling difficulty in managing the routine expenses, people shift their focus on curtailing the monthly bills payment; it creates red marks on their credit score card. Low credit score shuns the scope of getting the required financial help from the regular banks. Mortgaging some asset or making someone guarantor for a small amount loan doesn’t seem feasible; therefore, the only way left to meet out the cash requirement is to approach the direct lending agency dealing in no guarantor bad credit loans.
Mirror Image of Bad Credit Loans in the UK:
A drop in unsecured bad credit personal loans from 6.8% in March 2017 to 2.4% in March 2018 at mainstream regular banks reflects the increasing importance of direct lenders. Annual growth of bad credit unsecured personal credit by mainstream banks in the UK during March 2017 – March 2018 shows a high-end significant decline; it was the outcome of fresh guidelines of finance department to secure the credits better because Govt. is more concerned for the mounting up unpaid credits. Any unsecured lending involves the risk especially in the current financial conditions pertaining to common British household. The chances of non-payment are higher than before because of a reshuffle in the job sector and unpredicted condition in the business sector.
Low Saving Means Higher Demand Of Personal Loan:
The earnings of people are dropping or are same while the living cost is going high. People are more concerned for their better future after Brexit; even then, additional 340,000 British households did no saving in one year; the total numbers of such people crossed the figure 9.79 million in 2017. The numbers of UK households with no cash saving increased by 3.5% in 2017. The rise in the UK people with no saving indicates their dependence on everyday credit. Without having some savings buffer, the majority of British households highly dependent upon the direct lenders providing instant decision same day with no guarantor bad credit loan. A report reveals that almost 71% of British households (an increase of about 800,000), to say about 19.3 million, have saving account balance less than £10,000. It means that the majority of UK households require external financial help to make big purchases like a car, house or to do a home renovation like necessary tasks or even to go holiday tour. Getting financial support from family members or friends used to be a choice years before but now UK people prefer to pay a higher interest rate on the debt from direct lending agency.
Is It Easy To Manage No Guarantor Debt?
True, availing the no guarantor poor credit loan from a direct lending agency is a better choice if you don’t want to share your financial woes to your family members or friends; however, it poses a serious challenge to manage all the monthly installments organizations the time. The statistics reveal that majority of borrowers repay the loan on the time. No one wants to pay the interest rate and late payment fee for an additional period. The other concern for paying the loan on time is that British borrowers don’t want to lose the prospects of future borrowing. So, how can you manage to pay your unsecured no guarantor loan on the time?
Go through these eight tips to pay unsecured loan without feeling financial stress:
1. Revaluate the need- ‘is it unavoidable?’
2. Optimize the requirement of the loan amount
3. Plan for repayment on realistic and stable earning
4. Squeeze spending to save more and to pay more each month in addition to due installment
5. Choose the direct lending agency wisely with patience
6. Avoid any broker; deal with FCA authorized a direct lending agency
7. Minimize the use of a credit card
8. Plan to consolidate multiple loans to save more because you pay more by having multiple loans