Category: Banking

There may be times when finance is needed quickly and luckily we are living in a generation whereby access to short-term funding through online loans is available pretty much everywhere. Although it could be argued the availability of unsecured finance serves to benefit those people who need to access short-term funding, that does come with it a multitude of risks which one must take into consideration and balance against the benefits of having money made available so easily and at any time of the day or night.
so easily

In terms of applying for loans it really could not be any easier in 2019 to find a suitable creditor to lend you the money needed. From the millions of websites you will find online many of whom will promise you the earth in terms of speed of delivery of the funding flexibility repayments of any finance borrowed, to the daytime TV adverts that populate the British mainstream media, in terms of having access to unsecured loans put simply, could not be an easier. need the short term loan?

But Are Loans Necessary?

Although there are so many different companies out there vying to get your attention and broadcasting the plethora of benefits they are able to provide for those people who need to borrow money, they is a framework need to apply to your own lending values before submitting your application. The first thing to consider is, are you able to repay the money that you are looking to borrow. Although this sounds obvious many people do not realise that the short-term gain of accessing a large chunk of money is clearly outweighed with the ramifications of regular repayments can often last for many years. Whilst the flatscreen TV clearly looked amazing online and you believed would look a similarly amazing in the corner of your lounge, to the repayments of hundred and £50 per month for five years really equate to the enjoyment that you will get from watching repeated episodes of homes under the hammer.

Stop and Think!

The subject of unsecured lending is something that we will be exploring in more detail as we develop SAU Money will look to provide a different outlook on people’s values and how this links into committing to borrowing money. However, the most important thing to consider and hopefully take away from this post is to really stop and think prior to submitting any applications for loans and ask yourself is what you need really worth the sacrifice of having to repay money over several months or years.

There can be lots of risks to consider when looking at taking on credit, particularly with the current climate of unstable UK politics.

Post Brexit Credit

With a clear sense of disillusionment amongst residents of the United Kingdom in relation to the political climate this could ultimately lead in a loss of faith in the financial sector which would, in turn lead to a reduction in the number of loan applications being made. There is already a heightened sense of fear across the United Kingdom due to the uncertainty of what may happen post Bexit. What impact does this have on the lending arena and how is it this would have an impact on peoples submitting applications for credit? The answer is quite simple really; research would suggest that due to the uncertainty people are holding onto their assets, austerity measures are being implemented within households and there is therefore a lack of risk from the average UK household certainly when it comes to applying for unsecured lending.

Loan Market Destabilisation

Where does this leave the lenders one may ask. Well, there is still a plethora of short-term and long-term unsecured and secured lending options available and indeed this will always be the case both pre-and post Bexit. The only real implication on either secured or unsecured loan applications will be individuals uncertainty on where the political landscape will be come October 2019. If a deal can be secured and this is what political commentators have predicted will be the likely outcome, and it could be argued financial sector will remain largely unaffected. If however were to leave Europe without a deal this could potentially destabilise the markets, interest rates could rise on mortgages and the once solid credit rating held by the United Kingdom could fall which could impact on lending between nations.

UK Credit Ratings

Although this is a worrying time, one must always hold onto the fact that there are many other countries who are not part of the European Union and who function perfectly well. He continued to have stable lending sectors and have all been able to maintain outstanding credit ratings, Norway being a prime example of this. With regards to financial advice for any residents of the United Kingdom who are considering taking on higher levels of lending it may be advisable to wait until the outcome of Brexit to ensure certainty around what potential interest rates will be applied across the board