With personal debt on the rise, there is also a correlating increase in personal insolvencies along with it. Once you are in debt, it can soon get out of control so always think very carefully before borrowing money from financial lenders.

Handy Hints for sensible borrowing:

1. Decide whether you actually need to borrow money at all or if you can delay a purchase and save up for it. If you do need a loan, borrow the absolute minimum only.

2. Before choosing a lender, invest some time into comparing between all the financial lenders. Make sure you compare the Total Amount Repayable (TAR) rather than the Annual Percentage Rate (APR) for a more accurate comparison.

3. Keep the repayment term as short as you can manage, this will reduce the amount of interest you pay overall.

Read more at the First Rung site here

Over the past year the base rate has been gradually increased by the Bank of England to 5.75%, a leap of 1.25% since 2006, when it was just 4.50%. This knock-on effect has caused those companies offering financial services to increase their interest rates too, meaning higher rates for those taking out a mortgage or personal loans. Even overdrafts and credit card borrowings will now cost more to repay and it seems to be even more noticeable if you are trying for an unsecured personal loan.

From the article, The Fool says:

‘the biggest rate rises have come from Norwich Union and RAC Financial Services (up to 4% hike) and six small building societies whose loans are funded by the Co-operative Bank (up to 3% hike).

Even the most aggressive players in this market (such as Alliance & Leicester, Barclaycard, Masterloan and Northern Rock) have pushed up their rates by a fraction in order to balance their books. In most cases, these increases have hit larger loans, typically those over £5,000, which could push up the total amount repayable (TAR) on a hefty loan by £200 or more.’

Read the whole article and check out the ‘Best Buy’ tables for unsecured loans at Fool.co.uk

Money Supermarket is one of the top price comparison websites involved in offering impartial advice on all things money related. It will compare 1000′s of products in a matter of seconds. Their aim? To save you time and money and make your life a little easier.

With just one search you can find a straightforward low-down on the best deals on offer on 1000′s of money related products ranging from credit cards, insurance, mobile phones, loans and travel to name just a few. Updated on a regular basis, you can be sure you are getting up-to-the-minute information.

They compare deals on all money-related products including credit cards, personal loans and mortgages. Many insurance products ranging from home, travel and car insurance and even holidays, phones, broadband and household utility companies.

The website is easy on the eye and simple to use, so don’t make any rush decisions without checking out the deals being offered by all the major finance related industries. It could save you a bundle.

Visit the site at MoneySupermarket.com

Bad Credit, also know as Adverse Credit, indicates that someone has a poor credit rating usually from a history of defaults or arrears on previous loans, bankruptcy or CCJ’s (County Court Judgements).

This doesn’t rule them out from being able to get a personal loan, as there are plenty of companies offering to this particular it just means they may not be able to borrow as much and they will probably have to pay a much higher interest rate.

Most people borrow money nowadays to purchase a new car but whatever you need to borrow money for, whether it’s consolidation, to fund a wedding or make important home improvements there are still options out there. So if you have been turned down after applying for a loan, do not despair, there are companies out there who are more than willing to help you out.

Read more about bad credit lenders at The Thrifty Scot for some important information on what loan companies are currently offering prospective borrowers.

In the past 4 years, first-time buyers have seen a giant increase in the size of their mortgage – it has almost doubled since 2003.

From the article:

‘New figures from Abbey show to get on the property ladder new homeowners are now forced to borrow on average £130,000. This compares to the average amount of £75,000 borrowed by first-time buyers four years ago in 2003.’

It seems to be getting more and more difficult to get onto the property ladder, with many young house buyers having to rely on their parents for financial assistance.

With house prices ever increasing, so too is the amount first-time buyers have to borrow for a mortgage. However people need to be be wary of borrowing too much over their salary as the Bank of England’s base rate, which is currently at 5.25%, may also be set to rise, leading to an increase in mortgage repayments which could mean people struggling to keep up with monthly payments.

Read the article at MyFinances.co.uk

The Prime Minister has made clear his enthusiasm for introducing a 25 year fixed rate mortgage amongst the already vast range of mortgage options available to home buyers today. It has been suggested that this long-term fixed mortgage could be a valid way of stabilising the current state of the UK housing market.

However Abbey Mortgages have completed a survey on this very topic and have found that UK homebuyers are more reluctant than the Government about the popularity of this option.

From the article:

‘Abbey surveyed 1,000 people and found that only 23% could confirm they would consider a 25-year fixed-rate mortgage’

This type of mortgage is commonplace in other european countries but from the results given many of the respondents (54%) said they would not consider this type of mortgage due to the uncertainty of future interest rates.

Read more from the article here Finance Markets

You’ll probably know that the Financial Services Authority (FSA) regulates the financial industry in the UK. Basically they (try to) stop us getting ripped off when we take out a loan, mortgage, insurance, or other financial product. Pretty much every loan or mortgage company needs to abide by their rules – you might have noticed the term “FSA regulated” or something similar.

They’ve got a great website for consumers called MoneyMadeClear. The site explains pretty much any financial product you can think of, and in simple, clear language. Amongst others, they cover bank accounts, credit cards, loans, pensions, savings accounts, bank accounts, investments, insurance, and so on. In fact, pretty much everything that they regulate!

Head down to their website to find clear, straightforward, unbiased advice: http://www.moneymadeclear.fsa.gov.uk/

A perspective from across the pond, as our American cousins view the UK’s “looming mortgage crunch”. Bloomberg (the US financial news organisation) has interviewed several brits, including a couple of consumers, a mortgage broker, and an independent financial advisor. The news seems fairly bleak to those borrowers who’re already stretching themselves. From the article:

“Ben Craster says he’ll be drinking less beer this summer, and Christine Baines is cutting back on clothes and cosmetics. They’re among the millions of Britons preparing for a mortgage crunch.”

Plus:

“‘We have a fixed-rate squeeze coming,’ said Alan Clarke, an economist at BNP Paribas in London. ‘Consumers are going to bear the brunt of a slowdown.’”

Read more at the Bloomberg site here

The Motley Fool has 5 of the worst mistakes you’re likely to make when buying your new home. The UK housing market is wobbling at the moment, due at least in part to 5 interest rate rises since August 2006. Cliff D’Arcy at the ‘Fool has identified a few traps for would-be homeowners.

Here are the one-liner tips:

1. Buying in the ‘wrong’ area
2. Not putting down a deposit
3. Borrowing too many times your salary
4. Choosing the ‘wrong’ mortgage
5. Buying at the top of the market

Read more at the Motley Fool website here