Indeed, this is something that more and more people and discovering for themselves as, for a variety of reasons, people seek out alternative ways of borrowing money that don’t involve the well known financial institutions that are to be found up and down so many of the nation’s high streets.

Ever since the economic downturn pawnbrokers, in the face of the so called ‘credit crunch’, are playing an increasingly important role in communities where people can’t secure a loan through a more mainstream source. Regardless of their credit history, anybody who is willing to use an un-needed piece of their property as security can turn it into a way to gain access to short term credit.

If you are considering using a pawnbroker in order to get your hands on some cash, there are a few things it’s worth knowing before looking into arranging a credit agreement. The first of these considerations is the question of how much money you’ll actually be able to borrow.

Answering this question depends entirely on what you are able (or willing) to offer up to a broker as security. Even then, it is important to understand that you won’t be able to secure a loan for its whole value. Generally, the figure will be closer to about 2/3rds of the value of the item used as security. This is because it is closer to the figure that the broker would be able to realise themselves if they were forced into a position where they might have to resell it (due to the customer failing to meet the terms of the loan agreement.)

When it comes to the question of interest, 5-12% is considered fairly normal, with 8% representing a pretty decent deal. Of course, the rate you actually receive is entirely down to the broker, but, if reading those percentages has you balking at the thought of how much such a loan might end up costing you, it is worth remembering that, if you were looking to get a similar amount without security, from a ‘pay day’ lender, for example, you might end up with an APR the boasts a whole four figures.

As long as you are confident that the credit agreement you’ve entered into will be realistic for you to meet, and you aren’t using an item that it would ruin you financially to lose, pawnbrokers might provide a cheaper way of getting credit quickly.

Being chased for a debt that is not yours can be a painful and stressful experience. With many debt collecting companies using bullying tactics and threats of bankruptcy and court hearings, being put in this situation can make you feel powerless and voiceless.

For those of you who are being chased by a debt collector or a lender for a debt that isn’t yours, you do have some options.

First of all, while it is human nature to try and ignore the problem for as long as possible, it is crucial that you contact the debt collectors immediately. If you plan to write to the company, make sure that the letter is recorded delivery and you allow them the opportunity to look into your problem. It is important that you state clearly all your information and relevant circumstances, as the lender may have mistaken you for someone else with the same name, got the address wrong or it could be a case of identity theft. It is also sensible to ask the debt collector to provide a copy of the original statement of the account which you are being chased for.

Regardless, the lender or debt collector has eight weeks to look into your case. During this time you can always report the matter to the Office of Fair Trading (OFT) and, in addition, inform the debt collection agency that you intend to do so. Debt collectors and lenders need a license from the OFT and, under the Consumer Credit Act 1974, if the OFT deems that the company is unlawfully pestering an individual then they can lose their license which can put them out of business. The OFT can provide support for individuals by contacting the debt collector and telling them about your compliant and circumstances.

If after eight weeks you are still be harassed by the debt collecting agency, then you have the right to report the matter to Financial Ombudsman Service. The Ombudsman can help with complaints about a debt collector chasing you for a debt that is not yours and can put you in touch with your local councils trading standards departments for more personal face-to-face advice.

Download a PDF of the official Ombudsman Complaint Form for more information regarding the complaints procedure.

UK law requires all lenders to register with the Office of Fair Trading (OFT) in order to operate their businesses lawfully. If a lender conducts his business without a license, then the lender is breaking the law and is liable to criminal charges. Such a lender is known as a loan shark and borrowers are advised to keep away from them.

Loan sharks

Loan sharks often operate from home. Their loans are characterised by exorbitant interest rates and inadequate supporting paperwork. Because they operate illegally, loan sharks often result to underhand means to collect the money they lend out. It is not unlikely for them to threaten violence on loan defaulters. In some cases, loan sharks force people into degrading practices such as dealing in drug and prostitution to repay loans.

Never take the threats of someone who lends you money lightly. If you are threatened by a lender, contact the police immediately to prevent any unfortunate eventualities that could result from the threats. If you borrowed money from an unlicensed lender, it is not you who has broken the law. It is the lender who is the law offender.

You are, however, advised to find out whether a lender is licensed to do business before you enter into any agreement with them. Look up the lender in the Consumer Credit Register on the OFT website at www2.crw.gov.uk to determine if a lender is registered or not.

Consumer Credit Register

The OFT is mandated under the Consumer Credit Act 1974 to keep an accurate and up to date register of all consumer credit license holders. The Consumer Credit Register maintained by OFT contains details of present and past applications for consumer credit licenses as well as details of holders of the consumer credit licenses.

Other details in the register include information on renewed, revoked and refused consumer credit licenses as well as changes to certain clauses in a holder’s license. Validation Orders pertaining to credit arrangements made by incorrectly licensed or unlicensed lenders are also available in the register.

Consumer Credit Register Search

Search the Consumer Credit Register to verify the legitimacy of a lender. The OFT website provides a search engine to look up lenders in its database. Enter details of the lender in the appropriate search engine fields and note the status of the lender’s license if it exists in the database. If a lender is not registered, their details will not show up in the search engine results.

If you still have doubts about a lender’s status after the search or the search results appear incorrect, contact the OFT by emailing them on enquiries@oft.gov.uk. OFT will help you clarify the status of the lender in question.

You now have the opportunity to shop around for your finance, just as you would do for the car itself. The finance options available will be determined by many factors, including: your credit status, cost of the vehicle, age of the vehicle, the size of deposit you want to put down and the mileage you intend to do, to name just five.

If you have had credit problems in the past, you may have to look at what are called, sub-prime lenders. These include companies like Yes Car Finance amongst others. The problem with these, is that you apply for finance first, the, upon acceptance, you are directed to one of their own dealerships where you are limited to the cars that they are selling. This severely limits your ability to do any meaningful negotiating, and leaves you in a ‘take it or leave it’ situation. However, for those that are unable to obtain credit through conventional channels and need a car, these companies can be a godsend.

For those that have all financing options available to them, it’s time to start shopping around. Firstly, it is important to set a budget and stick to it. Decide how much deposit you want to put in, and how much a month you are willing to spend. Keep in mind, that although a longer loan period will give you lower monthly payments, it will result in you paying more in interest. Also be realistic about how long you intend to keep the car.

Many people can be tempted by low deposits and long loan periods like 60 months, even though they usually change their car every two to three years. This results in a nasty shock when they go to change vehicles half way through the agreement term.

It may be a good idea for regular car buyers to choose a PCP or lease purchase agreement. These are designed for people who have a regular change cycle of typically two to three years. They work by off-setting a proportion of the loan to the end of the agreement, which keeps the monthly payment down. If you only placed a small deposit down initially; the idea is that there is enough equity in your part exchange at the end of the agreement, to use as a deposit for your next car.

The difference between any hire purchase agreement and a personal loan is that they are secured against the car and not you. If you are unable to keep making the payments, the finance company will first try to recoup the outstanding amount by repossessing the car and selling it. You will though, however, still be liable for any shortfall.

When considering whether to approve your application or not, lenders will be looking at whether you have an acceptable credit history, and whether you are who you say you are. To do this, lenders use credit reference agencies to obtain a report detailing both your credit and address history. The key to avoiding unnecessary rejections is to make sure that your credit report is in the best shape possible.

There are a number of places online where you can, usually for a small fee, obtain a copy of your credit report. CreditExpert is one such site and gives you a free 30 days trial to see your credit score and report. Once you have a copy, check that the information is accurate and up to date, as these agencies deal with the information on literally millions of people and mistakes can be made. If you find agreements that have been satisfied are still showing as active, or that your address details are incorrect, get in touch with the agency and give them the correct information. All the information contained in your report is used to calculate a score, which is one of the first pieces of information that lenders consider when reviewing an application.

Although there are a number of ways that you can improve your score, you cannot hide payment arrears, defaults or other accurate, correct and detrimental entries. To obtain and maintain a good credit rating, you need to make sure that you have utility bills, such as gas and electricity in your name and paid on time and up to date. The same thing applies to any other forms of credit you may have, such as credit cards, mortgage or store cards.

Even though it can be difficult to obtain credit if you have never had any before, it can also count against you if it looks like you already have enough, or too much credit already. It is much more common these days, for lenders to ask to see proof of income so that they can be reassured that you are able to afford the loan that you are applying for. This is especially true when applying for large amounts of credit for big ticket items, such as cars.

Another thing to remember, is that if you are turned down, do not make repeated applications elsewhere. Failed applications are recorded along with successful ones, so multiple, failed attempts to obtain credit will make it even less likely that you will be accepted, each time that you apply.

By keeping a check on your credit report, and updating the electoral role, you’ll give yourself the best chance you can to get the credit you need. It is harder to obtain than before, but if you’re approved, it means that the lender is happy that you can afford it.

The majority of students applying for university from sixth form or college will be eligible to apply for student finance. This is a loan from the government that will cover university or college tuition fees and provide some additional money for living expenses based on your household income. Further information on funding and criteria can be found here. EU students who have lived in the UK for at least three years can apply for student finance as well; they also don’t have to pay overseas fees. In addition to this people whose household income is beneath a certain threshold may not have to pay back some of their loan. Repayment starts only once you have finished university and are earning over a certain amount (currently £21,000), if your salary falls below this the repayments pause. The interest on your loan for the duration of your course is the rate of inflation plus 3%, then once your course finishes it depends on how much you start earning.

Another method of funding a student life is a bank overdraft. Many banks are looking to encourage students to sign up with them so they will provide interest free overdrafts for students and also other sign up perks. This can be useful for a short time, but an overdraft must be paid back after graduation at a very high rate of interest.

When student’s first get to university it can be very difficult for them to adjust themselves to a different, and sometimes a much more restrained, style of living. Budgeting is a very important step on the path to staying financially healthy – on average most students spend between £40 – £60 a week for shopping and travel.

Many people assume that when they get to university they will be able to easily pick up some part-time work to supplement their income. However, most university and college courses are described as ‘full-time’ for a reason, it’s true that students don’t spend all their time in lectures but these are spread through the day at intervals making paid work very difficult. Evening work is a possibility at a pub or restaurant, but after a hard day of learning it can be very tough to go out again at night. If a job is a necessity many universities offer small positions for their students in campus shops or in student supervising roles. These are usually the best option as they have flexible hours and restricted to term time.

As you spend your time as a student, budgeting and scraping together money, don’t forget to think about the fantastic opportunity you have and that, due to your hard work, you have a very bright future.

Euro Earthworks Limited, the principal contractor at the site, has been charged with breaching Section 2(1) of the Health and Safety at Work etc Act 1974. The company will be tried at City of London Magistrates’ Court in July.

An employee of Euro Earthworks Limited, Michael Cunningham, of Eastbourne, has already pleaded guilty to breaching Section 7 of the 1974 Act, which states: “It shall be the duty of every employee while at work – (a) to take reasonable care for the health and safety of himself and of other persons who may be affected by his acts or omissions at work; and (b) as regards any duty or requirement imposed on his employer… to co-operate with him so far as is necessary to enable that duty or requirement to be performed or complied with.”

Mr Cunningham was fined £700 by no win no fee solicitors with costs of £1,000. Hydro Plant Limited, of Brent, admitted breaching Section 3(1) of the 1974 Act and was fined £7,000 and ordered to pay £10,000 in costs.

The triple prosecution follows a fatal accident on the 28th August 2007. Mr Cunningham had been operating a 12-tonne excavator when its bucket containing a load of concrete fell on and crushed Gerry Fox. An investigation revealed the load had not been properly secured and that colleagues were allowed to work directly beneath the machine causing an accident at work.

Personal injury claims involving accidents in the construction industry are common in the UK. Most such claims arise following slips, trips and falls from height. However, poorly secured loads and heavy machinery also give rise to accidents from time to time.

Loraine Charles, an inspector for the Health and Safety Executive, said: “This tragic incident was entirely preventable. There had already been a significant number of incidents involving buckets becoming detached from quick hitches, in particular semi-automatic quick hitches where operators had failed to insert the safety pin.”

Ms Charles added: “Mr Cunningham can have been in no doubt that he should not have operated the excavator without the quick hitch’s safety pin in place and that he should not have manoeuvred the bucket over people. As hirers of the work equipment, Hydro Plant Limited should clearly have paid much closer attention to the requirements placed upon them by health and safety law, to ensure that use of the equipment was safe.”

There comes a time in most everyone’s life when they need to borrow money. There are many reasons for borrowing money – you may have decided it is time to buy a home, you might want to further your education (such as with a professional and career development loan), or you may want to finance a new automobile. In some cases, you may even want to borrow money to pay off existing debts, such as credit cards or lines or credit.

From whom should you borrow money? In some cases, you will borrow money from your bank. If you have already established a business relationship with your bank, it will be much easier to get a loan. You may also choose to borrow money from a commercial lender – when you buy a house or a vehicle, the company you work with will most likely have a list of preferred lenders.

Borrowing money from family members is another option. If you lack the credit to borrow from a bank or commercial lender, or you want to avoid paying high interest rates, this can be a good solution for meeting your financial needs.

There are several things you should think about when borrowing money, though. If you borrow from a commercial lender or bank, you will need to consider how much the loan will really cost you. The interest rate and the length of the loan will determine how much extra it will cost you to borrow money.

You will also need to think about how you will repay the loan. It is important to make sure you have sufficient income to cover your loan payments; otherwise, financial hardship and poor credit will result. Don’t count on raises or other income increases; instead, base your decision on your current income.

Finally, if you borrow from family, think about what this will do to your relationship. If you are unable to repay the loan, you could easily destroy a relationship that has taken many years to build.

A remortgage involves switching your home loan to a new lender without moving house.  As part of the remortgage process you can normally borrow additional money depending on the equity in your home and your income and outgoings.  Once your remortgage is completed you have one loan, one lender and one monthly payment.

A secured loan is an additional loan that you take secured against your property.  It is normally separate from your main mortgage and is often with a different lender.  You will generally find that you have two separate loans with two different lenders, resulting in two separate monthly repayments.

Secured loans can sometimes be more beneficial than a remortgage.  For example, if you have an excellent deal on your current mortgage that you don’t want to lose, taking out a secured loan can help you.  In addition, secured loans are sometimes easier to obtain if you are self-employed or if you have a less than perfect credit history.

However, remortgages are often a better solution than a secured loan for several reasons.  Firstly, remortgage rates are typically lower than the interest rates available on secured loans.  A remortgage lender takes a ‘first charge’ against your home meaning that they have the first demand on any proceeds should you fail to keep up your repayments.  As a secured lender typically takes a ‘second charge’ there is a higher likelihood that they won’t recoup their money, meaning the lending is riskier.

The advantage of lower remortgage rates also means that you can secure a great deal on both your main mortgage and the additional sum you are borrowing.  You may be able to benefit from a fixed rate or a discounted/tracker deal on all your borrowing.  As a secured loan is separate to your main mortgage, the interest rates will generally be different.

In addition, the fees for remortgaging can often be lower than for taking out a secured loan.  Many lenders will meet some or all of the costs incurred in a remortgage – such as valuation or legal fees – whilst you may have to pay arrangement or survey fees if you want to take out a secured loan.

Taking out a remortgage rather than a secured loan can also keep your finances more straightforward and easier to manage.  If you take out a secured loan you will find that you have two different lenders and two separate direct debit payments. You will have to get in touch with both lenders to change any details and it can mean your finances are more complicated.

A remortgage leaves you with one lender, one home loan and one payment.  You don’t have to worry about multiple creditors or making more than one payment from your bank account every month.

If you are a homeowner and you are looking to borrow additional funds, secured loans and remortgages are two of the most popular options.  However, before you sign up for a deal it is important that you weigh up the pros and cons of each type of borrowing in order that you find the most appropriate home loan.

James McHeggins writes for JustRemortgages.com one of the UK’s top sites for the latest remortgage rates and best remortgage deals.

A debt management plan is an informal agreement with your lenders which allows you repay your unsecured debts at a rate you can afford over a longer period. If the debt management plan is arranged with the help of a debt management company, it’s often possible to consolidate all the debt repayments into one monthly payment.

One thing to consider before starting a debt management plan is that, although it should make your monthly payments more affordable, you may have to pay interest for longer – meaning you could pay more overall.

However, sometimes lenders will freeze interest or charges as part of the agreement, which would prevent the debt from getting any bigger.

Finally, lowering your monthly payments would be noted on your credit file for six years, and this could make it difficult to borrow more money in that time.

And remember – your lenders are not obliged to accept a debt management plan. If you’re struggling to come to an agreement, talk to a debt adviser about what other solutions are available.

Debt consolidation

Debt consolidation is more aimed at people who are managing well enough financially, but want to rearrange their finances or reduce their outgoings.

It involves repaying multiple debts with a new loan, leaving you with one debt and one monthly payment. Some of the key differences between this and a debt management plan include:

• A debt consolidation loan will clear all of your unsecured debts and leave you with one larger loan to repay, whereas a debt management plan involves repaying each of your unsecured debts gradually.
• With a debt consolidation loan you will pay one fixed rate of interest, whereas on a debt management plan you may be paying different levels of interest on each debt (if interest isn’t frozen).
• You can only qualify for a debt management plan if you cannot afford your existing repayments, whereas a debt consolidation loan would not be suitable if you cannot afford your repayments.

An advantage of a debt consolidation loan is that it simplifies your finances by leaving you with one monthly payment. Another is that you could lower your repayments by spreading them over a longer period, which could free up money in your monthly budget. However, as with a debt management plan, spreading the loan over a longer period may cost you more in interest overall, so consider this before you apply.