There are many companies out there who offer bad credit loans to individuals who have a very bad credit history. Some may be genuine companies and others may not however, what you need to realise is that, whatever their motive, even if it’s to help you genuinely, it will not work. It never works with loans.

Look at ALL the people who have taken loans out in the past without giving much thought to it. It has destroyed lives, families, friends, businesses, homes, jobs, you name it.

My advice is that do not take out a loan and more importantly, if you have taken a loan out, then don’t go anywhere near a bad credit loan, no matter how appealing it may seem, it’s not for you. Your situation will become worse.

I know many of you will not agree with me but this is fact. Lots of research has been carried out in this field and millions have been spent by financialists and researchers researching the truth about loans and how it destroys the life of people.

Why has it had so much effect?

When people and businesses take out loans, they hope the interest rates will remain the same throughout the period of the loan; and plan accordingly. But, as we all know, this is not the case and those individuals and business suffer. Not suffering that lasts a day, a week, or even a month. Financial problems that can potentially last a lifetime.

Even during the recession and credit crunch, you will hear all sorts from ‘Loans’ to ‘Low Loans’ to ‘Secured Loans‘ to even ‘Free Loans’!

Even if your business is doing really well and you think it won’t be a problem. Just look at the world banks. They came down in a fraction of days. Even Google are starting to struggle financially, although they still make a good profit. How do we know this? They have started taking on new staff and using existing staff to fill up new positions.

You can read all about people who have taken loans without considering the consequences and see what they go through in their day to day lives.

Sooner or later it will catch up to you.

In the beginning, you can manage this yourself but as you business grows, it will be best to have someone else manage this area of the business. this can internally or externally. It would probably be best to go externally first and when your business is large enough, hire a full time specialist.

There is lots of help available all over for all areas in money and debt.

Below are some tips for if you left it too late:

• Tip number one: Don’t freak out!
  This is the number one thing that breaks bust’s a business. By freaking out, you are just making it worse for yourself and your business
• Plan, Plan, Plan
  Although you have been hit, and been hit HARD, don’t worry, you still have time, probably a few months. You need to plan seriously and get everything right the first time. Otherwise, say good buy to your business.
• If it’s very serious, consult a Debt Recovery Company.

Middle class parents are being forced to take out personal loans so that they can fund school fees as dive into this credit crisis.

Almost 18,000 parents took out loans to cover their children’s education last year as the cost of living is increasing.

Day schools can cost an average of almost £10,000 and boarding schools can cost double that amount.

People would previously borrow against the value of their property but with the decline in property value and lenders now allowing one to borrow more than 75% of the value of their property, everyone is being forced to take out a personal loan.

Schools have raised their fees in anticipation of harder times in the market of professionals. Times are hard so check if the schools raised fees in the past and find the best loan rate available.

Britons are being over charged by £1.4bn a year from sales of PPI according to the competition watchdog.

The competition commission has now said that they will be taking measures to either ban the sale of PPI at the same time as when the loan is arranged or to place a price cap.

If this is something you’re quite good at, then have you ever considered a career in money-management?  There are many different careers available, some of which I’ve listed below:

• Mortgage Advisor
• Banking
• Accountant
• Financial Advisor (this is the ultimate one!)

The money you can earn in each career varies widely, I’d imagine the top-paying ones are mortgage advisor and financial advisor, depending on where you work and how many hours you put in.

To get into becoming a mortgage advisor, you need to undergo CeMAP training and take your CeMAP exam.  CeMAP stands for Certificate in Mortgage Advice Practice.

To become a financial advisor, you need a similar qualification called CeFA, which stands for Certificate in Financial Advice.

I have a friend who is about to train as a mortgage advisor, so good luck to him.  A mortgage is just about the largest loan most people are ever likely to take on, so getting the best mortgage deal seems pretty important to me!

A non profit organisation , Church Mortgage and & Loan Corp based in America who was a major lender to faith based organisations has had to file for bankruptcy at the end of March. This is due to an unknown number of borrowing churches not keeping up with their payments.

I feel as though they weren’t praying hard enough so that is why the good lord wasn’t providing the income.

The largest mortgage lenders will pass the cut on to their customers who pay variable rates. However many mortgage lenders are yet to increase their interest rates.

Despite various bodies trying their best to counter act the effects of the credit crisis it appears as though we wont be seeing an improvement in the situation in the near future.

As we all know, whatever happens in America tends to make its way over here and this fear of a crisis, combined with our own problems aka Northern Rock, has meant many mortgage lenders have been tightening their lending criteria and even withdrawing products altogether.

What has this got to do with personal loans you might ask? Well, as the lending criteria for mortgages has tightened, thus this fear of a crisis has now filtered down to the personal loans market as well. Northern Rock was naturally one of the first and they have stopped doing personal loans altogether unless you already had a pre-approved application with them connected to your mortgage.

Others are quickly following suit or at the very least increasing their interest rates. We’ll keep you posted…

According to the latest report British consumers were lent £21bn of personal loans without income checks.

70% of applicants were not asked to prove their income and 45% of pople took out loans from other lenders instead of their own banks so the lender had even less information about their potential borrower. 15% were not asked at all about their income. It seems as though the potential profits were too good to resist.

As you may be aware many banks had record levels of write-offs which is partly caused by this reckless lending.

A new banking code has now been put into practice which makes lenders abit more responsible before handing out any money however borrows could still be persuaded into borrowing more than they can afford.