How Peer-to-Peer Lending Can Save You From Debt

Living in debt is never easy. Managing multiple payments and dealing with numerous creditors takes its toll on a debtor and can affect the whole family. To make keeping on top of your debt more straightforward, debt consolidation can be a lifesaver. One of the more popular debt consolidation loan options of the moment is to use peer-to-peer lending.

 

Peer-to-peer lending, otherwise known as social lending, works by bringing individual savers and borrows together to get better rates on their spare cash or debts. Debt consolidation loans at Zopa bring together lenders from all walks of life, from students and young professionals to pensioners and business owners. Borrowers in need of low rate loans are matched with savers who want high interest rates on their savings – both can make the most of rates they may not normally receive through a traditional bank.

 

A debt consolidation loan is one of the easiest ways to reduce your total debt cost. By taking a lump sum loan you can immediately pay off all your outstanding debts, leaving just the cost of one loan repayment to worry about each month from there on. With just one repayment, household budgeting is simpler and the cost of your total debt will be cheaper too. When paying the minimum payment for individual credit cards or hire purchase each month, you may be dealing with just the interest element of each debt. As soon as you consolidate your debt, you will only need to pay one, lower, interest rate on the full amount.

 

Peer-to-peer lending enables access to cash without even setting foot in a bank – a relief for those who have had stressful experiences dealing with finance professionals in the past. There’s a real sense of community when borrowing from your peers, for those who just hate traditional banking, its ideal. However you need to remember that with peer to peer borrowing it’s not suitable for everyone as there are tight criteria to fill.

 

Lenders must have a good track record of repaying debt in the past and need to be able to prove identity and a UK address history for at least 3 years. Using social lending providers like Zopa, you can apply online and have a team of underwriters make a decision for you in just 24 hours. If your application is successful your loan can be paid directly via BACS within just 3 days.

 

A bit about Zopa Peer-to-Peer Lending

Zopa is the leading social lending service in the UK. Launched in 2005, to date they have lent over £434 million with over 45,000 active lenders signed up and 71,000 borrowers. Social lending, also called peer-to-peer lending which you see referenced above, is the practice of lending money to unrelated individuals, or theoretical peers, but without either the lender or the borrower going through a traditional financial intermediary such as a bank. Zopa are one of the UK’s leading peer to peer lending sites, matching individuals willing to loan money with borrowers looking to borrow money for things such as debt consolation.

Zopa were voted Moneywise’s ‘Most Trusted Personal Loan Provider’ for the past 4 years.

Saving levels are back on top – but how can we keep them there?

The country is finally beginning to recover from the effects of the economic recession. It has been a long, hard slog, but things are improving and people are starting to think once more about building their savings instead of struggling to pay the bills every month.

According to NS&I’s Quarterly Savings Survey, the amount of money Brits are storing away has increased to over £100 per month. For last winter (2013), the average British saver put £101 aside – £3 more than they saved that autumn and £13 more than that spring.

In relation to income, women save a higher percentage of their salaries than men – 8.36% against 7.84% – and the overall trend is that saving levels are at their highest point for sometime (although shockingly almost a fifth of both men and women still fail to put regular money aside each month).

While saving levels being back on top is good news for everyone, the most important thing to consider is how you can keep them there.

It’s good to save

Putting money aside for a rainy day is something we all should do – but sadly not everyone lives by this simple rule and too many people spend everything they earn. Having a decent amount of savings in the bank will act as a safety net in the event something unexpected happens. After all, we never know what life is going to throw at us, so have you considered how you would cope if the car broke down or you lost your job?

Stick to a sensible budget

It is impossible to save if most of your income is frittered away on gym memberships, meals out, clothes, holidays and all the other things you can live without. If saving money is proving to be a tough cookie, you need to start budgeting.

Start by cutting back on luxury expenses and look for cheaper alternatives to your favourite hobbies. Invest in a second hand exercise machine to bring the gym into your home or go for long walks and runs in the outdoors for free. Limit the number of meals you have out to only cover special occasions and sell clothes you no longer want or need to afford new ones. You can also holiday with friends or family to cut costs on your trips away.

Set yourself a sensible budget that is manageable for your situation and invest excess money in a savings account. It’s important to be practical when setting your budget as trying to live on a pittance will only affect your chances of successful saving and thus impact your motivation.

Reduce debt

Being in debt makes it difficult to put money aside for a rainy day. One way to minimise the impact of debt is to restructure it so that you pay less in interest. A consolidation loan is a good way of dealing with debt as it lumps small debts under one umbrella and reduces your monthly payments in the process. A poor credit history can make securing a consolidation loan difficult so you may want to consider guarantor loans such as those offered by Buddy Loans where a family member, friend or work colleague stands as guarantor for the money you borrow.

You can also use these loans for unexpected costs or emergencies – something which will stop you dipping into your savings and ruining all your hard work!

Advantage Gambling Play Returns – April 2014

April Returns:

Ongoing:
Betfirst misc 16.51
Bragbet misc 74.97
Betbright reload 34.87
Netbet reload 100.34
Coral e/o 4.5
Titan boost 20.30
Bet365 4/1 40.03
Winner baseball 3.60
Tomwaterhouse 65.59
Betfair 3.89
Betfair ref if 20.55
Betfair ref 34.80
Genting National 4.63
Genting mug 27.50
TGT sweep 125
Racebets BTT 6.81
Racebets BTT 30
188bet UCL 27.55
Betfred boost 121.16
City lay 50
Betsafe ref Bale 45.92
Lightbet ref 13.56
(Misc losses 148.68)

Masters:
(40.65) washout-failed to get watson

US:
Linesmaker 58

New:
Geoffbanks 27.98

Casino/Games:
FBP/V 73.70
Betfair fs 1.85
Coral mini 24.05
Coral egg 35.19
Coral voucher 18
Coral 10
WilliamHill 216.70
Totesport euro roulette 6
Totesport games 1.95
Bet365 George 11.60
Grosvenor 12.80
Betfred game 17.79
Virgingames 20
(misc losses 58.67)

Total: £1,112.07

YTD: £7,524.45
MTH AVE: £1,881.11-which in truth is where it has been over the 7 and a bit years at this.

A poor month-my lowest return for 2 years. Lost a number of accounts in the last week or so to compound matters.

Still, the beauty of this lark is that there’s always another month and another book. May brings the climax of the football season (huge week for City!), the final of the snooker and more MLB.