Libor rises to level last seen in mid-2009
November 10, 2011 by Annabelle Rowan · Leave a Comment
The key measure of financial stress in the British banking system has hit its highest level for more than two years.
The three-month London Inter-Bank Offered Rate (Libor) – the interest rate that reflects banks’ willingness to lend to each other – reached 1% for the first time since July 2009 on Wednesday. It means that banks are now charging each other almost twice as much as the Bank of England’s base rate of 0.5% to borrow money. In normal conditions, the gap between base rate and Libor is typically 0.15-0.2%; the rise to 0.5% indicates growing alarm about the safety of the financial system.
The bad news for consumers is that Libor is one of the key elements in mortgage pricing, and a sustained rise in Libor soon feeds through to higher mortgage rates. Ray
Can I Include a Financed Vehicle in a Debt Consolidation?
October 31, 2011 by Annabelle Rowan · Leave a Comment
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Some people seeking to reorganize their finances choose debt consolidation loans to pay off a variety of loan accounts. Paying off the debts results in one monthly payment that is usually less than the total amount the debtor was previously paying on the debts. Debt consolidation loans are often used to eliminate credit card debt, but a debtor can also pay off a financed vehicle through debt consolidation.
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Paying off a financed vehicle through debt consolidation may require a large credit line on the debt consolidation loan. That could present a challenge for some people who do not meet credit requirements for large loans.
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With Wonga, your prosperity could count on an algorithm
October 9, 2011 by Annabelle Rowan · Leave a Comment
A few years ago, I interviewed the author and cultural jedi Malcolm Gladwell and the conversation digressed on to first impressions. Gladwell was explaining, in trademark style, that he was no fan of job interviews – in fact, if he were to employ an assistant, he would take the CVs of the applicants, excise the ones that were clearly inappropriate, and then make the selection from a hat. “You pretend that you can make all these insights from meeting someone, but you’re lying to yourself,” he concluded. “We are too much in love with generating the impression from the person.”
I am reminded of this point when I meet Errol Damelin, the founder of short-term lender Wonga. In the mid-2000s, he made a realisation similar to Gladwell’s, but took his conclusions in a very different direction. A
Legal Ramifications of Chargebacks
September 27, 2011 by Annabelle Rowan · Leave a Comment
The technical purpose of a chargeback follows the view that a buyer should be protected from unscrupulous charges to her credit line account. However, some buyers intentionally buy items via credit card and then fraudulently indicate the product was bad or never received, forcing a chargeback on the seller. The seller ultimately loses the product and the sale revenue, losing twice to such fraud. As a result, credit card companies work to prevent illegal chargebacks.
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Whether the buyer is an individual or a business, some kind of notice is typically required to the seller that a transaction is in dispute. For individuals, the credit card company takes care of this notification.
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Is US Heading Towards Another Financial Crisis in 2012?
September 22, 2011 by Annabelle Rowan · Leave a Comment
Our bitterest encounters with debt followed by the complicated debt relief process of the debt settlement firms remind us of the worst financial nightmares we survived. But is that all for a lifetime? No perhaps, as most probably US is going to witness the next level of financial crisis backed with massive amounts of new debts, vast quantities of additional digital dollars and the spark of higher interest rates in 2012 according to most financial experts and economists. Very clearly can it be noticed that the rising interest rates are going to be the driving factor behind the second level of financial collapse in future US. With rapidly growing price inflation, interest rates will be forced northward. It is being found that China and Japan who have been the major purchasers of US treasury debt are both declining to do so recently.