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Don’t be hasty when purchasing a new car. Consumers in the UK are said to paying through the nose for overpriced car finance plan’s offered through dealerships.

The average plan for car finance carries an APR of around 11%, however a personal loan sourced with the intention of purchasing a car could cost around 50% less. New figures suggest that motorists in the UK will overspend by almost £230 million on car finance plans pushed on to them by showrooms.

If you are buying a new car on credit it would be wise to shop around before visiting a showroom. There are at least 3 personal loan providers in the UK offering car loan plans carrying an APR of around 6% or less.

You are also less likely to feel pressurised into signing finance agreements if you already have the finance in place. Do the research and you could save thousands in repayments.

Is it possible to borrow your way out of debt? Many consumers in the UK seem to believe it is.

One of the main reasons behind the huge influx of consumer debt is thought to be due to lack of education or misunderstanding when it comes to credit. A debt consolidation loan is a very good way to coordinate ones debts, however it is only effective if the individual ceases to attain any new forms of credit.

TV and press advertising is also not helping the problem. Many companies are promoting certain forms of debt relief as an instant fix to a serious debt problem. Consumers seem to be misinterpreting messages and are relaxing their attitudes towards bad credit.

It is not sensible to consolidate debts with the intention of then borrowing more as it only increases the severity of the problem. Attaining new forms of credit should never be seen as a way out of debt as it just isn’t practical.

If you’re a first time buyer, getting onto the property ladder can be a daunting prospect. The number of first time buyers in the UK has fallen sharply in recent months, we take a look at some of the reasons why first time buyers are struggling to find a new home: -

1. House Prices

The average home is the UK has rose to more than 200k. Many first time buyers do not have a realistic view of the current state of the housing market and have unrealistic expectations as to what is available to them based on their budgets.

2. Deposits

Due to market conditions, a healthy deposit is crucial when applying for a new home loan. Many young individuals do not have the financial resource to offer the required deposit amount.

3. Debt

The current level of personal debt amongst new buyers is restricting the ability to save. Lack of savings usually means lack of deposit.

4. Job Security

A home loan for a first time buyer is likely to be sizeable, the larger the loan, the larger the repayments. The average monthly repayment for first time buyers is around the £600 mark with the average loan duration being 25 years. Coupled with job security, many new buyers are put off by such a large commitment.

The government now offers various schemes for new buyers to purchase a new home in the form of part ownership. However, some buyers are deterred by such schemes for feelings that they do not truly own the property.

The general consensus is that eventually something has to give. There has recently been evidence to suggest a slowdown in the housing market but whether it will continue or be enough to help first time buyers, remains to be seen.

It has been reported that a record number of consumers are being refused credit cards; with almost 110000 applications rejected every week.

It is thought that many lenders are tightening their criteria when it comes to credit card borrowing in response to the mounting debt effecting consumers in the UK. Some credit card companies have been affected badly with consumer debt, one provider reported losses of over 1.3 billion last year alone.

The average interest rate on credit cards is around 16.4% with some cards being much higher. Personal Loans are a far cheaper way of borrowing money if the consumer is prepared to shop around.

The number of approved bank loans for the purpose of purchasing new homes has decreased for the second month running compared to equivalent months last year.

The decline in the number of new home loans is said to be further evidence of a slowdown in the UK housing market. However, the average loan approved is up almost 15% faired against the same time last year.

Demand for new homes is almost certainly decreasing; this could be due to a number of factors the most likely being a shortage in the housing market.

On the other side of the coin, first time buyers are finding it increasingly difficult to get onto the property ladder. The average house price in the UK is said to be over £200,000 up almost 30%. Sourcing home loans to fund 100% of the house value is unrealistic for many first time buyers, and in most cases impractical.