Archive July 2018

CCJ – County Court Judgement(S)

Well, What Is a CCJ?

In simple terms, it is an order that a court in the UK issues for non-payment of any money owed. It is sometimes also called as County Court Summons. It is one of the ways used by creditors or the lenders to extract the money from their borrowers.

You can be issued with an CCJ if you have missed your payments on loan such as secured loans or unsecured loans like NO GUARANTOR LOANS.

How Much Can I Borrow?

Can I still borrow money in the future? These are two of the most common questions often asked by customers after receiving a CCJ.

Don’t panic! We’ll tell you what to do when you receive a County Court Claim form or a CCJ. We’ll also guide you how to avoid receiving it again to ensure little or no impact on your credit scores.

  • As a first step, if you owe any money to someone, they can approach County Court for a judgement against you. The Court studies the matter and decides if at all there is any debt to pay. If there is debt, the Court will issue a judgement.
  • You will receive a claim form and an admission form. You can send this form back within 14 days, detailing your take on the entire matter.
  • The first option for you is to pay the amount in full, including any court fees. It will ensure no court hearings and no recorded CCJ against you.
  • As a second option, you can offer to pay in installments.
  • The third option could be to dispute the amount stated by your creditor. You can fill in the admission form and send it back to the Court. The Court will take a final call on it.
  • If you think your creditor owes you some amount, you can fill the counterclaim form.

 

CCJ

You must make all efforts not to ignore the claim or miss relevant deadlines. It could otherwise lead to a default judgement against you.

What if I can’t pay a CCJ? Can I approach a lender for an unsecured loan even if I have an unsatisfied judgement on the register?

  • If you cannot pay a CCJ, you can contact the Court, ask them to change the repayment amount.
  • The court sets your repayments based on the information you provide. Your earnings and spending related information helps the Court in deciding such matters.
  • An unsatisfied CCJ remains on the register for six years. It creates challenges while applying for further loans or mortgages.
  • A CCJ gets removed if the customer makes the full payment within one month of the date of judgement.
  • You can have the judgement removed from the register by asking the Court to set aside the verdict. It is possible only if the Court sees a genuine reason to dispute the assessment.
  • Most banks and lenders carry out a CCJ check against the register while deciding on lending. Some direct lenders and finance companies can provide no  CCJ loans of up to £ 30,000 or more.

Got a CCJ against you? Speak to your debt adviser or a direct lender, now.

 

Also Know:
What is Individual Voluntary Arrangement (IVA)?

 

Secured Loans

Secured Loans

Secured Loans

Secured loans are loans which you can borrow against an asset, such as your car or house. These loans help people to borrow a large amount of money which they would not have been able to without an asset. Also, it is less risky for lenders to give you secured loan. They would find you more reliable if you to a loan against the asset. Although if a borrower misses payments of their secured loan, the lender can seize their vehicle. Lenders usually choose this alternative if they don’t have any other means for getting back their money.

secured loans

When Can You Use Secured Loans?

When borrowing a secured loan the lender won’t ask you the reason you are buying so much money. So, you can use secured loan for any purpose, the money is all your so spend it any way you like.

You can borrow secured loan for a family vacation, or any other trip. If you have a small business in mind you can get a secured loan. You can use it for your kid’s school fees or any summer camp that they want to attend. Most people use secured loans for buying a new car, or a motorbike, or to just pay off some other debts.

So you can decide what you want to do with your secured loan, just borrow what you can afford. Remember to make timely repayments and don’t miss any.

 

How Much Can I Borrow in Secured Loans?

The most important question that most of the people ask “How much can I borrow with secured loans?”

The amount that you can borrow from secured loans ranges from £2,000 to £500,000. Although, the exact amount you can borrow depends on certain factors. They take into consideration the value of the asset which you are keeping as a security, your income, if you can afford repaying in time and other few details. Lenders make use of the loan calculator to decide the loan amount, they see to it that you are given affordable interest rates and repayment amount which does not affect your monthly budget.

 

How Are Secured Loans Different than Unsecured Loans?

In secured loans, people with an asset like car or house only can apply for the loan. They get to borrow a huge amount at affordable interest rates, unlike unsecured loans. People make use of unsecured loans when their loan requirement is small and they don’t need a huge amount. Also, people with a good credit score who do not possess a risk are given unsecured loans. If you have a bad credit score then you can be given an unsecured loan but with higher interest rates than other forms of loans.

 

Read more:
What Are No Guarantor Loans?

Personal Contract Purchase

Personal Contract Purchase

Personal Contract Purchase (PCP)

Personal Contract Purchase is a type of Car finance option available to people if they need to buy a brand new car. In Personal contract purchase, you have to pay a deposit amount in order to get the car. The rest amount is paid in monthly instalments over a specific period of time. At the end of your contract, you have the option to return the car or keep it by making a final payment.

personal contract purchase

How Does Personal Contract Purchase Work?

In order to get PCP, you need to pass the credit checks. The lender will look at your credit score, to know how risky it is for him to get in business with you. If you have a good credit score then there won’t be any problem to get this car finance.

After going through the credit score you will need to pay a deposit amount. This amount is normally 10% of the car value. You can get the car after paying the deposit.

But remember you don’t get to own the vehicle, you just get to use it. When you are using your vehicle remember to be within the bounds of your mileage, don’t go over your restricted mileage. If you do, you can be charged according to the extra mileage. So its better to get a deal with a good mileage number.

You should take care of your vehicle as well, no part should be damaged when you use it, otherwise, you have to pay the damage charges at the end of your contract.

When your contract ends you have the option to buy the car or return it. If you choose to buy the car you would need to make a final payment (Balloon payment). This payment is decided on the car’s Guaranteed Minimum Future Value (GMFV), it means it depends on what’s the car’s worth now.

If you decide to not buy the vehicle you can return it to the dealer without any further payments.

 

Things to Consider Before Going for Personal Contract Purchase

There are few things you need to consider before going for Personal Contract Purchase

  • The terms and conditions of the contract. If there are any fees charged
  • How much you would need to pay extra if there is any damage to the vehicle
  • See the repayment plan, how much you are paying monthly and I full. PCP is expensive than most of the car finance options
  • The extra charges you have to pay if you exceed your agreed mileage

 

Things to Remember When You Get in a Personal Contract Purchase Agreement

  • You don’t get to own the vehicle for the agreed duration, you can only use it
  • There’s a mileage restriction on your driving
  • They can take away your vehicle if you miss on your repayments for few months
  • If you want to cancel or end the deal, you can do it when you have paid 50% of the amount of your car value. If you want to cancel it before that you have to pay the difference
  • You will be paying more than any other type of car finance

 

Read more:
How to manage your debts?