Pricewaterhouse Coopers said in a report that this search for a new means of finance coincides with a change of lending attitudes from the banks in the East as they increase the scope of their lending and expand market share.

International borrowers are looking for good deals that can offer them the most attractive terms, they do not mind who they borrow loans from, their main priority is to avoid another liquidity squeeze as experienced in the credit crunch.

When banks are considering lending money it is very important that they do not make their decision making process over centralised, tick box or removed from front line.

It has become apparent that good businesses are being turned down for credit and quick cash. This has led to a record number of complaints to the Financial Ombudsman Service. There have been an increase of 119% complaints regarding small business loans in the last year.

A campaign is being launched to demand action to stop legal loan sharking, and Ministers are considering capping interest rates.

The government has already curbed the rates charged on credit cards and store cards. However, at the the moment lenders can charge any amount for credit, sometimes this is as high as a charge of £82 for every £100 lent. Annual charges of 2500 % are quite common these days too. When consumers borrow at these rates it traps them into a circle of debt and poverty.

It is estimated that 3 million people take out expensive door step loans, many of whom end up speaking to the Citizens Advice Bureau for help with controlling their money.

Hopefully this campaign will help people control their finances and obtain quick cash at a reasonable rate.

An independant study has been carried out for the Northern Ireland Council for Voluntary Action (NICVA).  The results indicated that people living in Northern Ireland would be hit pretty hard for up to the next 10 years.

The report also suggested that budget cuts could be up to £1.2 bn over the next 5 years.

In April budget cuts for 2010 were detailed at £367m.  Further cuts will be necessary in the Autumn of 2010 when the government announces its plans in the Comprehensive Spending Review.

The report predicts that Northern Ireland will be hit the hardest.  They employ 31% of people in th epublic sector compared with 25% in the UK as a whole.

Executive Ministers are still considering where to make the cuts, however on the basis of the report it seems that job losses and wage cuts are very likely. 

Will this result in more families needing to obtain quick cash and taking out more finance that they can’t afford?

It is thought that next years VAT rise of 2.5 percent will cost the average Scottish family around 380 pounds a year.  A freeze in child benefit means that around 620,000 families will lose out in Scotland.  The report also suggest that families earning over £25,000 will see their benefit entitlements cut next year as a result of the child benefit freeze and restrictions on child tax credits.

John Swinney who is a  spokesman for Scottish Finance said that the report underlined the case for Scotland being given responsibility for its own finances.

A Scotland Office spokeswoman said that the budget was tough but fair.  She also said that we are now making tough unavoidable decisions which we hope will strengthen and unite the country.

It is very concerning that poor people will be hit hard with yearly household bills rising by up to £400.  Will this result in more people needing to take out payday loans to pay their regular bills?

The UK should consider reducing the availability of loans to households and businesses to create a more stable economy, the regulator said tonight as he prepared to ban “self-certified loans” used by the self-employed.

Turner also set out a plan for structural reform in regards to the issue of credit that had become too easily available during the boom and too hard to obtain in the bust. He in known for once having said that parts of the financial system were “socially useless”. He is also against City bonuses.

The FSA has decided against an idea raised in the mortgage market review discussion paper last year to set a maximum loan-to-value ratio on mortgages. Such a move would have ended mortgages worth 100% of the property’s price.

Lord Turner also asked whether the new body should be able to ban specific products as “inherently undesirable”, saying its creation should provide a “major opportunity” to make the most informed choice.

He was quoted as saying “We are signalling a significant change away from that approach, but the shift is not a purely technical issue which can be left to technicians; it is a social and political choice which should merit extensive debate.”

What do you think? Surely it’s up to US to decide whether we can afford credit or not? Will we soon be following some US states and banning some types of loan (Payday Loans & Advances etc) Do we need a Lord to tell us?

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Let me start by introducing myself. My name is Sam Peppercorn and i am an expert in the field of finance. I write content and news articles about a varierty of subjects in the field of personal finance. Primarily i have been specializing in short term loans at the minute but i have extensive knowledge of secured loans and debt management and IVAs as well.

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