Is it safe to borrow money?

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Is it safe to borrow money?
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This is a paid article on behalf of Creditspring

A public debt charity has warned that a staggering number of households are turning to credit cards and loans this winter “to bridge the gap between their income and spending”.

As electricity bills rise and the cost of living rises, it is reported that a whopping two-fifths of people are already overdue on one or more of their household bills. The enormous financial pressure on people across the county is growing alarmingly. Almost a fifth of low-income families now owe money to high-net-worth lenders. According to figures from the Bank of England this year, more than 14 million people are locked out of mainstream financial services because of a poor credit rating – and the number is rising fast.

The battle to free people from dangerous loan sharks and unaffordable loans is bigger than many of us realize. Many people sign up for a level of credit they can’t afford and quickly find that one repayment will put them even further into the red. High-cost lenders typically don’t care about borrowers’ financial well-being, which has disastrous consequences for people’s finances, often pushing them into an inescapable debt spiral.

Instead of adequate government support, the onus is now on lenders to ensure that they lend responsibly and protect borrowers.

Enter Creditspring

Credit Spring.

Creditspring was launched in 2016 as a new type of responsible lender and has been disrupting the credit market ever since by making loans simple and secure. It provides affordable loans to people in the near-prime segment and provides tools to improve their long-term financial stability.

It has a subscription model – a fixed-cost, low-risk loan solution that gives members access to two loans per year with clear repayments, limited costs and no hidden fees or unclear annual percentage rates. Think Netflix loans – you know exactly how much you’re paying and that number is fixed.

This model also means that people know the cost of the loan in advance and, importantly, there are no late fees. This makes it easier for people to assess the real value of the loan and eliminates the risk of falling into a debt spiral.

Creditspring’s way of working and offering loans is especially important now that the country is in a period of national financial instability. This allows people to access responsible credit without the risk of financial harm – something not often available to ‘closer’ borrowers.

Is there ever a situation where borrowing can be “safe”?

“It’s important to be aware that using credit, especially for major expenses, carries risks, especially for people with less financial stability who may find that the only option available to them is a high-cost loan,” said Sue Anderson, Pres. -secretary of StepChange charity organization.

However, very few lenders take this into account. To ensure safe lending, Creditspring uses in-depth credit scoring, including open banking technology, to accurately measure an applicant’s creditworthiness. This results in consistently more informed and responsible lending decisions that protect borrowers.

It also has several free tools, such as Stability Hub and Spring Score, which provide members with weekly personalized support and actionable advice to help them make more informed financial decisions. Creditspring works closely with leading charity StepChange to ensure professional financial support is readily available to applicants and members when they need it.

The Benefits of using Creditspring

By avoiding high-cost lenders, Creditspring saves its members an average of £117 in borrowing costs each year, which amounts to more than £17 million across its member base. In addition to people saving money, 90% of members improved their financial stability and 82% improved their credit rating after joining. A good credit score has an impact on other areas of financial well-being, for example, it can make it easier to get a mortgage with more competitive rates.

Creditspring has a 4.8 rating on Trustpilot, which is in stark contrast to research findings that show a third of people believe lenders are deceptive and dishonest. Comparing these two statistics shows that Creditspring is indeed a lender that does it differently. It is a lender that is disrupting the market and building trust with UK borrowers by prioritizing their financial wellbeing.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore the information contained herein, including opinions, comments, suggestions or strategies, is for informational, entertainment or educational purposes only. This should not be construed as financial advice. Anyone thinking of investing should do their own due diligence.





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