Growing ‘Buy-Now-Pay-Later’ Crisis Charity Warns

A group of charities has sounded warning bells over the growing use of buy-now-pay-later to buy goods.

Citizens Advice, a network of legal, money and consumer groups, said many users were getting into debt and struggling to pay for food and bills.

Buy-now-pay-later (BNPL) is increasingly popular among young people buying online, and at some High Street outlets.

However, Citizens Advice said many consumers regretted using it.

The charity network did not want to name BNPL firms, but called for tougher regulation.

It found that 45% of 18-to-34 year olds have used the payment option in the last 12 months.

The repayment option is often advertised at online checkouts as an easy way of splitting or delaying payments on items such as clothing or electronics, with incentives such as it being "interest-free".

However, the charity network said it can be a "slippery slope into debt".

The charity network said that, overall, 27% of UK adults have used these firms in the last 12 months, rising to 37% of disabled people and 45% of people with a mental health problem.

The average person was repaying £63 a month, but CA found almost two-in-five (5.7 million) who have used BNPL in the last year didn't think it was "proper borrowing" and six million didn't fully understand what they were signing up for.

The BBC reported that a lady who signed up for more than she expected is Sharonjit, whose story was cited by Citizen's Advice as an example of the trouble people can get into.

Aged 32, she bought £600 worth of clothes and used a BNPL firm to pay in instalments. She didn't receive the goods and cancelled her payment to the firm while she waited for the issue to be resolved by the retailer.

She said: "The whole thing has been so stressful. I'm constantly on edge. I've just been barraged with calls, emails and letters from a debt collector - all for buying some clothes online.

"The firm said they were referring me on to someone and I had no idea it was a debt collector. I had no idea buy-now-pay-later could [hit] my credit score.

"I've never had issues shopping this way before. But this time it's like as soon as something went wrong they've washed their hands of me."

It found a quarter of consumers regretted paying using these platforms, with consumers frequently saying they cannot afford repayments or are spending more than they expected.

Citizens Advice said firms must overhaul their checkout processes and improve affordability checks.

Alistair Cromwell, acting chief executive of Citizens Advice, said: "Buy Now Pay Later borrowing can be like quicksand - easy to unwittingly slip into and much more difficult to get out of.

"It shouldn't be possible for people to sign up for credit without realising, and the fact this is happening so often signals that a drastic overhaul is needed.

"This industry more than trebled in 2020, and while these products work for many shoppers, the regulator has rightly recognised the potential for harm. It must ensure robust consumer protection keeps pace with changes in how we shop," Mr Cromwell said.

Several big - and smaller - names now operate in the fast-growing BNPL market, including Klarna, Clearpay, and Laybuy. PayPal launched a BNPL service last year.

The charity warned that four-in-10 of those who've used BNPL in the last 12 months are struggling to repay.

Other Money News

City of London Plans To Convert Thousands Of Office Into Residential Units As Workers Stay At Home

Over 50’s Hardest Hit By Unemployment

The Office for National Statistics (ONS) has found older workers are amongst the hardest hit by unemployment over the last year.

The decline in the employment rate for the over-50s has double the rate for those aged between 25 and 49.

The Resolution Foundation added that after losing work, older workers take the longest to return.

The effects of last year’s recession have not fully hit most people. The job furlough scheme, rent and mortgage payment holidays, tenant eviction ban, Stamp Duty Holiday and other government financial stimulus packages have cushioned people from the full blow of the economic downturn.

Similar packages are running in the US and many are coming to an end or about to expire.

Whilst the government needs people to go out and spend to boost the economy, this is not the time to spend £600 of money you don’t have to buy clothes you cannot afford on credit!

Good debt and bad debt.

An example of good debt is borrowing to buy assets, such as a business or property which put money in your pocket.

An example of bad debt is the lady mentioned above or someone buying an expensive car they cannot really afford on credit.

Another example of bad or even crazy debt is borrowing to buy more risky investments such as Bitcoin or shares.

See also:

95% Mortgages are back in the UK - https://homebasedbusinessideasuk.blogspot.com/2021/04/property-news-95-mortgages-available-now.html

Property buyers overpaying to beat the Stamp Duty Holiday -https://homebasedbusinessideasuk.blogspot.com/2021/04/property-buyers-paying-higher-crazy.html

Discover The High Value, High Demand Property Cashflow Strategies That Anyone Could & Should Be Taking Advantage of Right Now!

28-29 April 2021 7PM ONLINE

By attending the Rent to Service Accommodation Summit you will walk away with a clear plan on how to invest and make money from property without mortgages, refurbs nightmares, and tenant headaches!

Skilled trainers will reveal proven, successful methods for you to cash in on right now, even if you have no previous experience or property.

As we are seeing constant changes to the rules in the UK, many people are struggling. There are question marks over what is next. But one thing is certain, Property is still providing opportunity.

Full details

That’s why, the UK’s #1 property education company is taking leadership of the situation and equipping you with the knowledge to succeed. Two of their expert trainers, Kevin Poneskis and Kevin McDonnell, will teach you:

·        How anybody could make a minimum of £1,000 per calendar month from properties that you don't own

·        How you can get consistent full-time income from property without mortgages, refurbs nightmares, and tenant headaches!

·        How to apply this system to almost any property, including properties you don't own. Yes, you can easily manage other landlord's properties for them and collect a large, passive commission thanks to this system

These are some of the best strategies right now and we want you to learn from the very best.

Don't wait, claim your place now!

Full details https://bit.ly/3dTASbr

 

How to make money in property whatever the market

Make money in property whatever the market is doing!

The UK economy fell by 9.9% in 2020, yet property prices went up, and the market is still hot!

House sales and property prices have surged amid government moves to stimulate the housing market.

New data from HM Revenue and Customs (HMRC) showed UK property transactions in March hitting the highest monthly level since modern records began in 2005.

The housing market has been almost immune to the Covid crisis as people rethink their lives and where they want to live.

Official data also shows average UK house prices rose 8.6% in a year.

HMRC figures show that there were 180,690 UK property sales recorded in March, which was more than double the number in March last year and 50% higher than February!

Many people are asking if prices will fall in 2021.

There are a number of factors which could prevent a fall in prices, one of them being the recent launch of a government-back 95% mortgage guarantee scheme to allow people to buy a property with just 5% down.

Another factor is that when governments have pumped billions into the economy asset prices, such as property, have usually risen – as they did after the 2008 financial crisis.

The truth is, nobody really knows for sure. Some experts are predicting a new boom.

In the long term, property has always gone up in value and there is still a massive shortage of housing in the UK.

But what if there was a strategy which enabled you to invest in property without risking your own money and makes money for you whether the market goes up or down?

My friend Kevin McDonnell is hosting a complimentary event tonight to show you the benefits and the potential of creating a property portfolio, without putting your own life savings down. In this webinar, you will discover the beauty of No Money Down Investing!

Kevin is one of the smartest property investors I know and he can show you how he went from broke and in debt to multi-millionaire in a few short years.

Kevin is not worried about a market correction because he will make money in a rising or falling market.

His next session is on Thursday 22nd April

Why is this strategy right for you?

You will leave seeing how invaluable this strategy is, no matter the obstacles that come your way.

You will learn how to gain assets with little/none of your own money and how to create the relationships to do so!

There is so much that people do not understand about this strategy, that is why the No Money Down webclass will be showing you strategies on how to build and grow your property portfolio - without risking your savings.

This strategy is timeless.

If this sounds right up your street then join Kevin on Thursday 22nd April at 7pm when he will reveal how to quickly build and maintain a successful property portfolio.

Don’t miss out - Claim your spot now!

More details - https://bit.ly/3eiiIiA

Property News - 95% Mortgages Available NOW

95% mortgages are back!

The UK government has announced the launch of a new 95% mortgage scheme.

·        95% mortgage guarantee launches today, available on high streets across the country

·        Scheme part of a range of ownership options to help make home ownership a reality

·        New figures show demand for home ownership has soared during lockdown, with nearly 80% of private renters now saving for a deposit

A new government-backed mortgage guarantee scheme, announced in the March Budget, to help people with 5% deposits get on to the housing ladder will be available to lenders from today 19 April 2021, a spokesperson confirmed.

The scheme will help BOTH first time buyers AND current homeowners obtain a mortgage with a 5% deposit to buy a house of up to £600,000 – offering a route to home ownership to those with low deposits.

For more details see https://homebasedbusinessideasuk.blogspot.com/2021/04/property-news-95-mortgages-available-now.html

The government is essentially giving lenders the guarantee they need to provide mortgages that cover the other 95%, subject to the usual affordability checks. In the past, insurance companies provided this guarantee for a premium.

The scheme is now available from major high street lenders across the country today, including Lloyds, Santander, Barclays, HSBC and NatWest and Virgin Money following next month.

In 2019, the government made a pledge to build 300,000 new and attractive homes a year with an investment of over £12 billion in affordable housing over the next 5 years – the largest investment in a decade.

Since 2010, more than 687,000 households have been helped into home ownership through government schemes, but when asked, 69% of private renters and 63% of those living at home who had looked into a mortgage said they cannot find many mortgages with a low deposit.

The guarantee scheme is one of a range of flexible home ownership options available including:

·        Help to Buy

·        Shared Ownership

·        First Homes Scheme.

Figures show that the number of mortgage approvals for house purchases in January 2021 was 99,000 – a 40% increase on January 2020.

The government has helped over 685,000 households to purchase a home since 2010 through government backed schemes including Help to Buy and Right to Buy.

Taxpayers will bail out banks if loans default and they lose money

The higher the loan-to-value, the higher the risk for lenders, as borrowers have less skin in the game and can walk away in the event of a property crash or negative equity.

The mortgage guarantee scheme provides lenders with the option to purchase a guarantee on the top-slice of the mortgage, which means the government will compensate the mortgage lender for a portion of any net losses incurred in the event of repossession. In other words, the guarantee applies down to 80% of the purchase value of the guaranteed property.

The guarantee will be valid for up to 7 years after the mortgage has started and evidence shows that loans are unlikely to default after this time.

However, the scheme is intended as a temporary measure and will be open for new mortgage applications from April 2021 to December 2022.

Lenders can still pursue you for losses after you have been repossessed if they do not get their money back on a ‘forced sale’ – usually at auction.

The government said the current scarcity of high loan-to-value lending is a response to the pandemic rather than a symptom of a longer-term structural change in the mortgage market.

The government will review the scheme towards the planned end date to determine whether extending the period of eligibility for new mortgages would continue to deliver benefits for prospective buyers.

The stamp duty holiday comes to an end in June, prompting fears of a slowdown in the property market. The new guarantee scheme could push prices to new record highs making it more difficult for first-time-buyers to get on the property ladder. 

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Property buyers pay more for homes than the stamp duty saving

Home buyers rushing to beat the June Stamp Duty Holiday deadline could be paying far more for an overvalued property than they are saving on the tax?

Inflated property prices keep hitting all-time highs, despite higher unemployment and the worst recession in 300 years, and buyers are paying over the odds, according to a BBC report.

In one example, a house which sold for £325,000 during the first lockdown is now on the market for £400,000! Three couples are trying to buy it before June despite the fact that they have no need to panic.

I have recently seen dilapidated properties auction sell for £200,000 over reserve, despite needing a minimum of £100,000, and the total outlay being far more than the average price in the area.

Mortgages are proving to be a challenge with surveyors booked up for weeks and lenders becoming choosy about who they lend to. Some sellers would rather take a lower offer from a cash buyer than risk losing a sale due to mortgage issues further down the road.

Stock markets and cryptocurrencies have also hit new highs with buyers jumping on the bull market bandwagon for fear of missing out – FOMO. In my experience, bubbles like these have usually burst leading to market crashes and downturns.

The Dow Jones index has doubled in 5 years and the Nasdaq has almost tripled!

Overseas buyers from places like Hong Kong are helping to push sales of super-prime London property. In 2020, over 200 properties valued at an average of $18 million were sold in London, more than any other city. Upmarket estate agent Savills reported that they have sold almost 100 £5 million London properties.

The Central London property market is unique and a world apart from the rest of the UK, as well as most of the capital. Billionaires can afford to park up to £50 million into a property and leave it empty for years.

The price of an average property in the London area is just over £500,000 and half that for the rest of the country. There are also parts of the UK where you can pick up a house for £30,000!

In fact, since the lockdown started there is a growing trend to move out of the city centres into the countryside creating so-called “Zoom Towns”, where people work from home and hope the wifi is strong enough.

In the UK, GDP rose last month by just under half a percent and EU trade has recovered after a shaky post-Brexit start this year.

How To Start A Money Making Business From Home Without Capital Or Risk

Did you read the story of the man in East London who is making a fortune after starting a home-based business last year when he was laid off from his job during the lockdown?

What was the business?

Assembling flat pack Ikea furniture! Yes, that’s it. No premises, no rent or overheads – pure profit!

During the lockdown, there was a boom in home improvements and like me most people hate assembling furniture. He jumped in, provided a service that people wanted and is making a pile of money putting together flat pack furniture for thousands of customers.

With pubs and restaurants closed for the lockdown in the UK and Ireland it's a reminder of how vulnerable physical businesses, like pubs, restaurants and shops are to economic downturns or market changes.

At the same time, internet business owners are getting richer. Never in history has more goods been bought on the internet.

Even before the pandemic, the high street was already under pressure from online shopping, which has exploded in the last few years.

High rents, taxes and competition from the likes of Amazon and Shopify have driven large retailers, like Debenhams, out of business and forced John Lewis to start closing 70% of its 50 plus stores in the UK.

How does this help you get started online?

The internet has given small home-based businesses an opportunity to compete with the big companies which have dominated the market. They took the best sites in the high street and malls, and often drove small retailers to the wall with massive advertising and undercutting. Fortunately, this has now changed and that’s how you can benefit from the online bonanza.

You can now set up a risk-free online business or store - from home in your spare time - and sell to a potential market of 5 billion people browsing the internet every day looking for solutions to their problems.

You no longer need to rent a shop or premises and pay high taxes and bills before you make a penny. And you don’t have to quit your job until your business income exceeds your salary.

Here are 3 simple steps.

Step 1

Sell solutions to people’s problems

Research your idea or product online – where else! You can check on Google how many people are searching for products or solutions to their problems. For instance, millions of people want to be slimmer and healthier, especially in these times. According to wordstream 450,000 people have recently searched for “how to lose weight” on the internet. Other ‘keyword’ searches like “diet” and “lose weight fast” had similar results. That’s just one niche!

You can literally find out how many people are searching for keyword solutions by checking on Google and specialists like Wordstream and Mondovo absolutely free. Market research like this was previously only available to large companies with large budgets. Now you can access it for free.

You can get up and running with your online business website today for free with GrooveFunnels. For more information…click here  

Step 2

Set up your online business today

Set up an online business selling products that people are looking for (not what you think the market needs), or sell to people online from your existing business, by setting your website online today. You don’t need to pay a designer or software engineer to set up a website, as there are readymade templates and off-the-shelf website pages to get your business started today. In the past, I have spent tens of thousands on websites because they had to be designed and built from scratch, which took months. Fortunately, you don’t have to go through this pain.

You can now build a simple website for free using GrooveFunnels template pages and built-in shopping cart checkout facilities with a click of a button. GrooveFunnels is offering free lifetime access for a limited period only – no credit card required to open and start using your free account. For more informationhttps://groovepages.groovesell.com/a/uy9VcdqIvopT, click here

Step 3

Now decide what you are going to sell and how and GET STARTED!

Decide what niche you want to be in and what you want to sell. Unless you already have your own products and business (which you may want to change based on your new research on what people actually want) you can start by selling other people’s products and services for a generous commission of between 10 and 50%. This is essentially how some of the biggest companies in the world make billions in profits.

Booking.com and Airbnb do not own their own hotels and Amazon helps millions of small retailers and authors sell online for a commission.

If you want to start earning cash today, GrooveFunnels will also pay you a commission to recommend their fantastic free software to your friends, colleagues and customers when you open your free account. Find out how to earn money

Here’s the best part. It’s risk free and no capital investment required! No re-mortgaging your house and borrowing thousands or risking everything to open up a physical business. And you can get started right away. What have you got to lose?

PS. One final thing…this free lifetime access is on offer for a limited period only.

GrooveFunnels only plan to keep this offer open for a short while and will soon start charging at least $99 dollars per month to access the same package you can get for free for life – NO credit card needed…FREE LIFETIME ACCESS.

https://groovepages.groovesell.com/a/uy9VcdqIvopT

#investment #money #taxreturns #makemoneyonline #groovefunnels #FREE

Immigration Matters: Refugee To British Royal Family, The Incredible St...

Immigration Matters: Refugee To British Royal Family, The Incredible St...: Prince Philip, Duke of Edinburgh and Queen Elizabeth II's husband of 73 years, has died aged 99, at Windsor Castle. In a statement jus...

Will Mortgage Repayment Holiday End Lead To Mass Home Repossessions?

The Financial Conduct Authority, has announced that mortgage lenders can enforce repossessions of homes from borrowers unable to make repayments.

As many as 100,000 were on mortgage repayment holidays during the Covid lockdowns, but this came to an end this month. Even more borrowers have not been able to make repayments on loans and credit cards.

The term “repayment holiday” implies that borrowers are being let off, but arrears are added to the loan resulting in higher payments for borrowers already struggling.

Lenders must follow guidance on when to repossess and only use court action as a last resort.

The courts already have a backlog of all types of cases and bailiffs cannot be instructed by the courts until the end of May at the earliest in England and end of June in Wales, which means landlords may will not be able to gain possession of a property for several months.

Those unable to make repayments can no longer apply for a deferral on mortgage, loan or credit card repayments, however. lenders can consider individual cases of hardship based on their specific financial circumstances.

Will this lead to mass repossessions?

Probably not mass repossessions, but definitely an increase and more motivated and distressed sellers.

Unlike previous recessions, interest rates are at an all-time low – but watch out for those big step-up in payments after an initial fixed rate or discount, as well as HUGE FEES being added to the loan and increasing your debt.

In better news for home buyers, lenders can now accept applications for a new Help to Buy scheme in England. This is a less generous version than the previous scheme and is restricted to first-time buyers.

The Chancellor’s new 95% ‘mortgage guarantee scheme’ announced in the budget is due to be rolled out next year.

With stamp duty holiday ending in August and more people coming off the job retention scheme, the long property boom could be coming to an end. The question is whether or not governments can print their way out of the recession, with massive Trillion Dollar financial stimulus packages to prop up weak western economies, and avoid a looming worldwide depression.

Is it Possible To Start A Money Making Business From Home Without Capital Or Risk?

With pubs and restaurants closed for months during the lockdown in the UK and Ireland, it's a reminder of how vulnerable physical businesses, like pubs, restaurants and shops are to economic downturns or market changes.

At the same time, internet business owners are getting richer. Never in history has more goods been bought on the internet.

Even before the pandemic, the high street was already under pressure from online shopping, which has exploded in the last few years.

High rents, taxes and competition from the likes of Amazon and Shopify have driven large retailers, like Debenhams, out of business and forced John Lewis to start closing 70% of its 50 plus stores in the UK.

How does this help you get started online?

The internet has given small home-based businesses an opportunity to compete with the big companies which have dominated the market. They took the best sites in the high street and malls, and often drove small retailers to the wall with massive advertising and undercutting. Fortunately, this has now changed and that’s how you can benefit from the online bonanza.

You can now set up a risk-free online business or store - from home in your spare time - and sell to a potential market of 5 billion people browsing the internet every day looking for solutions to their problems.

You no longer need to rent a shop or premises and pay high taxes and bills before you make a penny. And you don’t have to quit your job until your business income exceeds your salary.

Here are 3 simple steps.

Step 1

Sell solutions to people’s problems

Research your idea or product online – where else! You can check on Google how many people are searching for products or solutions to their problems. For instance, millions of people want to be slimmer and healthier, especially in these times. According to wordstream 450,000 people have recently searched for “how to lose weight” on the internet. Other ‘keyword’ searches like “diet” and “lose weight fast” had similar results. That’s just one niche!

You can literally find out how many people are searching for keyword solutions by checking on Google and specialists like Wordstream and Mondovo absolutely free. Market research like this was previously only available to large companies with large budgets. Now you can access it for free.

You can get up and running with your online business website today for free with GrooveFunnels. For more information…click here  

Step 2

Set up your online business today

Set up an online business selling products that people are looking for (not what you think the market needs), or sell to people online from your existing business, by setting your website online today. You don’t need to pay a designer or software engineer to set up a website, as there are readymade templates and off-the-shelf website pages to get your business started today. In the past, I have spent tens of thousands on websites because they had to be designed and built from scratch, which took months. Fortunately, you don’t have to go through this pain.

You can now build a simple website for free using GrooveFunnels template pages and built-in shopping cart checkout facilities with a click of a button. GrooveFunnels is offering free lifetime access for a limited period only – no credit card required to open and start using your free account. For more informationhttps://groovepages.groovesell.com/a/uy9VcdqIvopT, click here

Step 3

Now decide what you are going to sell and how and GET STARTED!

Decide what niche you want to be in and what you want to sell. Unless you already have your own products and business (which you may want to change based on your new research on what people actually want) you can start by selling other people’s products and services for a generous commission of between 10 and 50%. This is essentially how some of the biggest companies in the world make billions in profits.

Booking.com and Airbnb do not own their own hotels and Amazon helps millions of small retailers and authors sell online for a commission.

If you want to start earning cash today, GrooveFunnels will also pay you a commission to recommend their fantastic free software to your friends, colleagues and customers when you open your free account. Find out how to earn money

Here’s the best part. It’s risk free and no capital investment required! No re-mortgaging your house and borrowing thousands or risking everything to open up a physical business. And you can get started right away. What have you got to lose?

PS. One final thing…this free lifetime access is on offer for a limited period only.

GrooveFunnels only plan to keep this offer open for a short while and will soon start charging at least $99 dollars per month to access the same package you can get for free for life – NO credit card needed…FREE LIFETIME ACCESS.

https://groovepages.groovesell.com/a/uy9VcdqIvopT