Hugely expensive credit deals are being pushed by companies capitalising on the need of cash-strapped households to find money quickly in the run-up to Christmas.

Provident Financial, the credit-pusher giant that specialises in lending to those on low incomes and those without bank accounts, has blitzed tens of thousands of homes with junk mail loan offers.

The typical rate of interest charged is 177%, though for some borrowers it could be more than 300%.

'If you've realised you need extra cash for Christmas, don't worry,' gushes Provident's offer. 'Don't miss out on the Christmas you want!' The mailings contain its much-loved gimmick of a fake cheque made out to the addressee, with the words: 'Turn this into CASH - NOW!'

Other firms are offering even dearer credit, with the APR running into thousands or, unbelievably, tens of thousands.

Paydayuk.co.uk, for instance, charges borrowers £50 for a loan of £200, which for short-term borrowing is an APR of more than 22,600%.

Another deal is from uncle-buck.co.uk, which charges borrowers £75 for a one month loan of £250 - making a total repayable of £325. This works out at an APR of 2,339.3%.

Rival lender 4cashnow.co.uk offers similar deals. Here, borrowers write cheques to 4cashnow.co.uk, which advances the money immediately, but only banks the cheques on the borrowers' next payday. This can be expensive. Borrowing £170 for one month, for instance, costs £30, which gives an APR of 578%.

Several other online companies, such as yesloansuk.com and payday-express.co.uk, offer similar deals. They target those who cannot borrow elsewhere.

Mainstream credit-pushers, including Tesco, are also greedily vying for seasonal business. Many have cynically bought advertising rights to words such as 'Christmas' to ensure that when borrowers-search the web for loans, their deals come up first.

Typing the words 'Christmas credit' into Google, for instance, brings Tesco's Christmas loan offer to the top of the list. Tesco promises: 'Pay nothing for two months and enjoy the Christmas you've dreamed of!' But borrowers do have alternatives to companies such as Tesco that push credit for profit.

Credit unions, which are run on behalf of their members, offer loans at a rate that by law cannot exceed 2% a month of the outstanding balance, but many are far cheaper than that.

Though unions traditionally required members to save with them first before they could borrow, more than 100 offer instant credit to new members.

'They particularly suit borrowers needing smaller sums over shorter terms', says Mark Lyonette, chief executive of the Association of British Credit Unions.

Borrowers must qualify for credit union membership, which is usually based on a member's occupation or where they live.

Most people are eligible to join a union, Lyonette claims. Provident Financial spokesman David Stevenson says: 'We are not lending to the poorest of the poor. Our agents are paid on what they collect, not what they lend, so they are not incentivised like some other lenders.'

Tesco insists it has not paid for the search word 'Christmas' to flag up its deals, but says: 'We use easily recognisable terms such as cash and credit to speed up searches.'

Bad credit or adverse credit is a sign of danger for borrowers applying for loans. Bad credit attaches to you due to defaults made by you in repaying your debts on time. It can be due to unpaid bills, late payments, arrears, CCJ's and IVA's taken by you in the past and many such reasons. The situation becomes worst to handle when along with bad credit you are also carrying large number of debts with you. Making repayments of those debts can be troubling job for you affecting your budget as sometime it leads you to pay more due to miscalculations. You can cope up with all such financial troubles with the help of an adverse credit debt consolidation loan.

Adverse credit debt consolidation loans are loans meant for people facing the trouble of bad credit and want to consolidate their debts with help of debt consolidation loans. These people face trouble in applying for standard loans due to their adverse credit. Adverse credit debt consolidation loans helps you consolidate all your debts by paying them off with the loan amount. These loans ensure you easy repayments as the interest rate on these loans are much lower than what you are paying in total on all your debts at variable rates. So you are left with a single easy monthly repayment at the end of the month.

However, there are measures which you can take along with adverse credit debt consolidation loans to get rid of your debts such as:

*Attend credit counseling

*Take the help of debt management programs

*Lesser use of credit cards

*Don't spend more than what you can afford

*Prepare a budget for your monthly expenses

*Negotiate with lenders for interest rates and repayment terms

Adverse credit debts consolidation loan lenders are easily available in the market. Searching among these lenders may seem a tiresome job if you are thinking of personally visiting all these lenders. But here is the solution; you can easily search for adverse credit debt consolidation loan deals through internet. You can log on to the websites of the loan lenders where you can get the free adverse credit debt consolidation loan quotes and compare them with the help of comparison tools available. After you have chosen the loan package of your choice you can fill the application form with apt details for applying for an adverse credit debt consolidation loan. These details are related to your personal information, loan amount required, residential status and employments status along with an idea about your credit score. Your loan will be approved once the lender is satisfied with your details.

Adverse credit debt consolidation loans are the apt financial support you need to combat all your debt related troubles making your smiles grow longer.

Debt consolidation is often a last resort for people who are in extreme debt and trying to avoid bankruptcy. Many people who are not in danger of bankruptcy, but have debt on high interest credit cards may also choose to consolidate their debt. Debt consolidation is defined as the process of organizing loans and debts into one low-interest loan that can be paid off regularly. Consolidating debt can help someone avoid bankruptcy, and help them manage their money more wisely. Debt consolidation is also convenient because it becomes easier to keep track of debt and one is only required to pay off one loan rather than several debts. In order to consolidate one’s debt, collateral must be given. The collateral is usually the home, or a vehicle.

Central to debt consolidation is a debt consolidation company. It is important to choose the best company to fit your financial needs. As is common in any financial sphere, there are reputable companies, and companies that use underhanded methods to gain more money from the customer. Most debt consolidation companies do use honorable methods, but it is still important to know what some underhanded companies will do.

1. Some companies will wait until you are backed into a corner. If you know you are headed for financial trouble and wish to consolidate your debt, make sure your company starts working on it right away. Some companies will delay in debt consolidation so that the customer gets in more debt and therefore has to pay the company more money in the long run as well as short term. A customer who has to consolidate debt or else face bankruptcy can be forced to pay extremely high refinancing fees or debt consolidation fees.

2. Some companies will also charge exceptionally high debt consolidation fees to people who have high interest loans. Sometimes these fees can be extremely close to, or at the state maximum for mortgage fees. It is important to know how much companies are able to charge you, and compare that to what a company is offering. The lowest price is generally the best idea. Always be on the look out for unnaturally high fees because some companies will attempt to scam you.

3. Last, and certainly not least, you should be aware of companies practicing “predatory lending.” Predatory lending is a practice by some unscrupulous companies to allow their customers to become so in debt that no other company will help them. This is a way that a company can control you and make sure to make significant financial gains from your misfortune. Any debt consolidation service that attempts to control you is not a good service.

The decision to consolidate one’s debt is a very important decision. It is important to understand this fact when looking for a company. Knowing how companies will try to make extra money at your expense is imperative to having a successful debt consolidation experience. Choose the best company and you will notice a positive outcome. Debt consolidation is a wise option for people with nowhere else to turn, but it must be a well-thought-out, educated decision.

Credit that cannot be managed or is not being repaid requires debt consolidation. Debt consolidation offers borrowers with a chance to repay their high interest loans at low interest rate. You must be thinking, ‘it sounds good, but how is it possible.’ How can high interest loans repaid at low interest.

This is how debt consolidation works – it replaces multiple unsecured loans with single loan. As compared to several different loans, you obtain one single low interest rate loan. The single monthly payment on this loan is divided to repay the individual loans. This will also make your debt situation manageable. Debt consolidation should be accompanied with low interest rates; otherwise debt consolidation doesn’t make any sense.

It is almost mandatory to find debt consolidation with low interest rate. Otherwise, it would mean financial mishap of the worst kind. You might end up paying more in the long run. Debt consolidation plan can have serious shortcomings to if the plan is not carefully structured.

Finding a good low interest debt consolidation is not always easy. However, an extensive research can certainly open ways to find one. First of all it is important to understand that your financial situation is unique, so what works for your neighbour might not work for you. Your debt consolidation plan will be as unique as your financial status.

While looking for debt consolidation, keep in mind why you are looking for debt consolidation. You are trying to cut off your monthly payment, looking for low interest rate, low fees and a loan term that does not stretch beyond a few years. A longer loan term with low monthly payments would mean paying more. A debt consolidation loan should not stretch beyond 3-5 years and maximum upto 10 years. There are numerous companies offering debt consolidation online. Settle on the company which offers low interest rate debt consolidation with least hassle.

A way to debt consolidation is through credit cards. This debt consolidation would not require you to place collateral, so it can be a good option. Good credit history would provide you with low interest rate. Ask your current creditor what interest rates would be offered, in case you transfer balances from other credit cards to theirs. A low rate that is fixed with no transfer fee would be ideal. Otherwise, shop for a new credit card. However, don’t go overboard with your credit search. Numerous credit applications would have a negative impact on your credit report.

You can use equity in your house for debt consolidation at low interest. A 100% refinance would tap the equity in your house to repay loan and bills. Refinancing at low interest rate would mean getting rid of high interest rate loans with low monthly payment. Another way to tap on the equity is equity home loans. Home equity loan with fixed interest rate over a fixed period of time is an option. Also, you can take up home equity line of credit. Here you borrow upto a pre approved credit limit and borrow more if you still have money. These loans are offered with low interest rate and good repayment options and have great deals. With home equity loans, however, there is always a risk of losing the property if you fail to repay.

A debt consolidation loan that is unsecured would not come with low interest rates. Since you are offering no security, they imply risk to the loan lender. A loan lender would try to minimize his risk with higher interest rate. But with good credit, you might find exactly what you need. Try to look for another way to debt consolidation if interest rates are high. Calculate the cost of the entire loan term, before you settle on a debt consolidation loan.

Debt consolidation sounds like a very beneficial proposition to most of the borrowers but it may not always be good for ‘your’ finances. It is possible that with debt consolidation you end up paying a lot more interest rate. It is very essential to know whether debt consolidation is serving the purpose it is opted for, mainly, lowering interest rates.

Debt consolidation works as a boost to your credit situation. If you are looking for debt consolidation, you would be treated favourably because you are making an attempt to repay. And if you make your repayments on time, you will certainly be improving your credit. A positive credit history would make room for better finance options.


Debt consolidation in most of the cases is a good idea. But you need to be disciplined with your finances, henceforth. So, when you have finally opted for debt consolidation – no more loan borrowing. You don’t want to get deeper into debt. Without a plan and self restraint, debt consolidation won’t work. Debt consolidation with low interest rate would apply if you have only one thing in your mind – getting out of debt.