This is actually excellent news all round anyway, because countries who have the Euro as their currency have really struggled with a lack of tourism and desperately need British holiday makers to boost their economies.  The ongoing crisis in Europe has strengthened the pound, offering great benefits to the British travellers.

The current exchange rate means that holidaymakers who go to European countries that use the Euro will get an additional 19 percent for their money which equates to around ninety five pounds extra money for every five hundred pounds worth bought.

Welcome news indeed for those who want to go away but are still feeling the pinch after an expensive festive period. Hotels, food and drink, clothes and travel are all now considerably less expensive making it easier for families and business travellers alike.

Statistically the number of holiday makers who have travelled to Spain increased by nearly nine percent last year and the cost of resorts have remained stable.  Spain offers good value for money and is ahead of other European countries in this area.  Other Spanish resorts such as the Balearic Islands also look as if they can compete with the Euro zone countries by offering travellers great value in exchange for the money they spend. Greece on the other hand is more expensive, almost twice so for the same things in Spain.  Given the economic crisis there, it could be that they will be forced to cut costs to draw in holiday makers and boost their economy that way. It is expected that Portugal will follow as they gain a great deal of money from holiday makers.

As always the usual tips apply when exchanging foreign currency.  Shop around and avoid exchanging money at the airport or ferry terminal as you will get a much worse rate, despite the improved Pound to Euro exchange rate.

Even the best-laid plans can sometimes not be enough to cover an unexpected expense. Even if you have savings, it can be a good idea to take out a loan as opposed to wiping out your hard-earned nest egg. Interest rates are currently low, which is bad news if you are looking for a good return on your savings, but not so bad if you are looking for a good deal on a loan.

There are different kinds of loans available that vary according to how much you want to borrow and for how long a period. You should shop around for the best interest rates to make sure you get the best deal possible. Other factors, such as your credit history, will also dictate the type of loan and terms and conditions that are available to you.

If you already have a loan, but suspect that you are paying more than you need to, there is nothing stopping you from changing lender, although there may be penalty fees for settling your existing loan early. Don’t assume that your bank will always give you the best rate. Check online using a comparison website that will show you a selection of like-for-like quotes.

By providing a comparison website with a few details of your requirements and circumstances, you will be able to see a list of lenders who will provide you with the amount you need along with details of the interest rate, the monthly repayments and the total real cost of the loan. If you see a loan with lower monthly payments or perhaps want to change the term of your loan (make lower payments over a slightly longer period) then this will be easy to arrange.

Short-Term Loans

If you have simply overspent or have an unexpected but relatively low expense, then you could consider a short-term loan. You could initially discuss arranging an overdraft with your bank but before going ahead, check this against the costs of other forms of finance.
Interest rates on short-term loans tend to be higher than on larger long-term arrangements so be realistic when deciding how long you need to repay the loan.

Long-Term Loans

These are generally for larger amounts over a longer term and it really pays to shop around for these types of loan. Use a comparison website to see the terms offered by a broad selection of lenders.
It is often more revealing to look at the total amount payable rather than the interest rate to get an idea as to how much the loan will cost in real terms.
However, do not be tempted to overstretch yourself with the monthly repayments just to pay a lower credit fee. It is better to pay a little more in credit fees in the long term than to get yourself into financial difficulty trying to pay off loan on terms that you might struggle to meet.

How does the DRO work?

The debt relief order will help to fast track some of the less complicated debt cases through Court without requiring you to attend. During the period of the DRO, you won’t have to make any payments towards the debts listed in the order, which normally lasts twelve months. The creditors of these debts won’t be able to take any action against you during this time and after the 12 months the debt will be cleared.

How to apply for a DRO

You can apply for a DRO online with an official intermediary who will help you complete your application. There is a cost of £90 which can be paid in instalments over six months. When the Official Receiver receives your application form and fee, the order will usually be made administratively without having to go to court if all the requirements are met.

There are strict criteria when applying for a debt relief order. You won’t be able to apply if you have a vehicle which is worth more than a thousand pounds or have any savings or any assets worth over three hundred pounds.
Furthermore, only certain type of debt (also known as qualifying debts) will be considered in a debt relief order including:

1. Loans, overdrafts and credit cards
2. Council tax rent and telephone utilities,
3. Social fund loans and benefit overpayments
4. Conditional sale or hire purchase agreements
5. Buy now and pay later agreements.

You will still have to repay any debts that the debt relief order does not include.. You can only apply for a debt relief order once every six years.

What happens during the DRO period?

You will still need to pay your usual household expenses such as rent, gas, electricity, Council Tax and water charges. Other debts that are not included in the debt relief order will also have to be repaid. You will have to tell the official receiver about any other new debts you have for the duration of the order.

Things to Consider before taking out a DRO

There are consequences of a debt relief order as part of a debt management plan which should be considered before taking one on. Your credit file will show the debt relief order for six years and may harm your chances of getting future credit. You may also find it more difficult to open a bank account once you have a DRO. There will be also strict restrictions on your financial activity during the period of the Order.
There are benefits to a debt relief order too. The main one is that your creditors will not be able to get their money back through legal action. When the debt relief order comes to an end all of the debts listed in the order will be cleared.
You may have other options for dealing with your debts besides applying for a debt relief order. A debt advice company will be able to give you further information on debt relief orders, debt management plan and bankruptcy procedures.

For further information on debt relief orders we suggest the following resources / services:

• Consumer Credit Counselling Service – Find out if a DRO is suitable for you and get information on costs and how to apply.
• The Debt Advisory line – Detailed explanation on Debt Relief Order as an alternative to bankruptcy
• MoneySavingExpert.com Forum – Useful forum thread on MSE with information on DROs

Payday loans, on average, are for around £300 and the borrower repays them when they get paid. This can help out with additional expenses during the month and can also help people who do not have the best credit history.

You can apply online for payday loans, this means that the money will be deposited in your bank account very quickly. This might also reduce the checks that need to be carried out to verify income or your credit history.  All that happens is the money lender takes the money out of your bank account when you get paid.

Another way of getting a payday loan is to go to a store that offers this service. The borrower just takes their proof of employment and income such as payslips and bank statements. They then write a post dated cheque for the amount they wish to borrow plus the fees that the loan will incur over the borrowing period. On payday the borrower can either go into the store and repay the loan in cash or the money lender will deposit the cheque.

This type of loan is ideal for people on low incomes who do not always have the best credit history and so may not qualify for a bank overdraft.  Although the interest is higher than a personal loan or overdraft it is a short term solution to financial difficulty. Money lenders argue that because the loan is only short term then the interest charged, although higher, is not too much because of the short time it is borrowed for.

When compared to a personal loan it means that the borrower can borrow less money over less time. The checks involved with payday loans are less than with a personal loan meaning the borrower can get the money they need far quicker than if they applied for a personal loan.

A personal loan may be a better option for someone who is looking to borrow more money over a longer time scale but a payday loan can be ideal for many in the short term.

One of the main advantages of payday loans is that you can get instant approval, meaning you can get your money quicker. The way payday loans work is that the financial service offering the loan will take a post dated cheque from you and you are expected to pay the money back before that date.

It really is that simple; you can usually apply for your loan and get a decision instantly. This is much better than applying for a personal loan as the process is shorter and fewer checks are made. This is because the payday loans companies have got their system working efficiently. This is what they do and they do it well. They have the capability of carrying out instant checks meaning that you will get your money much sooner.

Some of the criteria that you will need to qualify include:

• Are you over 18?
• Are you in employment?
• Do you have a debit card and a bank account?
• Are your wages paid into your bank account?

If you can say yes to the above questions then you will more than likely be approved for a payday loan. A credit check will be carried out, but even if your credit history is not the best it does not preclude you from payday loans.

The cost involved with payday loans is higher than personal loans or an overdraft.  The critics of payday loans say that low income families are being targeted by money lenders with the promise of getting money quickly but that the costs they have to pay don’t make it worthwhile.  For example if you borrowed £80 you would typically repay £100. This is the choice you will have to make.

While there are costs involved and the interest is higher than other money lending options the loan is very short terms so the amount of interest that can be accrued is minimal.  That isn’t to say that it is a cheap option, but it is a good options for those months when ends won’t meet and can often be in your bank account the same day.

Over the last six years there has been a huge increase in outstanding peer loans. There is no middleman to help those who are looking to borrow money with those who have want to invest money. When the global economic crisis hit, peer loans started to increase massively. This occurred because people were finding it very difficult to get credit from banks and more traditional money lenders.

The reasons for getting a peer loan vary. Some people would like to pay for education, pay off their mortgage, pay vet bills, holidays, weddings etc. The most popular loan is debt consolidation. One of the main reasons why people look for peer loans is because of the better interest rates that are available. The lenders also benefit because they get a better return on their investment than they would if they had savings in the bank or other investments.

So how do they work?

• The borrower choose how much they would like to borrow, state what it is for and then post a loan listing.
• Investors then review the loan listings and if the criteria they are looking for is met then they will invest.
• Once the process has been completed, borrowers make monthly payments to their investors and this is enforced by a promissory note.

These benefits are due to disintermediation, the low overheads compared to the more traditional financial institutions that have many employees and expensive locations. The lack of administrative procedures with peer loans has the added benefit that the loan application time and the transfer of the money takes much less time so both the borrowers and the lenders can get to their money much more quickly.

As peer loan companies and their client base keep growing though, the expenses involved are increasing. Administration and marketing expenses, developing websites which will stand out from competitors and draw in customers as well as having to comply with legal regulations means it has become more complicated. This means that peer loan companies are becoming more like banks.

Peer to peer lending may also attract borrowers who, due to their poor credit status or lack of any credit status at all would not fulfil the criteria to borrow from the bank or building society. Peer loans help such people avoid the perils of loan sharks or predatory lending, which have extortionate interest rates. Although it must be noted that for those with very low credit scores some peer to peer loan companies have begun to turn these potential borrowers away.

What reason people have for getting a loan vary. Some people would like to pay for a wedding, a new car, university tuition, hospital bills or make some home improvements. They may also want to consolidate some of the debts they already have. The list is endless but people are finding it harder to get credit nowadays so peer loans can offer an alternative to traditional lending.

The way a peer to peer loan works is that borrowers and lenders use tools on a peer loans website to complete financial transactions among themselves at a rate that both parties are happy with.

The borrower posts on the website how much they would like to borrow, what they need the money for and the rate they are willing to pay for the loan. They then get their friends in the network to view the listing.

The investor/lender then gets an invitation to view the listing, assesses the proposition and makes a decision whether to invest or not.

Once the loan is fulfilled, the peer loans company compiles the promissory note and gives it to all involved parties.  The company will also deal with on-going notifications and provides access to online payment systems to ensure a smooth repayment process.  The promissory note is an important document which is a written promise that the borrower will pay the lender the money owed. This note also contains the specifics that the borrower and lender had agreed upon such as the total loan amount, the repayment time frame, how much the interest rate will be, the monthly payment cost. All parties involved will sign the document to ensure it is a legal instrument.

Peer-to-Peer Lending is a fairer alternative to a bank loan as the interest rates are lower for the borrower than they would be from a bank for example but there is a higher return for lenders compared to having money in a savings account, so everyone benefits

Peer loans work well because of disintermediation. The overheads are much lower when compared to the more commonly used financial institutions. These have to pay many employees, property expenses as well as running costs.

A further benefit is that due to the  lack of administrative procedures involved with peer loans, the time needed to complete a loan application and the money transfer takes much less time than traditional loans, which means the borrowers and lender can get to the money they want in a much more timely way.

The problem with paying in cash though is that you may clean out all your savings and you may be without cash funds in case of emergencies.  When you pay for your car in cash, you are paying for an asset that will lose value over time. You could be using that cash to make you money.

A lot of people decide to pay for their cars through financing. You can get car credit from the car dealer, the bank, credit unions or other financial companies. Some of the best things about car loans are that you free up the money you have to buy other expensive items by using someone else’s money to finance your car purchase.

There are some really impressive car loans out there. These tend to be from the car showroom dealers or the car makers themselves. Some of these deals can be almost the same as if you were paying by cash. Some deals don’t require you to pay any interest at all, something which you don’t tend to find very often.

Of course the car loans available often depend on your credit score. If you have a high credit score then you will not have a problem getting a loan. Should you have a low credit score then car financing can be hard to get. Most people however have a fair to good credit rating and should not have much difficulty getting financing, or may be offered a short loan term at a higher rate of interest.

There are downsides of car loans. They often require a considerable deposit, the monthly repayments may also be considerable, particularly if you have a poor credit history. This will impact your monthly disposable income. Great consideration should be taken before you commit to a series of costly monthly payments.

There is no right or wrong way when deciding on cash or finance when purchasing a car. Everyone has their own preference but the above points should help clarify some points.

Most people would like to be in a position to be able to buy their car outright with cash. The benefits are obvious; there would be no monthly payments to budget for, the car would be yours from day one and you are free to sell it as and when you please. However for the majority, this is not an option as they just do not have the money available.

A lot of people decide to pay for their cars through financing and car loans can be an ideal way of doing so. If you look around you will find some pretty good deals on car loans. Most of these usually come from the car manufacturers or car showroom dealerships. There are a number of financial deals available including a number of car dealers that will give you 0% interest on the car loan but you tend to have to pay a substantial down payment before you can get it.

The car loans that will be available to you will usually depend heavily on your credit score. A high credit score will give you access to more advantageous car loans. A low credit score means that less money lenders will be willing to take the risk of lending you money as you may have missed payment in the past so they may be concerned you would default on your car loan payments. Many people do not have a poor credit history though so would not find it too hard to get a car loan. Even people with a poor credit history should be able to get a loan though but it may be on different terms and usually with considerably higher interest.

There are also negative aspects of financing your car purchase with a car loan. Apart from the sizeable deposit that could be required, you will be making monthly repayments which could take up a considerable part of your disposable income each month. This is particularly the case if your credit score is not the highest. Furthermore, the car won’t actually belong to you until you have finished all the repayments which could affect the sale of the car should you decide to sell it during the loan period.

There are a number of financing options available, car loans being just one of them. It may be worth contacting a financial advisor to help you make the best decision.

However, even with the credit crunch it is possible to find responsible companies that will offer you bad credit loans even if you have a poor credit score. It may not seem easy at first but if you look around there are bad credit loans available, even if you have been turned down by the usual money lenders such as banks and building societies.

You may have had credit problems previously, got into mortgage arrears, defaulted on repayments or have CCJS. Some people struggle to get loans because they have never actually had credit in the past so have no credit history. This can be a very frustrating catch 22 situation, you simply cannot get your foot on the credit ladder, and you haven’t done anything wrong.

There are ways you can build up a credit history nowadays, including special credit cards but in the mean time if you need a loan and you have a bad credit history, you could struggle.

Bad credit loans can help you build up your credit score whilst giving you the money you need. So what are bad credit loans? They are unsecured loans, especially designed for those people who have bad credit history, so who may find it hard to get credit from the typical high street money lenders. The loan is just like any other in that you repay the money over a set time scale but are different in that the interest you pay is much higher because of the risk the money lender takes when they loan you the money.

With bad credit loans you can expect to pay interest ranging from anything from 30% APR to 182% APR, it may even be higher depending on who you borrow the money from. Bad Credit Loans are not intended for long term regular borrowing but for short term financial need.  They should not be seen as a regular way of borrowing money and as they are so expensive you probably wouldn’t want to.

One of the good things about bad credit loans is that whilst repaying your loan you are building your credit score up again which should allow you to be able to access cheaper loans in the future.