From ridiculous interest rates of 1000%+ to poor customer service and tactics bordering on bullying, pay day loan companies get a bad rep.

Image: Philip Taylor PT (flickr)

Putting aside the morals of whether or not they should market quick cash and no credit checks to people with bad credit; they sure don’t make it easy for themselves!

I’ve compiled a list of my five favourite payday loan offers which definitely do not paint them as reliable and trustworthy lenders, with some of them bordering on unethical. Are you ready to be shocked by the marketing tactics these companies employ? Keep reading…

1. The price of love is 1,737%*

Payday lending website Cash Lady was offering up to £300 to make Valentines Day one to remember. Borrowing the £300 for 31 days would mean interest of £75, adding up to a total repayment of £375. Nothing says I love you like 1,737% interest!

2. Don’t put all your eggs in one basket*

If you’ve put all your eggs in one basket over Easter, never fear because Speed E Loans is here to help. I’m not sure how many Easter eggs you could possibly have bought to be in trouble, but offering up to £500 seems a little excessive. I suppose that doesn’t matter if your slogan is “No stupid rules, no paperwork, just straightforward fast cash loans”. Shocking!

3. Bank holiday borrowing

QuickQuid took advantage of the recent May bank holiday with this subtle message, just in case you didn’t know that the banks were closed. Even on bank holiday Monday, you’ll still get your cash within 10 minutes of approval, although I’m not quite sure why a bank being closed for one day means you need to take out a loan at 1,734% Representive APR. I could withdraw £10 from the cashpoint within 10 seconds (faster than QuickQuid) and save myself the expense.

4. Cash from the Chancellor himself*

Taking advantage of the UK Budget update, our friends at Speed E Loans offered up to £500 for their very own Chancellor. How noble of him! This ad is very subtle but it plays on the emotions of people who may struggle more with the new budget in place. Still, they can get £500 in their bank within an hour. I wonder if “No stupid rules” extends to actually repaying the loan?

5. Get your friends into debt

Both QuickQuid and Wonga offer up to £20 if you refer friends on Facebook, Twitter and e-mail to their service. Lots of businesses do have a referral service and it can be a good sales driver, but many believe that these payday loan providers are targeting young people who are not financially savvy with their social marketing. Especially when you consider that a £400 month long loan with Wonga costs £119.98 compared to just £5.88 on a Barclaycard or £30 for an authorised Bank of Scotland overdraft. Still want to refer your mates to a payday loan?

Have you seen any interesting payday loan ads, banners or offers? If so, let us know in the comments and we’ll add them to the main article.

This article was written by finance blogger Ian Nuttall. His most recent article is 58 Ways to Get Out of Debt and he occassionally pokes fun at payday loan companies.

The information provided in this blog is not intended for trading purposes or advice. The information contained herein should not be used for financial decision making. LBi bigmouthmedia is not responsible for any informational errors or actions taken as a result of the information provided. A full disclaimer can be found on our about page.

Source:Channel 4

It is the biggest drop since March 2011 and footwear sales were the lowest since 2008 according to figures released by the British Retail Consortium (BRC). Yahooreports:

“Online retailers also saw demand slow, while supermarkets felt the pain despite the cold weather boosting sales of winter warmers – hot drinks, porridge, meat for stewing and soup.

However, there was a silver lining as sales of floor coverings and homewares, such as bedding, linen and lighting, received a boost as the depressing weather prompted people to give their homes a facelift.”

The site also reported comments from BRC director general Stephen Robertson who said:

“The wettest April since records began has put a dampener on retailers’ fortunes.

Consumer interest in summer fashions and outdoor products was washed away by constant downpours.”

The fact of the matter is that retailers are bearing the brunt of the squeeze on consumer spending. However, it’s hoped that events such as the Queen’s Diamond Jubilee, and the Euro 2012 football championships will boost the national mood and inspire more spending.

People are not spending their money on gardening products such as lawnmowers, plants and tools at the moment, but rather are concentrating on smaller indoor DIY tasks. Money is not being spent on more expensive items such as fitted kitchens and bathrooms.

How is the continuing wet weather affecting your spending habits? Tell us in the comments below.

This is the 6th edition of our look at business case studies and this month we are looking at Recruit 121.

Overview

Recruit 121 Logo

“To connect the world’s best-run businesses with the very best talent.”

The Company

Recruit 121 started in 2000 with the simple aim of focussing on the SAP workplace and has been growing ever since. Its goal was to build a company with global reach and offer a smoother connection in a previously disjointed sector. They now work for clients and candidates all over the world and are able to see both perspectives of the market as well as linking them together.

The company’s philosophy is based on five business principles: Quality, Honesty, Screening, Simplicity and Speed. It is these principles and their proved track record in the market that has allowed them to become a trusted partner of SAP AG, their partner and customers since 2003. This has further assisted the business to continually strive to grow and develop further.

The Global Expansion

The company then started on an expansion strategy and looked to find financial support and The Royal Bank of Scotland became their new banking partner. A collaboration between the RBS commercial banking team and the RBS Invoice Finance team lead to a working capital worth £1.75 million.

The finance was used to assist Recruit 121 in its international growth and securing their place in the SAP professional recruitment market.

The company now has over 2,500 placements in more than 30 countries and is one of the leading supplier or SAP employees worldwide.

Do you know of a UK based business which is doing well in these tough economic times? If you do, leave a comment below and we could feature them in a future post…

All mortgages are not created equal and getting a great deal with a favourable interest rate can save you a lot of money over the life of the loan.

There are many different mortgages to choose from, so how can you be certain that you are getting the best rate available?

by Flickr's '401k'

Here are some tips for getting a better deal on your mortgage:

Improve Your Credit Score

Did you know that the higher your credit score the better deal you will likely be offered on your mortgage? If you have a bad credit score, improving it will help you snag a mortgage with a great interest rate. To make your credit score excellent, pay all of your bills on time and don’t use more than 30% of your credit card limit on a regular basis. Also, avoid numerous credit inquiries such as applying for too many credit cards which can also affect your score. If you are making large purchases in the months before you apply the lender might question whether you will be able to make all of your payments.

Make a Bigger Down Payment

Save up as much money as possible to make a down payment on the home. One of the factors that determine the interest rate on the loan will be the ratio of the loan to the overall value of the house. The more you pay up front, the more equity you will have in your home. Since the loan is a lower risk for the lender they will reward you with a lower interest rate.

Use a Mortgage Broker

Sometimes it can be advantageous to seek the advice of a mortgage broker, who will help you compare the different products from a variety of lenders. However, make sure that you come to an agreement about their “fees” before you begin, as some will charge you for their services and depending on what they charge you may not actually make a saving.

Just Ask for What You Want

When you are comparing the different mortgages available, ask the bank to put their best offers in writing. Then you can go to the next bank and show them the offer from their competitor. Ask them if they can beat that offer and win your business. You can also ask them if they have any special offers available. Don’t be afraid to haggle with your bank, as sometimes this technique will work and it never hurts to ask.

Do you have any tips for choosing the right mortgage? Tell us in the comments below.

In this, the fifth in our series of business case studies we are focusing on Sirdar Spinning, a Wakefield-based producer of branded yarns and designs for hand knitting in the UK.

Sirdar Spinning,  the leading producer of branded yarns and knitting designs within the UK was founded in Ossett in 1880 as Harrap Brothers, and Sirdar moved to its present site in 1890. The Sirdar name was adopted in the early years, honouring Lord Kitchener’s appointment as Sirdar or leader of the Egyptian army. It currently employs more than 120 people
and has a £15 million turnover.

With great experience and understanding of their industry the organisation went through a management buyout. The £3 million deal was funded by The Royal Bank of Scotland and RBS Invoice Finance  and assisted by RSM Bentley Jennison. Mark Heyes led the Invoice Finance team for the MBO, working closely with Peter Smith from the RBS Structured Debt Solutions team. Together they created a landmark bespoke deal consisting of stock funding and working capital facilities.

The MBO was led by Managing Director Russell Morris and Finance Director Ian Stead. The pair have acquired the entire share capital from Sirdar PLC.

Russell Morris had this to say about the process and the future Sirdar Spinning:

“We are looking forward to working with all of our employees to drive the business forward and build upon the growth and success that we have already achieved. We are very grateful to both RBS for the funding line it has put in place and the work done by all parties in concluding this deal in a timely and professional manner.”

Overall the deal has proved very successful for those involved. With future growth planned out things are looking good for Sirdar Spinning. Mark Heyes, Associate Director, RBS Invoice Finance commented:

“We are delighted to have helped Russell and Ian take control of the business. Not only do they have considerable experience in the industry but great ambitions for the future and we were seriously impressed with their vision and enthusiasm for the company. We look forward to continuing working with them as their plans unfold.”

Sirdar Spinning is now in a great position to grow and increase its market share through expertise and knowledge as well as a little help from RBS.

Do you know about a similarly sized business weathering the economic storm? Maybe you’re in a similar position? Tell us your experiences in the comments below.

Between now and August more than a million 16-24 year-olds are expected explore the farthest reaches of the world.

It’s more common now for young people to shorter skills focussed trips, with the hope of coming back with practical skills that will increase their chances of employment.
Spending up to a year on a journey of self-discovery on the beaches of South-East Asia or the Australasian fruit farms no longer holds as much appeal.

Image: AlphaTangoBravo/Adam Baker

Today, arguably we have the most economically aware young people in Britain for a generation – how could they not be? Well, if they’ve been on that South-East Asian beach for the last few years it’s possible.
At the moment one-in-five young people in the UK are unemployed, and overall unemployment in the UK this year is expected to peak at 2.85m – nearely half them will be 16-24 year-olds.

This doesn’t stop us from donning a backpack and seeking adventure on the other side of the world.However, before you go there are a few financial issue you should consider.

Insurance

Everybody assures themselves that bad things happen to other people. However, no matter how cautious you are, there’s still a chance that belongings can be lost or stolen, or even suffer serious injury.
Quite a scary prospect, especially when you consider that a quarter of “gappers” travel without insurance.
When you do look for tht insurance not only should you shop around, you also need to make sure you get the right sort of insurance.
Standard insurance won’t cover you for a gap year, so you need to look for a specialist insurer who will be able to cover you for arounf £80 for six months, or between £150-£300 for 12 months.

Staying in touch

Sending that message home to mum and dad has never been easier with the internet when you can skype them, but there are lots of international sim card companies out there, that specialise in keeping costs down no matter how far away you are. If you find yourself settled on the other side of the world these SIM companies are just as good for the folks back home to stay in touch with you.

In an interview for thisismoney.co.uk, for Mike Wilson, manager of mobile phones at comparison website moneysupermarket.com, says:

 ”Although a lot is being done by the European Commission to bring down costs for using mobiles in Europe, there is no such action in process when travelling further afield. It is vital consumers are up to speed with the charges they might face.”

So, be wary of the contract you have with your domestic provider deals including text messages, minutes and data download usually become void and receiving calls and texts could be more expensive.

Are you about to go on a gap year or have you just returned from your travels? what preparations did you make? Share your advice in the comments below.

So the Christmas tree and decorations are down, you have cleared away all that drink from new year, well what is left of it anyway (!) and made your new years resolutions… then the credit card bill comes in! Panic!

Did you really need to buy all that? Did you treat yourself too much? Maybe it is time to re-think your finances.

Tighten Your Belt via Kenteegardin

January is the perfect time to look at your finances and reorganise your bank accounts. But where to start – with a budget.

Make a list…
Sit down with your bank statements and work out what all your bills are when it all comes out. Include everything from the high importance things like your mortgage/rent, council tax, motor insurance etc, to the smaller things like your mobile phone contract and your DVD rental.

…check it twice
Once you have written down what  is coming out, how much and when it will come out, you need to workout if you can afford it all on your income. If you can’t afford it all, cut out what you don’t need and shop around for a cheaper deal on those things you can’t do without. Then once you have done all that, see what you have left. Work out what you need on a daily basis and what you want to save.

Now, give yourself a pat on the back! It’s never nice to do a budget but you will feel cleansed and ready to start the new year afresh once you know what money you do have.

Streamline your bank accounts
The next job is to re-evaluate your bank accounts. You need to work out which accounts aren’t working for you and which you simply don’t need any more. Do you have savings accounts which just have peanuts in them – get rid! Look at all your credit cards and shop cards, yes all of them, and decide what you will and won’t use. There is no point in lowering your credit rating on having too many cards you just aren’t using any more.

Then look to see if there is another current account or savings account which is giving you more benefits or interest, it is always best to check you have the best deal out there.

Sensible shopping
Finally, start practising some new shopping techniques. Try the two week rule, as recommended by Career-Success-for-Newbies.com. The rule is designed to stop you from buying unnecessary impulse buys. The idea is that if you see something you want to buy, wait two weeks and if you are still really keen to get it, then go for it, treat yourself, if not then think of the money you’ve saved! Other ideas are shopping with a list or a time restriction to stop you buying things you don’t need.

Get a helping hand
It’s important to maintain a healthy personal wealth management as you need to ensure you are not over spending and saving where you can, especially in these tough times. There are great online tools for managing your personal finances and even more support if you are struggling. The main idea is to live within your means and treat yourself every so often!

Have you thought about reorganising your finances after the festive period? What are you going to do to save the pennies? Tell us in the comments below.

Image: Lamiavitadimerda ®'s

The National Union of Students has revealed, through an interview on BBC Radio 5 Live’s Breakfast programme, that, alarmingly, an increasing number of students in England are turning to prostitution to fund their way through higher education.

Speaking on the programme, Estelle Hart, the NUS’s national women’s officer, said:

“In an economic climate where there are very few jobs, where student support has been massively cut, people are taking more work in the informal economy, such as sex work.”

She also said:

“It’s all dangerous unregulated work, simply so people can stay in education.”

The shocking revelations come amid ongoing criticisms of the amount of money students are expected to pay to see themselves through higher education in England.

Whilst it’s easy to dismiss the claims as sensationalistic, it’s worth considering research that the University of Kingston published last year, which showed that the number of university students who knew someone who had worked in the sex industry to fund their studies had dramatically shot up from 3% to 25% over the last decade.

Sarah Walker, of the English Collective of Prostitutes, which runs a helpline for women within the industry, claimed that the volume of students getting in touch with them had doubled within the last twelve months. Whilst the figure had been growing gradually over the last decade, they claim to have received a record number of calls since the government’s announcement that English universities could begin to charge up to £9000 a year for tuition fees from next year.
Walker said:

“They (ministers) know that the cuts they’re making are driving women into things like sex work. It’s a survival strategy so we would hold the government responsible for that.”

Further instances have since emerged with one student claiming that she turned to escorting to get through her A-levels after her Education Maintenance Allowance (EMA) was cut.

A spokesman speaking on behalf of the Department for Education claimed that they are doing what they can to support students financially:

“We are targeting £180m a year financial support at the most vulnerable 16 to 19-year-olds to help them continue their studies – with transitional funding for the students who were getting the top rate of EMA and part way through their studies.”

Adding:

“It is down to schools and colleges themselves to award bursaries to young people who need the most help. If students are really struggling financially, they need to speak directly to their tutors.”

What should the Government be doing to financially safeguard a young person’s education? Share your ideas in the comments section below.

Image by: rinkjustice

The majority of us will at some point have come up short money wise at least once in our life. It may have been an unexpected bill or expense that put you off your budget but how did you handle it? There appears to be a worrying growth in the number of businesses offering payday loans.

Payday loans are loans meant for the short term, you can usually borrow a couple of thousand with a lower number of checks and have the money in your account within fifteen minutes. Now this all sounds too good to be true. That is because it is. There is a real worry that people are turning to these payday loans as a viable way of sorting out there financial problems. With some organisations charging interest as high as 4,000% it surely must be seen that these organisations are preying on people who need help.

Have a look at this video which looks at the standards and regulation of the payday loans.

There is a real risk of people falling into a rolling debt. They may borrow a small amount of money for an emergency and find them selves paying more in interest and unable to pay back the amount, this is when the trouble begins, the amount of interest will continue to put the individual in a very tight position. Perhaps leading to the individual taking out another payday loan and digging themselves deeper into a financial hole.

So what are the alternatives?

• Put the emergency amount on a credit card – much lower interest.
• Create an overdraft or increase the level of your overdraft – depends if the bank will allow you to do this.
• Borrow from friends or family – again depends on the amount and how kind they are feeling.

We at cashzilla believe that there needs to be regulation placed on these companies and help offered to those unfortunate people who have fallen into this financial trap. There are people who have taken out payday loans and have repaid them quickly and have had no problems but there must be something put in place to stop people from finding themselves stuck at the bottom of a financial mountain due to the huge amounts of interest put on an emergency loan.

Have you ever taken a payday loan? Did you have any problems paying them back? What do you think would be a better alternative? Any thoughts and comments please leave them in the section below.

Cards via plastic data card

Plastic Data Card was started in 1992 by Jim O’Carroll who was looking to capitalise on a growing demand and decided to start his own company to make the most of this demand.

The Kent based company supplies a wide range of cards from event passes to membership cards. The company supplies Tesco as well as other blue chip companies. Plastic Data Card has a number of satisfied customers, most  happy with the quick turnaround as Hannah Jones says:

“I was really impressed with the quick service that we received. You guys really stepped up to the plate to ensure our vip badges were delivered on time to a really important event.”

The company, like most small companies starting in this difficult climate, decided to look into using invoice factoring services to keep their business secure but struggled to find financial backing:

“Back then we were a young business. Some finance companies saw us as too much of a risk to offer a full range of credit facilities, so we chose factoring. This early decision has proved to be right – time and time again.

They use these services to get credit checks carried out on new customers submitting large orders. The service also has a bad debt protection element which allows for fast turnarounds and gives the company a competitive advantage.

Managing director Jim O’Carroll, said that the invoice finance service “has been a key part of the way we do business, and has certainly helped us to get where we are today.”

Today the company is keeping up-to-date with modern business and now has a Facebook and Twitter. The company is thriving in a difficult financial market by keeping to traditional business values like a good and reliable service.

Do you know of any businesses which are weathering the economic storm? Tell us about them in the comments section below.