Tag Archives: employment
Unsecured loans: no need to burden your pleasures with unnecessary risk
The business of unsecured lending is gaining a strong foothold in the UK loan market. Instances of home repossessions are increasing at an alarming rate in UK. This is gradually shifting the tide in favour of unsecured loans.
Who would wish to lose his home while trying to meet the needs of life?
Nowadays, people in UK are quite apprehensive of pledging their homes to raise finances. They prefer to go for risk-free financial means to cater to their needs and desires. Unsecured loans are offered in the absence of collateral security. So, both the homeowners as well as the tenants are eligible for an unsecured loan. Unsecured form of personal loans not only reduces the risk for a borrower, but also offers freedom and flexibility in the usage of loan money.
However, lack of security poses a hindrance in the easy availability of unsecured loans. The risk factor is quite high in case of an unsecured form of a loan, as compared to secured loans. There is no collateral to back up the loan money. As a result, lenders run a risk of losing the money in case a borrower fails to repay the loan due to some reason.
The lenders counter the risk factor by imposing stringent terms and conditions, approving only a small sum of money and charging a comparatively higher rate of interest (as compared to secured loans).
You can avail a competitive deal of unsecured loans if you have an impressive credit score. So, get a report of your credit score from Experian or Equifax and bargain for a favourable deal.
Lenders also put emphasis on the employment stability of borrowers while approving an unsecured loan application. So, if you are employed, arrange documents that prove your employment stability.
Last but not the least, shop around as much as possible so that you can select the deal best suited to your needs. You can save your time and efforts substantially by doing online shopping for unsecured loans.
About Student Loan Garnishment
What is Administrative Wage Garnishment (AWG)?
Administrative wage garnishment (A.W.G) is the process by which a Federal agency (Dept. of Education) or a third-party given authority by a Federal agency (the collection agencies) may, without first obtaining a court order, order an employer to withhold amounts from the debtors wages to satisfy a delinquent debt. Dept. of Education considers AWG to be a tool of last resort. Before using AWG, Dept of Education expect its representatives to have attempted to resolve the debt through voluntary means: attempting to secure the balance in full, an approved settlement, or installment payments that are “reasonable and affordable” based on the debtors individual financial circumstances. Some within the industry may consider this the guaranteed recovery method.
Representatives must consider whether the debtor presents a legitimate defense to the repayment of the debt(s), and whether AWG may be ineffective because the debtor is self-employed or a Federal employee, in which cases the collection agency will recommend litigation or a salary offset.
What is the purpose of AWG?
The purpose of an AWG is to recover the amounts for the Federal taxpayers without the cost of litigation fees. It was created to basically recover the unpaid debts arising from federally supported activities, which include student financial assistance.
What are the debtors rights in the AWG process?
-To be sent a notice 30 days prior to ED ordering the wage garnishment that explains EDs intention to garnish, the nature and amount of the debt obligation, and the opportunity to inspect and copy records relating to the debt, to object to garnishment to collect the debt, and to avoid garnishment by voluntary repayment on terms agreeable to ED.
-To have the opportunity to inspect and copy Department records pertaining to the debt. (A copy of the original signature left on the promissory note and a payment history)
-An opportunity to present evidence and argument and on any objection by the debtor to the existence, amount, or enforceability of the debt, and to obtain a ruling on the objection.
-An opportunity to prove that the garnishment of 15% of the debtors disposable pay would produce an extreme financial hardship.
-Having garnishment action withheld by filing a timely request for a hearing, until the hearing is completed and an adverse decision issued; Not to be discharged from employment, refused employment, or subject to disciplinary action due to the garnishment, and to seek redress in federal or state court if such action occurs; and Not to have any information provided to the employer but that which is necessary for the employer to comply with the withholding order.
-An opportunity for a hearing to present and obtain a ruling on any objection that garnishment cannot be used at this time because the debtor is now employed for fewer than 12 months after involuntary separation from the most recent prior employment.