Unsecured Loans : A Loan Is Taken Without Being Supported With Any Collateral

Family structure has been changed and there is about one and a quarter million single parents. A family making up to 19% of all families with children, the number of single parents has almost doubled since the early 1970s. According to census 2001 report and labor force survey, the rate of married couple (marriages) has decreased over the last ten years, (accounting for 71 per cent of families in 2006, compared with 76 per cent in 1996). In the same period, the proportion of cohabiting couple increased to 14 per cent from 9 per cent. The proportion of lone parent families increased by less than one per cent over this period, but the

In this essay I shall be discussing the factors which influence the level of and access to unsecured debt held by households.

The most noticeable changes are the raise in the extent of one-person households, and in the extent of lone parent families. In 1996-7 more than one fourth of households comprise one individual living alone, twice the extent of 1961. The extent of families involving a couple family with dependent children has fallen from 38% in 1961 to 25% in 1996-7 (Irwin, 2000).

Diverse ways of managing money, different financial incomes, and an absence of cash can create great tension in a marriage. In fact, statistics in a survey conducted by Citibank on the divorce rates in the United States suggested that more than fifty percent of divorced couples referred to financial problems as the cause of their divorce. If the couples have children, cash turns out to be significantly more crucial to the relationship. Many individuals refer to money as the reason for their separation. If there is not enough financial care, it causes a barrier in the relationship which is what essentially leads the couple to

As Young teenagers become adults and start College, one issue that doesn’t seem as a big deal at the moment for many students are student loans. Young college students who don’t have the money, don’t have enough scholarship money, or family who doesn’t have the money to pay, will apply for student loans each year. They amount the student receives can vary depending on the college and what the student has achieved academically. Though interest rates are low with subsidized being 4.29% and unsubsidized being 5.84% ("Federal Student Aid" Interest rates and Fees), student loans still have a huge effect on college students once they graduate. One college graduate’s story helps explain the struggles for most students:

For these young college graduates, will have to worry not only because they have to find a job in six months, but this will also create a burden in, which the students knows that they only have a short period of time to star paying back the loans in couples of thousands dollars a month. The majority-working people, found themselves not able to afford their own home, children, and bills. That’s why most college graduate end-up moving back to their parents home back again.

All the results show the relationship between income and size with credit balance, which have sense because with high income and larger household you have more expenses, which translate in more credit balance. Nevertheless, how many years you live in an area don’t necessarily mean more credit balance.

     Usually, families that have financial problems have their teenage children go to work. Having an extra family

Moreover, a large debt load is associated with postsecondary education. Preparing for college includes seeking out all venues for lowering the cost of tuition. economic support from you limited resources debt incurred to pay for the college leads many to delay marrying, delay buying houses

Single parent families, especially those headed by a female, differ greatly from married couple families in their characteristics. Single parent families are more likely to be poor, receive welfare, and contain young children. In 1990 female-headed households had a poverty rate of 33.4 percent while poverty rates for married couple and male-headed households were 5.7 and 12.0, respectively. (U.S. Bureau of the Census 1991a). As reflected by their higher poverty rate, the earnings power of women heading households is far less than that of married couples or male only

We extend unsecured credit to our customers and are therefore vulnerable to any financial difficulties they may face.

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Married couples make up 68% of all families with children under 18, compared to 93% in 1950 (US 2015 Census). This demonstrates that more and more children are living in households with single parents. Single parents have to deal with jobs and other sources of stress making it difficult to give their children the attention they need. Additionally, single parents are the only ones that are providing for the family so they have a lot on their plate. This can provide stress on the child because they can feel unloved or even hated. As the rate of single parents go up, so does the amount of children that are not receiving enough

Nowadays, the majority of us depend on our monetary income to be able to comfortably continue living on this earth; the fact that we need money for our food, our education and our health makes it a significant factor in our lives. Sometimes, due to unfortunate circumstances, we may face “perils” or obstacles in our day to day activities, such as an illness or an injury, which may have an impact on our ability to work and hence affecting our income. As a result, a few may tend to find it difficult to repay a loan or debt they have borrowed in the past. According to the Financial Conduct Authority (2013), Payment Protection Insurance (PPI), or usually referred to as “loan protection”, is a financial product sold to consumers that guarantees

In case of crisis, these people find it convenient to approach non-institutional sources for their credit necessities. Financial emergencies, for instance include unforeseen expenditure on business, consumption, marriage among others, which may not be financed by banks and other institutional organizations. Need specific loans / credit schemes can attract the people towards the banking domain.