Payday loans........don't we ever learn.............
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Payday loans........don't we ever learn.............
Haven't we just had a banking crisis, partly because people overstretched themselves with easy credit. This morning i saw a tv advert for some company, money in your bank in less than 30 minutes, 1734% interest. Personally i think the FSA should put a stop to it, but i also think how can anyone be so stupid to take out such a loan in the first place.
I despair at times.
I despair at times.
Last edited by paulr; 12 December 2011 at 11:44 AM.
#2
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How to say,these payday loans are same like shark loans,just shark loans don't have fancy adverts on TV,but in principle of these loans are same.
But who can takes such of loan,if you are despair times(and you don't have chance get any bank loan or credit card etc.),you will take
Personally this is biggest rip off on the people
Jura
But who can takes such of loan,if you are despair times(and you don't have chance get any bank loan or credit card etc.),you will take
Personally this is biggest rip off on the people
Jura
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They are legally obliged to put their APR on the advert but who in their right mind would pay off one of those loans over a year?
They are meant to tie you over until pay day, a week at most. The interest then would be 33% for a week or 4.6% per day. Even so, I still think this is ridiculous.
They are meant to tie you over until pay day, a week at most. The interest then would be 33% for a week or 4.6% per day. Even so, I still think this is ridiculous.
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Haven't we just had a banking crisis, partly because people overstretched themselves with easy credit. This morning i saw a tv advert for some company, money in your bank in less than 30 minutes, 1734% interest. Personally i think the FSA should put a stop to it, but i also think how can anyone be so stupid to take out such a loan in the first place.
I despair at times.
Secondly any sort of loan go's against my moral beliefs.
I despair at times.
Secondly any sort of loan go's against my moral beliefs.
So I take it you don't have a mortgage? Nice position to be in
You're right they are a rip off but perhaps avoid getting your legs broken if you just use a loan shark.
And banks aren't much better now that many charge on a daily basis for going over an overdraft limit.
dl
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Short term loans do come in handy when there is a cashflow issue
And when I say cashfow, I mean that is a case where I DO have the money but the bank won't give it to me quick enough I swear they do this on purpose to force me to pay interest on money that I need urgently, even though its my f***ing money!
Obviously so long as you treat the loan exactly as they say ....as a short term loan for a week or so. Then the penalty is liveable, but should you default on the loan they'll have your ball in a vice!
So you should never ever take a loan like this out, unless you do actually have the money, but can't access it quick enough. It should never be used to substitute or fund a debt...a shortage of funds is not the same as cashflow. Anyone who treats debt as a cashflow issue in this manner will very quickly end up in knee deep dog poo. When it comes to debt, credit and mortgages, I think alot of people lie to themselves - more the fool them.
But I bet loads of thick people fall for it though, money is never free. If they haven't got any then this will make it far worse
And when I say cashfow, I mean that is a case where I DO have the money but the bank won't give it to me quick enough I swear they do this on purpose to force me to pay interest on money that I need urgently, even though its my f***ing money!
Obviously so long as you treat the loan exactly as they say ....as a short term loan for a week or so. Then the penalty is liveable, but should you default on the loan they'll have your ball in a vice!
So you should never ever take a loan like this out, unless you do actually have the money, but can't access it quick enough. It should never be used to substitute or fund a debt...a shortage of funds is not the same as cashflow. Anyone who treats debt as a cashflow issue in this manner will very quickly end up in knee deep dog poo. When it comes to debt, credit and mortgages, I think alot of people lie to themselves - more the fool them.
But I bet loads of thick people fall for it though, money is never free. If they haven't got any then this will make it far worse
Last edited by ALi-B; 12 December 2011 at 11:41 AM.
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Short term loans do come in handy when there is a cashflow issue
And when I say cashfow, I mean that is a case where I DO have the money but the bank won't give it to me quick enough I swear they do this on purpose to force me to pay interest on money that I need urgently, even though its my f***ing money!
Obviously so long as you treat the loan exactly as they say ....as a short term loan for a week or so. Then the penalty is liveable, but should you default on the loan they'll have your ball in a vice!
So you should never ever take a loan like this out, unless you do actually have the money, but can't access it quick enough. It should never be used to substitute or fund a debt...a shortage of funds is not the same as cashflow. Anyone who treats debt as a cashflow issue in this manner will very quickly end up in knee deep dog poo.
But I bet loads of thick people fall for it though, money is never free. If they haven't got any then this will make it far worse
And when I say cashfow, I mean that is a case where I DO have the money but the bank won't give it to me quick enough I swear they do this on purpose to force me to pay interest on money that I need urgently, even though its my f***ing money!
Obviously so long as you treat the loan exactly as they say ....as a short term loan for a week or so. Then the penalty is liveable, but should you default on the loan they'll have your ball in a vice!
So you should never ever take a loan like this out, unless you do actually have the money, but can't access it quick enough. It should never be used to substitute or fund a debt...a shortage of funds is not the same as cashflow. Anyone who treats debt as a cashflow issue in this manner will very quickly end up in knee deep dog poo.
But I bet loads of thick people fall for it though, money is never free. If they haven't got any then this will make it far worse
Anyone stupid enough to need a payday loan, should never be allowed.
Re borrowing for a mortgage, my mistake, nothing wrong with that. I really meant i have never borrowed money to buy a car for example.)
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#8
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seen one advert several times over the weekend, you could borrow up to £2000 and pay it back over a year at 234% APR (I think it said) but the weird part that caught my eye was that they were using actor's to voice actual customer comments, where the actual customers too ashamed or afaid or shy to appear on tv, maybe if the actual customers appeared on tv they would have to be paid and then wouldn't need the loan.
windyboy
windyboy
#11
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Saw one advert that had some gimmic special offer and the voucher code was "Cash22"
To me this seems like a huge pi55 take to those people that are going to use their services. Refering to Catch 22 - you're dammed if you do and dammed if you don't.
Our neighbour use to do these small loans where someone would come round to the house to collect the money. For all sorts of reasons, my wife ended up borrowing some money on the suggestion of the neighbour (I know silly girl but a lesson learned) and hid it from me. The neighbour knew it was to be a secret from me because I'd flip and the nasty bint sent the collector round knowing I was there and the wife was out. The cheeky ****** wouldn't even speak to me - my house, my name on the deed (only mine) and they wouldn't speak to me. Needless to say I went crazy on all of them. All for £100
To me this seems like a huge pi55 take to those people that are going to use their services. Refering to Catch 22 - you're dammed if you do and dammed if you don't.
Our neighbour use to do these small loans where someone would come round to the house to collect the money. For all sorts of reasons, my wife ended up borrowing some money on the suggestion of the neighbour (I know silly girl but a lesson learned) and hid it from me. The neighbour knew it was to be a secret from me because I'd flip and the nasty bint sent the collector round knowing I was there and the wife was out. The cheeky ****** wouldn't even speak to me - my house, my name on the deed (only mine) and they wouldn't speak to me. Needless to say I went crazy on all of them. All for £100
Last edited by EddScott; 12 December 2011 at 12:23 PM.
#12
They are basically a symptom of the current climate, they do provide a service but it is another way that the finance industry is spanking those who can least afford it, I suspect a lot of these companies are the same ones as the claims companies that are looking for a new avenue, perhaps realising that the compensation thing has had its day and is now being legislated against which will cut the margins on the money for nothing business.
I suspect that partly that a lot of the rate is due to a lot of defaults, potentially they have to write a percentage off, probably due to suicides but even so it is so cynical, nobody seems to want to provide a service at a reasonable cost now, they all seem to want massive returns for little effort, you would think the number of firms would introduce some competition but they all seem to offer silly APR's but perhaps they dont need to as the hard of brains probably think higher is better anyway, my kids have this all explained to them and no know what a mess you can get yourself into, not much is worth going into that kind of agreement. What about the Wonga.com adverts, the creepy puppet pensioners, jesus, if that isnt enough to put you off.
I might start one up, must be dead easy, imagine the profit if you borrowed ten grand at say seven percent and then loaned it out at 2 - 4000 percent, kerching.
I guess it is one of those things, being poor costs you money, everything is geared towards minimum risk for the service provider and maximum profit, prepayment meters, Brighthouse shopping, pay as you go phones, cant use direct debits and generally you end up buying cheap **** that breaks, the middle and upper classes tend to get it right, buy quality stuff and then look after it and hand it down.
I sympathise with anyone struggling and using it to pay bills but anyone who uses it for non essentials is a ****.
I suspect that partly that a lot of the rate is due to a lot of defaults, potentially they have to write a percentage off, probably due to suicides but even so it is so cynical, nobody seems to want to provide a service at a reasonable cost now, they all seem to want massive returns for little effort, you would think the number of firms would introduce some competition but they all seem to offer silly APR's but perhaps they dont need to as the hard of brains probably think higher is better anyway, my kids have this all explained to them and no know what a mess you can get yourself into, not much is worth going into that kind of agreement. What about the Wonga.com adverts, the creepy puppet pensioners, jesus, if that isnt enough to put you off.
I might start one up, must be dead easy, imagine the profit if you borrowed ten grand at say seven percent and then loaned it out at 2 - 4000 percent, kerching.
I guess it is one of those things, being poor costs you money, everything is geared towards minimum risk for the service provider and maximum profit, prepayment meters, Brighthouse shopping, pay as you go phones, cant use direct debits and generally you end up buying cheap **** that breaks, the middle and upper classes tend to get it right, buy quality stuff and then look after it and hand it down.
I sympathise with anyone struggling and using it to pay bills but anyone who uses it for non essentials is a ****.
Last edited by J4CKO; 12 December 2011 at 12:33 PM.
#13
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Been there seen it done it. 3 years ago i took out one of these pay days as my firm didnt pay me properly. so i take out a loan for £300. I had to pay back £425. However this wasnt as easy as i thought. Within 6 months this single loan had escalated to 6 pay day loans and me with a bill in excess of £3000. I know what i did was wrong and caused me a heap load of trouble and worry. Then one day i broke down to my mum. We ended up speaking to debt line and managed to get all the interest freezed. I took out a loan from the bank explaining what had happened so they gave me the money. After i paid these loan off it took me 7 months to pay the loan off. i was paying £600 a month off compared to the £1000 i was with the loans for payday. It was my choice tho to pay the bank back a bit higher then i could off so it was all settled early......
Never again will i touch these theifs. All i had to do was save a few quid and im laughing now
Never again will i touch these theifs. All i had to do was save a few quid and im laughing now
#14
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I find it's the single mums, borrowing from people like provident. To just get their kids the latest console or gadget.
It's a flipping mugs game.
Normally have a 42" plasma with a pay meter behind it
It's a flipping mugs game.
Normally have a 42" plasma with a pay meter behind it
#15
Anything like this just has the potential to spiral out of control, its like when you ignore parking tickets or tax demands but with an even more vindictive penalty system, Wonga are very keen to hit people with additional charges to turn a manageable, short term debt, even allowing for the exorbitant charges into a much bigger, longer term one, basically they want to get their claws into you. Their advertising must be expensive, it is on all the time and a lot during the day.
Perhaps there is a gap in the market for a company that does this kind of thing on a more ethical basis, like the credit union things people do.
I hope these companies get reigned in a bit sometime soon as that is easier than tackling the lack of brains that a significant proportion of the country seem to have, well that and desperation.
Perhaps there is a gap in the market for a company that does this kind of thing on a more ethical basis, like the credit union things people do.
I hope these companies get reigned in a bit sometime soon as that is easier than tackling the lack of brains that a significant proportion of the country seem to have, well that and desperation.
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Not sure it is completely do to with current climate , 'boyfriend' of one my mothers friends runs a garage before he handed it to his son and one of his sidelines was lending cash to anybody but mainly council house desperates , cos they had to have xmas money , money spend on their holidays , short notice - f**king rediclous returns for him
And they would ring him up pleading for the readies - most time he would be able to 'squeeze' the money back from them
And they would ring him up pleading for the readies - most time he would be able to 'squeeze' the money back from them
#18
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I cant stand those Wonga radio adverts, they really stick in your head.
I am sure I have seen some companies charging 4500% APR!! I bet this time of year and January are there busiest months.
I am sure I have seen some companies charging 4500% APR!! I bet this time of year and January are there busiest months.
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Another tip i live by, i read it was a quote from Ron Dennis. "If you cant buy something twice, dont buy it once."
#20
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Its just stupid your better off using your overdraft or credit card.
#21
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On a side note wonga are tossers!
I get called 3 times a day because they have my company mobile as a contact number for someone who's not paid their bill.
So I've told every call I get I will be sending a bill in for time wasting answering these calls as I'm losing money answering these calls. Also added the interest rate will match theirs if the bill wasn't paid.
Not had a phone call since
I get called 3 times a day because they have my company mobile as a contact number for someone who's not paid their bill.
So I've told every call I get I will be sending a bill in for time wasting answering these calls as I'm losing money answering these calls. Also added the interest rate will match theirs if the bill wasn't paid.
Not had a phone call since
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I think its mostly that people of today will not be without. People overstretch themselves so they can live how they want to live rather than to their means.
The credit should not be available so freely. It's the whole reason why things are so bad these days.
The credit should not be available so freely. It's the whole reason why things are so bad these days.
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Exactly, put all your pressies on your CC, take out a Virgin card, transfer for 3%, then you have 13 months to pay it off interest free.
3% or 1473%...............
Its the way the adverts say, "money in your bank within one hour". Ba£tards.
3% or 1473%...............
Its the way the adverts say, "money in your bank within one hour". Ba£tards.
Last edited by paulr; 12 December 2011 at 01:21 PM.
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They are legally obliged to put their APR on the advert but who in their right mind would pay off one of those loans over a year?
They are meant to tie you over until pay day, a week at most. The interest then would be 33% for a week or 4.6% per day. Even so, I still think this is ridiculous.
They are meant to tie you over until pay day, a week at most. The interest then would be 33% for a week or 4.6% per day. Even so, I still think this is ridiculous.
TX.
#26
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The one taking out the loan may be in their position through no fault of thier own. The one offering the loan doesn't really have to royally stiff them for 4 figure APRs.
Neither side is whiter than white. I think its the ease of which these things can be arranged and then very quickly get out of hand.
Is this area regulated? Does the FSA have any interest here? Not that they would be much help.
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But if you lent someone a £100 for a week what would your administration costs be, even if all paid back on time etc. Must be £10/£20. Allowing for defaulters etc. its easy to see why rates are high. (N.B. I didn't say so high.)
Nossy, not everyone can get a credit card / overdraft.
Nossy, not everyone can get a credit card / overdraft.
Last edited by speedking; 12 December 2011 at 01:33 PM.
#28
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Its not as clear cut as that though is it?
The one taking out the loan may be in their position through no fault of thier own. The one offering the loan doesn't really have to royally stiff them for 4 figure APRs.
Neither side is whiter than white. I think its the ease of which these things can be arranged and then very quickly get out of hand.
Is this area regulated? Does the FSA have any interest here? Not that they would be much help.
The one taking out the loan may be in their position through no fault of thier own. The one offering the loan doesn't really have to royally stiff them for 4 figure APRs.
Neither side is whiter than white. I think its the ease of which these things can be arranged and then very quickly get out of hand.
Is this area regulated? Does the FSA have any interest here? Not that they would be much help.
IMO Its always the person taking out the loan; Only they know their financial predicament. The loaner only knows what they been told by the borrower.
Its the borrower's choice to take up the offer of a loan. They can always refuse or find another mean of debt management.
Last edited by ALi-B; 12 December 2011 at 01:38 PM.
#29
#30
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Thats why its best to put some money aside for a rainy day. I used to do that but I will admit its hard now got nothing in the way of savings.