love_rat Posted December 8, 2011 Share Posted December 8, 2011 The growth of payday loans is on the up. But who are the people using these loans, and what drives people to such desperate measures? Am I right in thinking that the people who are using this facility are people in low paid work? people who work hard, but cannot deal with price rises and the freeze in there pay? If it is workers, does this show that working is no longer paying? Link to comment Share on other sites More sharing options...
LSMBuilders Posted December 8, 2011 Share Posted December 8, 2011 I think that people borrowing from these companies are in a pretty desperate position. The interest these companies charge is extortionate; they are legalised gangsters praying on people/families in vulnerable positions. It doesn’t matter if you earn £10k or £100k per year, if the mortgage needs paying or food needs putting on the table...... Link to comment Share on other sites More sharing options...
sedith Posted December 8, 2011 Share Posted December 8, 2011 I think that people borrowing from these companies are in a pretty desperate position. The interest these companies charge is extortionate; they are legalised gangsters praying on people/families in vulnerable positions. It doesn’t matter if you earn £10k or £100k per year, if the mortgage needs paying or food needs putting on the table...... I'm not saying that what these pay day loan companies are doing is right and the APR charges are astronomical but they are lending money to people who would not normally get credit elsewhere. I would imagine that the have a pretty poor ratio of people paying their debts off. From what I can see, you know exactly what you are getting into, the amount you borrow and the amount you pay back are clearly stated ... you have a choice! Link to comment Share on other sites More sharing options...
Bigthumb Posted December 8, 2011 Share Posted December 8, 2011 You need to be pretty desperate to take a loan at 5000% interest, but if you are loaning money where there's a very high risk that you won't get it back would you loan a stranger money in the first place? Link to comment Share on other sites More sharing options...
truman Posted December 8, 2011 Share Posted December 8, 2011 You need to be pretty desperate to take a loan at 5000% interest, but if you are loaning money where there's a very high risk that you won't get it back would you loan a stranger money in the first place? You're quoting the equivalent APR..Aren't these loans only designed for short term use ie until the next "payday"..? Link to comment Share on other sites More sharing options...
sedith Posted December 8, 2011 Share Posted December 8, 2011 Companys like Brighthouse build non payment by their customers into the 29% apr weekly payments. The bigger the risk, the bigger the APR! Pagets have been at it for years Link to comment Share on other sites More sharing options...
Bigthumb Posted December 8, 2011 Share Posted December 8, 2011 You're quoting the equivalent APR..Aren't these loans only designed for short term use ie until the next "payday"..? So they say but folks without jobs don't have pay days. I think that people borrowing from these companies are in a pretty desperate position. The interest these companies charge is extortionate; they are legalised gangsters praying on people/families in vulnerable positions. It doesn’t matter if you earn £10k or £100k per year, if the mortgage needs paying or food needs putting on the table...... I agree up to a point but people don't need wide screen TVs, Xboxes, Iphones and designer labels. It is the ability to buy things that you don't need on tick that gets many folks into the situation in the first place. Link to comment Share on other sites More sharing options...
LSMBuilders Posted December 8, 2011 Share Posted December 8, 2011 There seems to be a new payday company popping up everyday, which to me says the business is working. The goal of these companies as with any lender/store card etc is to get you into a lot of debt and have monthly payments coming in that the customer (borrower) can afford to pay but will literally take forever to clear the debt. Like i said, the person would need to be in a pretty desperate position. Link to comment Share on other sites More sharing options...
truman Posted December 8, 2011 Share Posted December 8, 2011 So they say but folks without jobs don't have pay days. I know that..I know it's difficult but they shouldn't be taking on loans that they won't be able to service.. Link to comment Share on other sites More sharing options...
Bigthumb Posted December 8, 2011 Share Posted December 8, 2011 I know that..I know it's difficult but they shouldn't be taking on loans that they won't be able to service.. I refer to my post 7 "... people don't need wide screen TVs, Xboxes, Iphones and designer labels. It is the ability to buy things that you don't need on tick that gets many folks into the situation in the first place." Link to comment Share on other sites More sharing options...
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