sccsux Posted December 8, 2011 Share Posted December 8, 2011 But who are the people using these loans, and what drives people to such desperate measures? I have no idea, but the missus is responsible for writing the blurb for half of the sites offering them. Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted December 8, 2011 Share Posted December 8, 2011 I have no idea, but the missus is responsible for writing the blurb for half of the sites offering them. Is it true that her credit card was stolen- but you decided not to report the loss (as the thief uses it less than she did)? Link to comment Share on other sites More sharing options...
Harleyman Posted December 8, 2011 Share Posted December 8, 2011 Payday loans are the worst way to borrow money. The interest rates are almost 100 percent of the amount borrowed. Anyone who is foolish enough take out a payday loan must be on their beam ends financially Link to comment Share on other sites More sharing options...
sccsux Posted December 8, 2011 Share Posted December 8, 2011 Is it true that her credit card was stolen- but you decided not to report the loss (as the thief uses it less than she did)? Ah, I see you're making things up again. Link to comment Share on other sites More sharing options...
Stranza Posted December 8, 2011 Share Posted December 8, 2011 Payday loans are the worst way to borrow money. The interest rates are almost 100 percent of the amount borrowed. Anyone who is foolish enough take out a payday loan must be on their beam ends financially I've seen in the US that the payday industry is big so it goes without saying the UK will follow. One of the popular payday companies (dunno if naming them will be permitted so lets just say it rhymes with Conga) advertises their APR at Representative APR 4214% that's not a typo 4214%.......and it's legal. Link to comment Share on other sites More sharing options...
sccsux Posted December 8, 2011 Share Posted December 8, 2011 I've seen in the US that the payday industry is big so it goes without saying the UK will follow. One of the popular payday companies (dunno if naming them will be permitted so lets just say it rhymes with Conga) advertises their APR at Representative APR 4214% that's not a typo 4214%.......and it's legal. That's because the loans are short term and you would only pay that kind of interest rates if the loan was for a minimum of twelve months. Link to comment Share on other sites More sharing options...
fruitisbad Posted December 8, 2011 Share Posted December 8, 2011 yeah I borowed £90 for about a week and paid back £100, if you need the money and can't borrow it off anyone it is quick, it's in your account within the hour. I didn't mind paying that tenner as I needed the money and knew that I had that money coming in. There definately is a danger though if you can't pay it back and then end up juggling loans between different sites. Link to comment Share on other sites More sharing options...
Harleyman Posted December 8, 2011 Share Posted December 8, 2011 I've seen in the US that the payday industry is big so it goes without saying the UK will follow. One of the popular payday companies (dunno if naming them will be permitted so lets just say it rhymes with Conga) advertises their APR at Representative APR 4214% that's not a typo 4214%.......and it's legal. Clark Howard who is a leading authority on financial affairs in the US and hosts a weekly one hour TV program on the subject outright and openly condemned the idea of payday loans. Payday loans however are perfectly legal in the US for anyone desperate and unwise enough to take one. Link to comment Share on other sites More sharing options...
Stranza Posted December 8, 2011 Share Posted December 8, 2011 Clark Howard who is a leading authority on financial affairs in the US and hosts a weekly one hour TV program on the subject outright and openly condemned the idea of payday loans. Payday loans however are perfectly legal in the US for anyone desperate and unwise enough to take one. The small amount that you pay on the short term can sound reasonable, I think that's the worst part about payday loans. They make them sound reasonable because the charge is only for the month and not annual. In Sheffield a quick google will show the credit unions max APR is 26.8% on the condition that you start a savings plan of min £1 per week. These loans are available to low income/benefits/workers but they do need people to be able to repay and they don't offer loans instantly that day, but they do encourage saving and savers are less likely to need emergency loans so it begins a better habit. I would hate to be in a position where I had these legal sharks as my only option. The trend for having it all and having it now has spread to these financial products, scarey. Link to comment Share on other sites More sharing options...
Harleyman Posted December 8, 2011 Share Posted December 8, 2011 The small amount that you pay on the short term can sound reasonable, I think that's the worst part about payday loans. They make them sound reasonable because the charge is only for the month and not annual. In Sheffield a quick google will show the credit unions max APR is 26.8% on the condition that you start a savings plan of min £1 per week. These loans are available to low income/benefits/workers but they do need people to be able to repay and they don't offer loans instantly that day, but they do encourage saving and savers are less likely to need emergency loans so it begins a better habit. I would hate to be in a position where I had these legal sharks as my only option. The trend for having it all and having it now has spread to these financial products, scarey. I've never had to take out a payday loan either. From what I know of them here in the US the borrower is required to show proof of employment by producing a paycheck stub and of course personal details and the interest rate is horrendous according to financial guru Clark Howard You see these payday loan oulets usually in small shopping centers. The sad reality in this present day economy is that a sizeable percentage of the working population are about two paychecks away from falling into poverty. The percentage will only increase as the Baby Boomer generation reach retirement in ever increasing numbers. The fault though lies largely with them due to the fact that they never made any serious attempt to save and invest for their retirement and instead will have to rely soley on Social Security benefits which top out at around 1500 dollars a month and which are subject to income tax and 100 dollars a month pre-deducted by the government towards Medicare coverage. That leaves an annual income of less that 18,000 dollars a year. Hardly enough for even a retired couple to live a half decent life on. Link to comment Share on other sites More sharing options...
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