GrapeApe 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? Its shows that people who have poor credit ratings have to pay shed-loads more in interest. Just another way in which the rich get richer at the expense of the poor Link to comment Share on other sites More sharing options...
Leah-Lacie Posted December 10, 2011 Share Posted December 10, 2011 I once took out a loan with Provident I had a few days off work and was really low on money, and their leaflet came through the door. I rang up for £200, and a woman brought it round within an hour, and gave me a talk about how it worked. My £200 would be paid back at a rate agreed by us, and the length of time and APR would depend on the amount I wanted to pay back per week, I decided to go with the minimum, £10 per week, which would then take 31 weeks to pay, so I repaid £310. Had I only had it for 2 or 3 weeks, the amount repaid would have been much lower. I probably should have done that now I think about it, but I figured at the time that £10 a week would be easier to handle paying out than £75 or £100, especially as I was on a quite low monthly wage. Link to comment Share on other sites More sharing options...
truman Posted December 10, 2011 Share Posted December 10, 2011 Its shows that people who have poor credit ratings have to pay shed-loads more in interest. Just another way in which the rich get richer at the expense of the poor Nope,just shows that those who don't pay their debts are a higher risk than those who do.... Link to comment Share on other sites More sharing options...
Stranza Posted December 10, 2011 Share Posted December 10, 2011 I once took out a loan with Provident I had a few days off work and was really low on money, and their leaflet came through the door. I rang up for £200, and a woman brought it round within an hour, and gave me a talk about how it worked. My £200 would be paid back at a rate agreed by us, and the length of time and APR would depend on the amount I wanted to pay back per week, I decided to go with the minimum, £10 per week, which would then take 31 weeks to pay, so I repaid £310. Had I only had it for 2 or 3 weeks, the amount repaid would have been much lower. I probably should have done that now I think about it, but I figured at the time that £10 a week would be easier to handle paying out than £75 or £100, especially as I was on a quite low monthly wage. That's how they lure you in Leah they never used to say the APR but now they have to legally they just gloss over it and break it down into weekly payments not saying how much of it is your loan and how much charges. At £10 per week you would be paying around £3.50 of interest and if that was over 52 weeks it would work out around £180 so not far off an APR of 100%. It's hard enough to manage these days without people legally leeching on us, maybe I'm biased against them, when I was growing up our family had a series of 'collectors' we had a Tuesday man, Wednesday Betty, Friday Uncle Brian (worse thing is I really DID think he was related he was there so much:rant:) and Saturday was the day we paid the tick in the stores. Now they are worse selling more complex financial products at the door and also in peoples homes pretending to be friendly and understanding but really just wanting you to roll your loan or renew it so they can charge interest on the new loan amount and any prior loans still owed, which you already paid the interest on so now your paying interest on the interest! I tell them exactly what I think of em when they knock my door Link to comment Share on other sites More sharing options...
LaFrancaise Posted December 12, 2011 Share Posted December 12, 2011 It's a shame that credit Unions aren't advertised more, they loan small amounts of money to people who are unable to borrow from the banks ect, although you pay interest on the loan it is a very reasonable amount. Link to comment Share on other sites More sharing options...
sedith Posted December 12, 2011 Share Posted December 12, 2011 Pay Day Loans, like Lottery scratch cards are a hidden tax on the desperate and stupid! Link to comment Share on other sites More sharing options...
sedith Posted December 12, 2011 Share Posted December 12, 2011 Another case of SF moderators taking the high moral ground? Churchwood Finance being allowed to advertise within this thread on their site? Fanning the flames or what? 24hr Debt Loan Decision UK Call Centre - We Always Say Yes Arrears, Defaults & CCJ's Are OK ... Absolutely unbelievable! Link to comment Share on other sites More sharing options...
shane39 Posted December 13, 2011 Share Posted December 13, 2011 It's not just people on low wages who need money fast. I have seen some jolly expensive watches in one of the local pawn shops.It's also quite popular for small businesses to use pawn shops when banks turn them down. How much would a mainstream bank charge for a couple of weeks for an unauthorised overdraft? Payday loan companys prefer their clients to roll the debt on,coz that's where the real money is. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.