truman Posted October 31, 2012 Share Posted October 31, 2012 True, but their public spending is ridiculous and they're about to destroy the economy via massive taxation to try to pay for this socialist dream world. Hence Loob's final sentence.. "The downside of course, is that their welfare deficit is way more screwed up than ours. " Link to comment Share on other sites More sharing options...
L00b Posted October 31, 2012 Share Posted October 31, 2012 So there is no black marking for someone who constantly defaults on debts?Of course there is It's not because credit applications are much more scrutinised and researched before approval (or denial), that people don't have a credit record. What I meant to say earlier was that the decision to grant or deny a credit application is not 'automated' like it is here, where there is some sort of 'central database' shared by most credit providers, accessible and apt to decide in near-real time (In 2008, I was offerred 0% finance for about £2k at IKEA in less than 5 minutes...I'd only been back in the UK a week if that, after a 4 year absence, and did not even have a first payslip or anything! That's to say how long you 'stay in the system' in the UK, and how quickly/easily an interested party can get vital stats). AFAIK over there a bank manager has to formally request your credit report/score after you apply, as part and parcel of that procedure (he can't just 'get it' from an Experian-like web outfit). Think of it as a FoI request procedure by the banker. And you can have a stellar 'credit score', but you'll still have to sit with the bank manager and go through much figures and evidence before he/she yays or nays it. Link to comment Share on other sites More sharing options...
Cyclone Posted October 31, 2012 Share Posted October 31, 2012 So it's just a slower manual system of doing a credit check. And presumably the inability to charge more than a few % above the prevailing APR means that high risk customers, no matter the rest of the process about pay slips and income, simply will not be given a loan because they are high risk and an appropriate APR cannot be charged without breaking the law. Which (for that individual) precipitates a crisis point quicker, but at least stops them getting up to the eyeballs in incredibly expensive debt to legal loan sharks. Personally I'd like to see something more relaxed but similar in this country. If the risk profile indicates an APR of 2000% should be charged, then frankly it's irresponsible to lend to that person, but within 5% of the average is far too small a range IMO. Maybe with double of the average would be more appropriate. Link to comment Share on other sites More sharing options...
L00b Posted October 31, 2012 Share Posted October 31, 2012 So it's just a slower manual system of doing a credit check. And presumably the inability to charge more than a few % above the prevailing APR means that high risk customers, no matter the rest of the process about pay slips and income, simply will not be given a loan because they are high risk and an appropriate APR cannot be charged without breaking the law. Which (for that individual) precipitates a crisis point quicker, but at least stops them getting up to the eyeballs in incredibly expensive debt to legal loan sharks. Exactly Maybe with double of the average would be more appropriate.It used to be exactly that (double the rate of the obligations market) for a long long time, but monetary crises in the early 90s led to the new (133%) definition, for legal reasons (that are well beyond me). Link to comment Share on other sites More sharing options...
Ms Macbeth Posted October 31, 2012 Share Posted October 31, 2012 If food aid is required should we enforce the sale of goods - is it appropriate for people to hold onto valuables and obtain free food when others go without/sell stuff/pawn it to buy food.? I felt genuine sympathy for the predicament of some of the people on last nights programme, but absolute disbelief at some of them. Their standard of living whilst receiving food charity is better than some of my friends. I watched the programme too, and it was fairly obvious from some participants that their inability to buy food and other necessities was due to the repayment of loans being taken from their accounts as soon as their benefits went in. There are ways to get these loan repayments reduced, I hope the programme makers pointed them in the direction of advisors and credit unions. I agree about the standard of living, but working as I did in housing I came across people with strange priorities (strange to me at any rate). A young man who was forever missing his rent, because he said people would come knocking for what he owed. He didn't seem to understand that if he didn't keep his rent up to date, there would be no door to knock on. I've been in some houses that are a step up from hovels, where cleaning materials (and the will to use them) haven't been on the shopping list! However there has been all sorts of electronic stuff, or a huge trampoline in the garden. And those weren't homes where someone had recently lost their job, these were long term unemployed. I think some folk don't really understand what benefits are for. Housing, food, heat and light should always be the priorities, especially if they have kids to look after. Anything else should come way down the line. I've lived on the breadline with young children, and it isn't fun. But it can be done. Many parents do manage to give their kids a reasonable life on low incomes, because they prioritise sensibly. Link to comment Share on other sites More sharing options...
Super Hans Posted October 31, 2012 Share Posted October 31, 2012 People can't budget. If people need help from the state - Benefits, hand them out in food and necessities or coupons. Simple. I wonder how many of those people needing aid smoke. A disproportionate amount I bet. Link to comment Share on other sites More sharing options...
Anna B Posted November 1, 2012 Share Posted November 1, 2012 What people seem to forget is that payday loans are designed as very short term loans. That's why I think the APR rate should be taken with a pinch of salt, these type of loans are not designed to be payed back over along period of time, but people still bang on about ARP APR APR. Borrow £200 from Wonga and pay it back in a weeks time, it will cost you less than £20 in intrest and fees. If people are desperate enough to borrow from a payday loans company, chances are they will not be able to afford to pay it back. Link to comment Share on other sites More sharing options...
S10mainly Posted November 1, 2012 Share Posted November 1, 2012 I was standing outside Brighthouse at Moorfoot earlier, and looking through the window all the items I saw for "sale" where huge sofas and televisions? Surely if you cant actually afford anything, its more sensible to buy stuff that is a bit less expensive to start with? Link to comment Share on other sites More sharing options...
L00b Posted November 1, 2012 Share Posted November 1, 2012 I was standing outside Brighthouse at Moorfoot earlier, and looking through the window all the items I saw for "sale" where huge sofas and televisions?I'm surprised you missed their APRs...they're the biggest thing in their shop windows by far! Link to comment Share on other sites More sharing options...
truman Posted November 1, 2012 Share Posted November 1, 2012 I'm surprised you missed their APRs...they're the biggest thing in their shop windows by far! APR? What's that then? is it important? Link to comment Share on other sites More sharing options...
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