1291% apr loan

tom_e · 12 Jul 2017 at 16:51

adolf hamster said:
tbf it's kinda justified, i can't think of any scenario where a payday loan is the only legitimate option. these people prey on those who have poor money management skills, and no friends/family from whom they could borrow the same amount.

They're an option for the people who would have in other times turned to the sort of person who'd have no qualms charging incredible interest and then breaking bones because they know they'd never be able to keep up repayments.
There are plenty of people who'd take that option because it really was their only choice so while they're still not great and do prey on those in need to a degree they're still a much better option than that.

adolf hamster · 12 Jul 2017 at 16:58

tom_e said:
They're an option for the people who would have in other times turned to the sort of person who'd have no qualms charging incredible interest and then breaking bones because they know they'd never be able to keep up repayments.
There are plenty of people who'd take that option because it really was their only choice so while they're still not great and do prey on those in need to a degree they're still a much better option than that.

in this modern world of the welfare state, i still can't see how someone needs to get that far.

there's a lot of things people think they need but don't really, yes they're better than loan sharks but in a world where you can live (albeit not fancy, roof over your head and food on the table and that's it) it's not needed.

too many folk think they need smartphones, fast internet, big tv's, consoles, sky tv etc when in reality a £10 phone on payg, a £5 tv off gumtree, and using the internet facilities at the local library are enough to live on.

Beasty · 12 Jul 2017 at 17:29

leemk said:
Just saw an add on TV for Sunny loans with an APR of 1291%.
Thats borrowing £1000 for 12 mths and paying nearly £13000 back , Jesus no wonder people get in financial difficulty.

I get it that if you were to have a loan for 12 months then yes that's a lot but usually the idea is you pay it back pretty damn fast. I did do the odd wonga loan when I was younger, foolish or not!

Housey · 12 Jul 2017 at 18:06

Vargas said:
Unfortunately those lenders prey on people, they are scum.

Whilst I agree with your comment on the lenders to some extent, it does imply that the people themselves have no responsibility, which is the main ingredient of over stretching Britain.

adolf hamster · 12 Jul 2017 at 18:09

Housey said:
Whilst I agree with your comment on the lenders to some extent, it does imply that the people themselves have no responsibility, which is the main ingredient of over stretching Britain.

the problem then is education, basic accountancy is hardly a complicated subject, all you need to do is ensure that per-month your income is equal to your expenditure and the mathematics is not exactly hard to master for that.

kaku · 12 Jul 2017 at 18:15

adolf hamster said:
the problem then is education, basic accountancy is hardly a complicated subject, all you need to do is ensure that per-month your income is equal to your expenditure and the mathematics is not exactly hard to master for that.

You could teach yourself basic accountancy skills for free at your local library (or even anywhere with an internet connection). Far easier though to complain that nobody went far enough out of their way to teach you!

My personal gripe with payday loan companies (and other "low monthlies innit" finance products) is that whilst they're inherently risky, they're mainly focused at funneling public benefit money into private profits. Nobody cares about the total cost of the loan because they're never going to be earning enough for it to matter - you only have to budget against your weekly dole money and suddenly everything seems a whole lot easier.

Rannoch · 12 Jul 2017 at 18:24

Housey said:
Whilst I agree with your comment on the lenders to some extent, it does imply that the people themselves have no responsibility, which is the main ingredient of over stretching Britain.

This is true. I don't have to look too far to see it, my sister is a prime example of someone who over spends and borrows.

adolf hamster · 12 Jul 2017 at 18:26

kaku said:
You could teach yourself basic accountancy skills for free at your local library (or even anywhere with an internet connection). Far easier though to complain that nobody went far enough out of their way to teach you!

My personal gripe with payday loan companies (and other "low monthlies innit" finance products) is that whilst they're inherently risky, they're mainly focused at funneling public benefit money into private profits. Nobody cares about the total cost of the loan because they're never going to be earning enough for it to matter - you only have to budget against your weekly dole money and suddenly everything seems a whole lot easier.

indeed, we live in a world of complainers, but it wouldn't be that hard to cover the state's backside so to speak. i didn't learn anything about budgeting in school, i learned only from my mother (who thank whoever's listening is an accountant who understands money), schools teach the basic math but not how it can be applied in the real world....

platinum87 · 12 Jul 2017 at 18:41

Tefal said:
From wiki

So it may be theres some fees included in the Apr that won't be in your interest calc

Yes i thought that at the start, but clearly it says no fees in massive text on their site...

Rroff · 12 Jul 2017 at 19:01

Ayahuasca said:
I can just picture the type of bloke running that company.

I went to school with a guy that owns one of the payday loan groups - kind of insidious and slimy just the way he ingratiates himself with people used to turn my stomach for want of a better way of putting it. On the flipside though I learnt a lot from seeing him in action so I'm not so easily taken in today.

Housey · 12 Jul 2017 at 19:17

The problem with Payday Loan companies is the usage model is not how most people use it. If you for example take out a payday loan for a couple of days, you know, until payday then the cost model is probably better than an unauthorised overdraft. The real issue is and the people who offer these 'services' know this, that most people just see them as available cash that they will eventually pay off and that is where the issue exists. The 'time rich poor' are their target market and they thrive on the fact that when you have nothing you 'deserve' a new telly and Sky BECAUSE you are time rich and your life is rubbish.

Really gutter end of the market but it wouldn't exist if the 'time rich poor' in the main didn't fuel it......but then they have nothing and they deserve a 55" TV and Sky....said a man once.