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Loans
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Entwisi started a thread about "Interest rate rise"
the same day a guy came to my door with a leaflet in his had and said would i like some vouchers i can spend them at most shops . i said no thanks and he said well can i give you this just incase you change your mind i said fine and he left On looking at the leaflet you can borrow £100 worth of vouchers but just look at the APR on this :) if you cant read it it says APR 440.03% |
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HOLY SHI7! Hope he doesnt come on to monk st mick lol. i would have thrown it at him. And why the hell would i want vouchers? If i did want anything from them stores id use the cash in my wallet.
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ive never ever had one of those loans, or any loan at all in my life, there's just no need for them, if i want something that bad, i save up for it or do without
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Provident, ELML, Greenwoods.
All Cons stupid interest, to get people who cant afford debt into debt.:mad: |
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A few times i've taken out a loan,but only if the circumstances were extreme.I've always gone to my bank though,and taken out the appropriate insurance should i be ill or lose my job.At least with a high street bank you know you wont get the heavies coming round if you default on the payments,and the intrest rates are'nt extortionate.As for the vouchers,Tadah says it all.
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That should be against the law Mick, some unfortunate person wouldn't notice that, I think its disgusting.
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Its probably some legal way round the law for loan sharks, probably legal to sell vouchers but not lend you cash :confused:
If you want it save for it, if you cant afford it dont buy it, only good credit is interest free credit as long as you DO pay it off within the time scale, keeps your cash in your account a bit longer. same with credit cards, use them to get your points/airmiles or whatever and pay it off within the 28 days. |
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It's not against the law not to pay them back either, you should have took the £100 and then let them whistle Dixie for their money, as mentioned Greenwoods or any of the other dear money merchants work on the theory that 30% wont pay anyway, hence the high interest rates.
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Unless the company is one of those that sends the heavies round to encourage you to pay up. |
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That interest rate is appalling ! :eek:
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that is so scary, especially if they knock on the door of someone who is desperate and doesn't look too closely at the APR!! :mad:
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The poor get poorer, and the rich get richer.:(
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Unfortunately i have been the position & still am to a point of these loan sharks, when u have little income, dont have a good credit score & cant get loans of other means, banks etc dont want to know a low income person - gee cant even get a switch card with no over draft facility, ok to be able to save up for things if u have the spare to do so but alot of what started me on by prey of these company types was that i desperately needed to get stuff, like furniture as i started from scratch a few times when marraige broke down & was no other alternative - plus at least with one of these companies the offer of minimal weekly payment & that now i have a good credit with them that if something brakes down like fridge, washer or sofa i can replace it if i need to as long as i can afford the payments per week. These people abuse a market of desperation but a way of getting a loan where many of us wouldnt have a chance & definately would do without a need & to some puts a temptation there of money, vouchers or catalogue to those that dont need & cant afford to resist, its quite a viscious circle & the only people that really win is the company plus they have good sales tactics that can hook. Unfortunatley the realisation hits in when things go wrong or u get more than u can keep up with, i got a sofa thro them & its not lasted 11mnths which should of gone back & replaced - they have dragged their heels so much i was the one sending the heavy letter to get it resolved & im still waiting.
Rindy is so right the poorer end of people pay out a hell of a lot more than those can afford it, like pay as u go stuff, eleccy & gas cards, u are charged more than getting into a bill situation that not well off try to avoid only to be stung anyways, even as far as debt if u own your own home u can get a lot written off in right channels, not many companies with good apr rates want to know a tenant for loan or debt help other than cab. |
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Do not misunderstand me accymel or garinda, due to ill health all my money has now gone, the only thing of value my wife and I have left is our house, and we can't spend that. We have prepayment meters for gas and electricity which costs 12% more than if you pay by direct debit, the only banking facility I now have is my 'pension' money current only a/c with a 'hole in the wall card', this has just been upgraded to a debit card for shopping purposes and the banks convenience not mine. If you are over 60 you can do a deal through age concern and pay one bill per month for both utilities, I am at present just setting this up so I do not know how much a month it will cost yet, yes life is tough at the bottom. It currently cost on average £45 per wk for gas and electricity, for two of us, My incapacity is £92 per wk, the economics of Mr Micawber.
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I don't misunderstand you at all, I agree with your point.
If you have money, things are cheaper. Loans, utilities bills, etc. |
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These loan companies know that people on benefits cannot get credit and offering them £100 cash now at only £5 per week for 30 weeks + sounds good when its a scandalous rate of interest. I would hate to be a collector, the amount of people that 'arnt in' when you call must be high.:D |
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Well just to show how bad it is here is a taster from a spam mail as far as i am concerned;
http://www.providentpersonalcredit.c...aw&affid=66819 |
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I have a Provident Loan, I know it is a huge APR but at the time I really needed some money. I pay it back at £6 a week, I dont even notice this anymore, and it does go down quickly because I dont think about it.
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Provident have tried to rip both my sister £100. and my misses £65.00.:mad: |
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Thats fair enough Lolly but can you pay extra if you had it to bring it down quicker?
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She said the amount on the book to which I replied that included interest upto the end of the load will it not be Pro Rata down or at least reduced. The answer was NO. although I didnt take it further. |
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I've said this before about Credit Unions.
If you become a member you can get cheap loans, 1% APR a month on the falling amount. Hyndburn has now got a credit union. You can become a member of the credit union if you live or work within the boundary. The one i am a volunteer of is HHH Credit Union - Haslingden, Helmshore and now Hyndburn. To get a loan all you have to do is save regularly for 13 weeks and then you are able to get a loan. A few years ago Provident pushed a leaflet through one of our volunteers door offering £80 in vouchers and by the time you paid it back you would have paid £126. We worked it out if you borrowed £80 from the credit union you would pay back £84. Plus that would set you up in good stead for your next loan because when you pay back your loan you save at the same time. I'll put the telephone number of the credit union on here if thats ok and you can ring them anytime Mon - Friday and they will answer any questions you have. 01706 215082. |
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What do u mean save regularly for 13 weeks for Jen :confused:
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They sound like a good idea Jen and would suit the people who are stuggling.
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Save for 13 weeks - say put £2 a week into your account. This is for you to build some savings and also to show you will be a regular saver. Then you can get a loan of £52. You can have up to a year to pay it back. When you pay it back you agree to save £1 a week as well. So when you've paid back your loan of £52 say over 26 weeks - then you've paid another £26 into your account and if you've paid it back regularly and on time etc. The next loan can be up to £130. because you have £52 in your account and because you've paid your other loan back regularly you can have 2 1/2 times whats in your account.
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Any more info on this please. without having to ring. |
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Thats very useful info jen and prob more benificial to people on low incomes ....blackpool could do with something like that..
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Things is where the difference is why these 'sharks' come into it tho is that a loan is given with out the save bit, some people cant do that initially then once a loan is needed/taken then the money is found at a rob peter to pay paul balance per week - seriously!
You need a washer say cost £159, you have no washer atm & washing in the bath [yes done that a fair few times] you cant really save for 13weeks [3 mnths] then to get the loan, but with the sharks that knock on the door [usually at these timed moments too] who are they going to go with realistically ???? get now not later sort of thing! Even harder to break the mould once u have a regular credit shark - all intentions of not renewing a loan once paid up [bloody something else goes/needs replacing] & hey presto the sales are soon quick to make an offer so tempting - even more on a need basis - thats where they have u by the short & curlies!! Dont get me wrong Jen the credit union is a good idea, wish that was plugged more as many dont know it exists, but will take up that once i can get my payments down on this lot, one loan finished & yeh i didnt renew & praying nowt i need comes up but mind u have funded myself a bit easier this time. |
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I've borrowed this of lancashire county council website:
News : Expansion for credit union Monday, 7th August 2006 (PR06/0296) SAVERS and borrowers now have a third Hyndburn venue for their financial transactions. Credit Union members in the area could formerly save and borrow only at collection points in Clayton le Moors (Willow Close Community Centre; 6.00 - 7.00pm each Friday and the Neighbourhood Management Office in Arthur Street; 10.00-11.00am each Saturday). A new collection point has now been opened at the Citizens’ Advice Bureau at the New Era Centre on Paradise Street, Accrington. It will operate each Friday from 11.00am to 1.00pm. Membership of the HHH Credit Union which is based in Haslingden and draws membership from people who either live or work in Hyndburn or Haslingden. It gives access to low-interest loans and the chance to start a regular saving habit. Lancashire County Developments Ltd, Lancashire County Council’s economic development company, works closely with credit unions across the county as a means of helping people to financial independence. County Councillor Wendy Dwyer, herself a member of the credit union, said: “Some credit union members are people who are unable to get ordinary bank accounts while others are just those who want to save money and budget their spending in a planned way. “They can only start borrowing money once they have opened their account, show they have the ability to repay and want to save regularly. There are no hidden charges and the loan interest is based on 1% of the reducing balance at the end of each month. I firmly believe the work of credit unions is keeping people out of the clutch of the door-step lenders.” The new collection point has facilities for processing deposits, withdrawals and low-cost loans. Payments may be made in cash, cheque, benefit transfers or standing orders. Bill Greenwood, HHHCU director, added: “The amount that members save does not matter – it is the regularity of saving that counts. From the surplus income generated each year the member receives a dividend which is based on their average savings. Between the existing collection points in Haslingden and Clayton le Moors we have 650 members with a current total shareholding of £172,000. HHH Credit Union is a not-for-profit community cooperative owned and managed by its members.” “Extending into Accrington will mean more people than ever will now be able to access low-cost loans and an opportunity to help themselves.” If you would like more information, call in at one of the collection points or ring 01706 215082 for an information pack. |
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Thank you all for the karma.
Ive talked about credit unions before on here and i didnt know that not many people knew about them. Sorry for witholding information from you all. |
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google brought this up cherokee if this is any use, not quite blackpool but seems the closest.
http://www.google.co.uk/maps?hl=en&q...FIiW2wL915iBCg |
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Credit Unions are an excellent idea to compete against loan sharks. Even if you only save a small amount it's worth starting if you've never saved before. The TSB used to be there for the small saver at one time (and the Yorkshire Penny Bank) but once they started to compete with the big banks and floated on the stock market that was the end of what they originally stood for.
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so if i bought £100 worth vouchers from them
in a yr how much wud i have to pay back? 540? |
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By the way credit unions are run by the community for the community. They are not a profit organisation. Any profits after all the expenditure for staff, premises etc are given back to the people who are members as a dividend. Just like a bank who give you interest every year credit unions give you a dividend.
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There you are mani - thats providents loan calculator. HHH Credit Union only deals in cash. They dont do vouchers. |
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shillelegh is right credit unions will be the death of the provident, greenwoods, alpha, and the rest of the expensive money merchants, I read in this thread earlier "my agent is like a family friend" they train them to be like that, they laugh their cocks off when they get through the door ,wise up. If you owe money to any parasite , borrow it off a credit union and pay the shark off without interest ,no county court in the land will make you pay any more than the borrowed sum ,never mind their small print. As for credit ratings being affected so what ,if your credit was good you wouldn't need these parasites in the first place.
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http://www.credit-card-application-o...pr-formula.gif A simplified formula for working out APR is (1+m)^12-1, where m is the monthly rate. taken from:- Calculating Credit Card APR |
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:D simple as that? wow!
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