What The F... ...oolishness Is Going On?

[Less]

I have been looking for a cash cow, erm I mean, a cash lady all my life.

No joy so far, nearest I've ever got is Ms Spendalot Guaranteed to take my overdraft further than I could either afford or even imagine.

Then I spy an ad' on the good old haunted fish tank.

Not only does she exist but she's bouncing back from her own bankruptcy but doing it by coaxing other women to go there to pay off her own.
Surely this isn't the image high cost loans should be putting before the irresponsible?

Ex-bankrupt Kerry Katona fronts payday loan ad campaign - Telegraph

[DtheP47]

Originally Posted by Less

I have been looking for a cash cow, erm I mean, a cash lady all my life.

Well you have a cashman already Wizz.... are they collectibles like those NatWest piggy banks they used to give out?

[jaysay]

Originally Posted by Less

I have been looking for a cash cow, erm I mean, a cash lady all my life.

No joy so far, nearest I've ever got is Ms Spendalot Guaranteed to take my overdraft further than I could either afford or even imagine.

Then I spy an ad' on the good old haunted fish tank.

Not only does she exist but she's bouncing back from her own bankruptcy but doing it by coaxing other women to go there to pay off her own.
Surely this isn't the image high cost loans should be putting before the irresponsible?

Ex-bankrupt Kerry Katona fronts payday loan ad campaign - Telegraph

Marvelous, they're using a real role model aren't they, when these people take these loans out do they never look at the APR which in a lot of cases is over 2000%

[accyman]

is teh advert trying to tell us that if you cant afford your cocaine then use them for a quick fix loan ?

[Sunflower49]

I can just imagine it-Ms pink tracksuit'll be sitting there with her pot noodle and chips watching the ad and she'll think 'Hm I've spent too much of my income support on orange foundation recently and now I can't afford the latest smartphone!If Kerry Katona doesn't care about being in debt and this payday loan thing is good enough for her, then I can do it, innit!'
*This is if these sorts of people have a thought process system, at all.
** Payday loan indeed. More like JSA day loan....
*** I have nothing against pink tracksuits, I was stereotyping, I'll be very sorry in a later life.

[Sunflower49]

I'm wrong actually-I'm sure these sorts of loans are usually available only if the debtor has a job.
Katona doing it is a bit of a joke-and their APR is scary. Some people just don't care about debt, I can see why-it's just a fact of life for so many.

[Neil]

Originally Posted by jaysay

Marvelous, they're using a real role model aren't they, when these people take these loans out do they never look at the APR which in a lot of cases is over 2000%

Why does the APR matter?
These loans are supposed to be short term for a couple of weeks until you get paid. If you borrow £100 to pay a bill and you have to pay back £110 then the loan cost you £10. The bank charges for missing that bill payment could be £30 so you saved £20.

Please don't just jump on certain MP's bandwagon about pay day loans without looking at who they may be good for.

[janloot]

the apr certainly matters, especially if for some unforseen circumstance,its not paid in time, "supposed to be short term" is the key if you are stuck for a hundred quid, and its not paid, the out come is frightening,

[Neil]

Originally Posted by janloot

the apr certainly matters, especially if for some unforseen circumstance,its not paid in time, "supposed to be short term" is the key if you are stuck for a hundred quid, and its not paid, the out come is frightening,

You enter into a contract with them to pay it within a certain time.

Just did a Wonga and £100 for 7 days will cost you £112.78. That's only £12.78 profit for them which includes their costs and the risk they take that you will pay it back.

How much do you think they should charge you for borrowing £100 for a week?

Would you be more happy if they charged you a lower APR but charged an administration fee?

[jaysay]

Originally Posted by Neil

Why does the APR matter?
These loans are supposed to be short term for a couple of weeks until you get paid. If you borrow £100 to pay a bill and you have to pay back £110 then the loan cost you £10. The bank charges for missing that bill payment could be £30 so you saved £20.

Please don't just jump on certain MP's bandwagon about pay day loans without looking at who they may be good for.

That's all well and good Neil, but how many FAIL to pay it back within the period and end up paying an arm and a leg, there are countless numbers who fall into this trap and end up in dire straights through it

[jaysay]

Originally Posted by Neil

You enter into a contract with them to pay it within a certain time.

Just did a Wonga and £100 for 7 days will cost you £112.78. That's only £12.78 profit for them which includes their costs and the risk they take that you will pay it back.

How much do you think they should charge you for borrowing £100 for a week?

Would you be more happy if they charged you a lower APR but charged an administration fee?

These firms have only come on the market quite recently in real terms, why, because they know that people these days don't care about how much debt they're in, the idea is not to put yourselves in that position in the first place

[tommiasfc]

Originally Posted by jaysay

That's all well and good Neil, but how many FAIL to pay it back within the period and end up paying an arm and a leg, there are countless numbers who fall into this trap and end up in dire straights through it

I'm sorry but as Niel said they cost allot less than bank charges, I was on the side of these companies being ridiculous until somebody I know told me they've used them and its saved them over £100 in bank charges. When you look at out that way they're doing a good service. If you fail to pay it back its your own fault, you should weigh up the risk before taking it out. Its a simple process and its all there in black and white.

If you use these places for anything other than paying a bill before payday like buying something then you deserve the huge Apr in my opinion.

[jaysay]

Originally Posted by tommiasfc

I'm sorry but as Niel said they cost allot less than bank charges, I was on the side of these companies being ridiculous until somebody I know told me they've used them and its saved them over £100 in bank charges. When you look at out that way they're doing a good service. If you fail to pay it back its your own fault, you should weigh up the risk before taking it out. Its a simple process and its all there in black and white.

If you use these places for anything other than paying a bill before payday like buying something then you deserve the huge Apr in my opinion.

Quite right tommi, if they are used in the correct way, but a lot of people who can't manage their finances fall into the trap and it makes things worse than ever and sends them deeper into debt, they say in adverts that stringent checks are carried out to make sure those given these loans are capable of paying the money back, but when somebody like Wonga say you can have the money in your account in 15 minutes, there ain't a lot of checking going on there is there

[Sunflower49]

I've known folk have loans for three or four of these companies all at the same time. I don't know, I was always a believer that if you haven't got it you don't spend it, but there are circumstances in which I don't follow that.
They are better than accumulating bank charges, but I hate the way people who are in trouble with them, shift the blame to the companies themselves...

[jaysay]

Originally Posted by sugarmouse0707

I've known folk have loans for three or four of these companies all at the same time. I don't know, I was always a believer that if you haven't got it you don't spend it, but there are circumstances in which I don't follow that.
They are better than accumulating bank charges, but I hate the way people who are in trouble with them, shift the blame to the companies themselves...

I'm 67 years of age in a couple of months and I've never borrowed money from anybody, never bought anything on HP (if I've wanted anything I've saved for it) I've had a Mortgage, as have a lot of people, but we're now in the age of buy now pay latter, or in other words a false economy.

Many years ago I used to frequent the Great Tree pub in Hassy, and a lad I knew from Ossy was also a regular, one night he asked me if I could lend him a couple of quid until he got his Giro, which I did. When he got his Giro he gave me the money back as soon as he came in the pub, but this started a cycle, he started asking me every week, until I decided to end it once and for all, he came to give it me back and I just, na its right, you keep it, then you'll never need to borrow it again, never asked me again