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MSE News: Workers turn to payday loans
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Former_MSE_Helen
Posts: 2,382 Forumite
in Loans
"Workers are increasingly turning to payday loans firms because their wages run out before the end of the month..."
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Comments
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This doesnt surprise me one bit TBH.0
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The real austerity hasn't even begun. Fact.
People & the government have been living beyond their means for years time to start paying it back!
Instead you'll all yell 'NO MORE CUTS' = dump it all on my generation!
It's embarassing really, the pigs have started squealing a week before they're even due at the abbatoir.
Edit>> Bit of a rant there, unions getting involved in politics riles me up.
The answer is REAL changes in your standard of living. That might be ditching the car, cheaper housing, 2nd jobs... or do people honestly believe a debt spiral is sustainable?0 -
Reading this forum pretty much every worker who applies, loses thier job "just" before repayment day so it sounds like more for the dole queue..0
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Reading this forum pretty much every worker who applies, loses thier job "just" before repayment day so it sounds like more for the dole queue..
The fact that lots of people "lose their job" just before payment is due is a phenomena that ranks up their with the Bermunda Triangle, Roswell and Glenn Medeiros
"We want the finest wines available to humanity, we want them here, and we want them now!"0 -
Not for the first time, Unite - and especially their leader - are proving themselves utterly clueless. As Martin has pointed out a million times before, quoting interest rates for payday loans is pointless and irrelevant.
You also have to wonder what Unite's members are spending their salary on, if they claim to need a loan to cover rent and food. These are the *first* things that people should be paying for out of their salary, not the last. Perhaps Unite could conduct a survey into how many of their members spend more than £25 a month on their smartphone, how many have Sky TV, how many rent a house larger than they need, how much they spend on socialising, etc.
After voicing a multitude of ignorant, and on occasion offensive opinions recently, Len McCluskey should remember the mantra "it's better to be thought a fool than to open your mouth and remove all doubt".
He's clearly oblivious to the fact that this country's national debt issues were caused by his friends in the Labour party having absolutely no idea about how to run a country's finances, and not the rather easy (and wholly erroneous) target of "the bankers". They were the catalyst for the current economic situation, not the cause.0 -
Correct.Unite says that at such high levels of interest, it would take people three working days a month to pay back a loan of £200.
The same would be more or less true at 0% interest.
Borrowing £200 for 7 days with Wonga means you repay £219.69.
A horrible APR, certainly, but the chances are repaying £220 will take the same number of days working as repaying £200.
But the week beforehand, they handed over approximately three days' worth of wages to local shops and businesses."Instead of spending their wages in local shops and businesses, they are handing three days' worth over to companies like Wonga."
All that the local trade is missing out on is £19.69.
Meanwhile, others are paying nearly double this by using an unplanned overdraft for the last week before payday. E.g. with Halifax this would cost you £35.0 -
its a no brainer if you run out of cash a week before payday and you go to the loan sharks the maths say you will run out of money two weeks earlier next pay packet and the spiral continues until the lbm. Fact if you are having problems with cash then you need to stop and get advice from cccs or payplan. The other thing that gets me going is the fact that people see essentials such as sky and a mobile phone get in the real world the two items alone would on averaged set you back £50 a month. Fact the austerity measures have been mild to date their is far worse to come for example a 1% rise in the base rate what would that do to your monthly mortgage and don't think that because you don't have a mortgage it won't affect you in most cases it will because if you rent privately then their is a mortgage of some sort on that property and if the landlord has to pay more then sure as eggs is eggs you will cop the rise. Every one has to start living within their means that includes me its very hard especially if you have no choice but to get rid of sky and the mobile it will then give these payday sharks a rude awaking0
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The article claims two fifths need the money for rent/mortgage or food and 15% utility bills. So what are the rest using it for?
This article is nothing more than scaremongering (happens a lot on MSE). Yes, times are tough, jobs harder to get and wages frozen - but what we should all be doing is cutting back. Get rid of the car, mobile phone, Sky package. Stop borrowing money and start living according to your means.0 -
Haven't read the article yet, but I think it will be down to the TV advertising. I quite like the wonga adverts, and for somebody who impulsively needs a few quid, it would seem like a very easy solution.
I'm all for free choice but there are some products that I think the country doesn't need.:heartsmil When you find people who not only tolerate your quirks but celebrate them with glad cries of "Me too!" be sure to cherish them. Because these weirdos are your true family.0 -
The article claims two fifths need the money for rent/mortgage or food and 15% utility bills. So what are the rest using it for?
I agree entirely with your second paragraph, but I struggle to believe there are that many people who genuinely need payday loans to pay for essentials - as opposed to those who need a kick up the backside for spending £30 a week on ciggies, and the same every month for their iPhone contract. I'd argue that the figure using payday loans for rent/mortgage and food should be far lower.
Payday lenders should be there for emergencies, things that are outside your normal living costs, and I find it alarming that working people are apparently so incapable of budgeting that they need any kind of loan for food and shelter.
Unless, of course, this is Unite preparing us all for the next time they [STRIKE]hold the country to ransom[/STRIKE] strike over pay...0
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