6% for savings?

v8owner

Just received the latest Martin's Money Tips email. The Money Moral Dilemma at the bottom was interesting. I for one would be very happy to pay 6% on a loan to pay off my credit card.

Why doesn't MSE offer a service whereby savers "deposit" funds with MSE which then "lends" these to borrowers at say 6.5% interest? MSE could use the .5% interest for administration fees; savers would get a decent rate of return, and borrowers could pay off expensive credit cards.

Yes?No?Bovvered?

bendix

There are already web-based services like this. One was covered in the press extensively last week.

v8owner

bendix wrote: »

There are already web-based services like this. One was covered in the press extensively last week.

Which one? (or if you don't want to post the name, which press covered it?)

Milarky

v8owner wrote: »

Which one? (or if you don't want to post the name, which press covered it?)

Google 'ZOPA'

gozomark

v8owner wrote: »

Just received the latest Martin's Money Tips email. The Money Moral Dilemma at the bottom was interesting. I for one would be very happy to pay 6% on a loan to pay off my credit card.

Why doesn't MSE offer a service whereby savers "deposit" funds with MSE which then "lends" these to borrowers at say 6.5% interest? MSE could use the .5% interest for administration fees; savers would get a decent rate of return, and borrowers could pay off expensive credit cards.

Yes?No?Bovvered?

you are asuming no borrower defaults...

evenasus

v8owner wrote: »

Why doesn't MSE offer a service whereby savers "deposit" funds with MSE which then "lends" these to borrowers at say 6.5% interest? MSE could use the .5% interest for administration fees; savers would get a decent rate of return, and borrowers could pay off expensive credit cards.

Yes?No?Bovvered?

Apart from the financial legalities…

What happens when the people who have ‘borrowed’, can’t or won’t pay back the ‘loan’?
Who is going to cover the losses?

I would not lend money, which I knew was going to be borrowed by people that have run up credit card debt.

So it’s a ’no’ from me.

Farway

v8owner wrote: »

Just received the latest Martin's Money Tips email. The Money Moral Dilemma at the bottom was interesting. I for one would be very happy to pay 6% on a loan to pay off my credit card.

Why doesn't MSE offer a service whereby savers "deposit" funds with MSE which then "lends" these to borrowers at say 6.5% interest? MSE could use the .5% interest for administration fees; savers would get a decent rate of return, and borrowers could pay off expensive credit cards.

Yes?No?Bovvered?

As the answers above, plus MSE would need a Consumer Credit Licence from OFT to provide this

Once this was fairly easy to obtain, in fact I had one over ten years ago, but since then there has been a lot of new regulations, some led by MSE itself

So all in all I would say it is not worth Martin's while, especially as it could turn into an "own goal" if defaults and CCJs followed, can you imagine the Daily Mail headlines?

nzseries1

v8owner wrote: »

Why doesn't MSE offer a service whereby savers "deposit" funds with MSE which then "lends" these to borrowers at say 6.5% interest?

Why don't you?

v8owner

nzseries1 wrote: »

Why don't you?

'cos I'd be the borrower.

ray123

http://www.barclaycard.co.uk/personal-home/cards/simplicity/index.html

Try

ray123

http://www.barclaycard.co.uk/personal-home/cards/simplicity/index.html

Try this credit card. You can balance transfer from your current card and pay 6.8%.

http://www.moneysavingexpert.com/cards/best-0-credit-cards#stable


Barclaycard Simplicity. 6.8% APR standard rate

The lowest standard APR on the market is the Barclaycard Simplicity, which charges 6.8%, though there are reports that it can give low credit limits.

It's important to understand this rate is variable and could change. However, Barclaycard says there are no plans whatsoever to change the terms. I interpret that as meaning it should stay as a cheap non-switchers card for the foreseeable future, though the rate could vary slightly; so vigilance is always important.