Oh my gosh, I had to say something!

Charco_2

Sorry... sarcasm is hard to get across without hearing the inflections and tones in someone's voice!

On the otherhand, there's nothing like a good deal - and this is nothing like a good deal!

captainhaggis

I think the government should be allowed to cap the APRs these companies can charge. Let them come in higher than the high street lenders but APRs in to the thousands is immoral and should be illegal.

Charco_2

That's a good idea and will therefore probably never be brought forward.

However, something i thought i heard rumblings about again this week - and something we've been pushing for quite a while - is for these kinds of things to be taught properly in schools.

Numpty_Monkey

I think I can Top Trump that:eek::eek::eek:
it is fronm 2007
http://forums.moneysavingexpert.com/showthread.html?t=654129&highlight=

be careful out there boys and girls

captainhaggis

Charco wrote: »

However, something i thought i heard rumblings about again this week - and something we've been pushing for quite a while - is for these kinds of things to be taught properly in schools.

EXCELLENT. Pythagoras was, I'm sure, a nice chap.... but his theorem has done me no good since leaving school. Lessons on borrowing, well, they'd have been invaluable (well, not quite - worth about 43,793.00 I'd say)

Numpty_Monkey

Charco wrote: »

That's a good idea and will therefore probably never be brought forward.

However, something i thought i heard rumblings about again this week - and something we've been pushing for quite a while - is for these kinds of things to be taught properly in schools.

http://www.moneysavingexpert.com/news/protect/2009/11/personal-finance-education-to-be-made-compulsory

:j:j:j:j:j:j

talana

captainhaggis wrote: »

I think the government should be allowed to cap the APRs these companies can charge. Let them come in higher than the high street lenders but APRs in to the thousands is immoral and should be illegal.

These are sub-prime loans and only meant to be strictly short-term. APR is not the whole story on this type of loan and is arguably not the best indicator.

Another example - you borrow £20 from a mate, then a week later pay him back and buy him a pint (£2.50 say) to say thanks. Reasonable scenario?
Borrow £20, pay back £22.50. Nothing wrong with that you say.
Yet what would be the APR on that? Anyone?

fermi

A 'mate' isn't likely to harass you with phone calls, send threatening letters, make dubious legal threats or take you to court if you can't buy his 'pint' on time. :rolleyes:

pepe2008

So what would it work out if your Bank start to charge you £1 a day for any overdraft, say £100.......I make that worse than Quickquid1 they're all at it..its just how its dressed up.

Be very very careful when borrowing ANY money.

GeorgeUK

Right, i'll give it a bash.

2.50 interest for 1 week borrowing 20.00

2.5/20 = 0.125
52 weeks in the year so 1.125^52 = 457.0157
Convert that back to a percentage
So that's an APR of 45,701.57%


Am i in the right ballpark?

Edit:
Just noticed an error in this.
I added 1 to get 1.125 but didn't subtract it again.
So that should have been 457.0157 - 1 = 456.0157
Making 45,601.57% APR

Phew not as bad as we thought then