borrowing money from door to door collectors

Cumbrian_Male

If she needs the money for school uniforms in the autumn term then she should save for them. If she feels she can't help herself from spending it then as suggested get her to join a credit union. She wil need to save for 12 weeks then can borrow twice what she has saved at 1% simple rate.

Warriorsith wrote:

.......shes probably thinking of going with Provident..... They'll charge her an excessive repayments so if she borrows £100, she'll have to pay back say £165, which doesn't seem much but as a percentage the APR is silly. Also she repay it at a £5 a week which would take over 8 months to repay it.

If she does go to Provident then the costs are as follows all for £100 borrowed;

£6.40 x 23 weeks = £147.20 497.4 APR
£5.00 x 31 weeks = £155.00 365.1 APR
£3.00 x 55 weeks = £165.00 177.0 APR

People use home collected credit for a variety of reasons some have little other choice. But many use it for the service and convenience.

Also all you ever hear about are the headline grabbing stories quoting APR'S never all the satisfied customers (94% satisfaction rating which is better than the banks) and flexibility when things go pear shaped. When did you last see anyone complain that they took 4 years to pay a loan term of 31 weeks and they were never charged an extra penny in charges!

I work for Provident and will try to answer sensible genuine questions, however flaming or rants will be ignored, or reported. I don't want to argue morality issues as everyone makes their own choices in life.

homersimpson_3

I work for Provident and will try to answer sensible genuine questions, however flaming or rants will be ignored, or reported. I don't want to argue morality issues as everyone makes their own choices in life.

Just of out of curosity if say you borrowed £100 and took it over 23 weeks, week 1 paid £6.40, would Provident (or whatever co) allow you to pay off the balance next week (assuming you could afford to). How flexible is it? Or you tied in?

Careful_girl

I used to work for this dept as a student some years ago. The terms were then that only secondary school children get them as school uniforms can only be prefered by primary schools and not required. The grant was then £85 a year for people on income support and family credit (I know these benefits may have changed now!!). The money could only be used for clothing NOT shoes.
All the best
CG

lynzpower

If your freind is on benefits they could get a crisis or budgeting loan ( i forget which)

She should of course save, if she wants to come to the DFW board, Im sure we can find £100 from somewhere.

And yes, avoid doorstep lenders, the rates or APR are hairraising

clutton_2

Many thanks for all the ideas put forward - sorry, what is DFW board please ?

Warriorsith

clutton wrote:

Many thanks for all the ideas put forward - sorry, what is DFW board please ?

This is the Debt-Free Wannabe forum.

littlejaffa

word of warning no matter how nice they are, how well you know or trust them, make sure every penny you pay a door 2 door collector is marked in your book, and you keep the book - WITHOUT EXCEPTION.
if they don't have a pen, don't pay them till they come back with a pen and mark up your book with the payment, if they want to take your book away, offer to get them a photocopy (most newsagents/libraries will do this) or ask for their head office number to get alternatives, DO NOT let the book out your site. If you've already done it - stop paying till the book comes back and all payments are marked.
It is soooo common for people to not mark up payments and without the book you can't proove you made them, so if your collector leaves or pockets the money your stuffed.

i know there are honest collectors but better safe than sorry

Careful_girl

Clutton t'is the place to be!! :cool:
Full of very nice ...nerds according to :money: . Bring ya mate and let the saving...BEGIN (and the support)
:beer:
CG

MissSunshine

My friend is very bad at budgeting and has used a company in this way to borrow money, I had no idea until they came for weekly collection.

I can vouch that the company my friend used didn't get heavy when you can't pay (don't know which co), but if the small weekly repayments might not be affordable to your friend then she really shouldn't be considering this way because it'll start with borrowing money for school uniform, then she'll need money for something else, then something else and the circle will start.

If you believe her to be a good friend, then lend her the money, otherwise can she do a car boot or ebay to raise some money?

Robert_Sterling

"Blood Brothers" the musical has been running in the west end for 20 years.
It delas with the subject of this thread.