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MSE News: Loan sharks leave victims in debt all year

This is the discussion thread for the following MSE News Story:

"It is estimated people on low incomes collectively borrowed £29 million from illegal lenders ahead of Christmas ..."

Comments

  • nomoneytoday
    nomoneytoday Posts: 4,866 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Would this the unplanned Christmas period that doesn't happen every December?

    If people put £40 a month aside it would give you nearly £500 for presents and excess food. If you can't afford £40 a month then why are you spending £hundreds "because it's christmas" ?
  • wizk1
    wizk1 Posts: 911 Forumite
    Part of the Furniture 500 Posts
    edited 15 January 2010 at 2:36PM
    "Loan sharks leave victims in debt all year".

    Well, from what I can see, the status of "victim" is nothing but self inflicted. Nobody forced these people to take out the loans to begin with. I would be a little more sympathetic if the "victims" were on the bones of their a*se, without heating or food. But Christmas???? Come on!!!!! Don't spend what you can't afford.
  • Reaper
    Reaper Posts: 7,316 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    There is some dubious maths in there:
    But once interest rates, which average 825% but can be up to 1,500%, are taken into account...
    The association says the average person borrowed nearly �300 over the festive season, but they will have to pay back more than �800, and are likely to still be in debt by Christmas this year.

    825% does not tally with £300 changing into £800 over a year?
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Reaper wrote: »
    There is some dubious maths in there:

    825% does not tally with £300 changing into £800 over a year?
    It looks about right if you pay off around £70 a month.
  • Reaper
    Reaper Posts: 7,316 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Ah. It's my dubious maths then.
  • fatbelly
    fatbelly Posts: 21,454 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Why is it that articles like this always put 'loan shark' in the headline, waffle about illegal unlicenced lenders (which is what I would call a loan shark), then discuss fully legal licenced lenders?
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