MSE News: Loan sharks leave victims in debt all year

Former_MSE_Guy

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 ..."

Read the full story:
Loan sharks leave victims in debt all year

nomoneytoday

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

"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

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

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

Ah. It's my dubious maths then.

fatbelly

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?