Highest Interest Poll

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Poll Title: Poll Started 10 Oct: If you were to borrow £100 over a week, above what level would you consider the interest to be extortionate?
A. 5% APR
B. 25% APR
C. 50% APR
D. 100% APR
E. 250% APR
F. 500% APR
G. 750% APR
H. 1250% APR
I. 2500% APR
Vote here or click reply to discuss this poll
A. 5% APR
B. 25% APR
C. 50% APR
D. 100% APR
E. 250% APR
F. 500% APR
G. 750% APR
H. 1250% APR
I. 2500% APR
Vote here or click reply to discuss this poll

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Replies
http://www.myprovident.co.uk/products/LoanCalculator.aspx
Choose cash loan
enter £500
choose 55 weeks
change to 23 weeks
Now thats what I call interest
I don't think people have read the question properly IMO, quite a lot of people seem to think that 10 pence interest on a £100 loan is extortionate!!!
John
I didn't even think to work out what the interest would be (slaps wrist) but though anything above 25% was extortionate (sp). Now after reading Al Macs post I would agree with him! :rolleyes:
Borrow £1000 for £99 a month for 18 months. Total payments £1782. APR 123%
APR advertised as 1355% based on a 30 day loan
Check it out!
http://www.247spares.co.uk/paydayloans/
People are not considering that this is an ANNUAL percentage rate which takes effect over one WEEK.
Therefore I would personally consider such a short term loan to be extortionate once it went over £120 in repayment. My calculation therefore suggests £1040 over a year (20% x 52) and therefore 1040% APR.
Am I correct or equally missing the point?
The highest APR is 2500%. This equates to £2500 interest per year. So 2500 / 52 is around £48 for a weeks interest. I'd call that extortionate myself. I'll stick with 750% as my answer (nearly £15 interest for the week.)
John
Quite right - so sssh (and you may want to take a look at the results of a similar but different poll a couple of weeks ago - and see where I'm going with this) but don't look until AFTER you've voted!
Martin
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.