Credit used for rent of mortgage

Kennyboy66

In 2009 1.2 million people used payday loans, that was a 4 fold increase since 2006 and it likely to have increased a fair bit since then judged by the general proliferation of cash converters / log book loans / pay day advance shops.

My guess is that the majority of people are using these loans for essentials such as rent / electricity / car repairs etc.

Lets be honest, there are going to be few on this board who have had to use a lone shark or the likes of provident financial to tide themselves over for a few days.

Lets just pretend it doesn't exist ?

shortchanged_2

Kennyboy66 wrote: »

My guess is that the majority of people are using these loans for essentials such as rent / electricity / car repairs etc.

Lets be honest, there are going to be few on this board who have had to use a lone shark or the likes of provident financial to tide themselves over for a few days.

Lets just pretend it doesn't exist ?

It's the ususal suspects who bury their heads in the sand.

Kennyboy66

wotsthat wrote: »

Still finding it believable Dev?

A million people have taken out a payday loan in the last year to pay their rent or mortgage in the last 12 months. After all it's really sound stats - 80 people in a survey said they'd done such a thing so it's reasonable to assume that 1,000,000 people in the UK as a whole have taken a payday loan to pay the rent/ mortgage in the last year. Right?

If the sample is representative (probably isn't) then yes - thats the beauty about statistics and sampling.

The Yougov exit polls at the 2010 were absolutely spot in - but they didn't even poll in 80% of constituencies.

System

The sample size is fine, it's the fact that it's only filled in by people that have the inclination to earn pennies for filling in a survey that I personally take issue with.

wotsthat

Kennyboy66 wrote: »

My guess is that the majority of people are using these loans for essentials such as rent / electricity / car repairs etc.

Lets be honest, there are going to be few on this board who have had to use a lone shark or the likes of provident financial to tide themselves over for a few days.

Lets just pretend it doesn't exist ?

I'm not sure where to find the figures to dispute your guess. I find it hard to believe though that there are significant numbers who really are using pay day loans to fund essentials.

Say I'm funding my mortgage with a payday loan and then rolling that over a month later and taking a new loan for the next payment . Obviously I'm already in the s**t but you'd find that fairly shortly it would become unsustainable to the point even the payday loan companies wouldn't touch me.

My guess would that the majority of payday loans are taken by the financially illiterate to fund wants rather than needs.

That said it's not a case of pretending it doesn't exist but looking at the numbers and, at the very least, determining that whilst there may be a problem it certainly isn't of the scale suggested by Shelter.

Graham_Devon

Joeskeppi wrote: »

The sample size is fine, it's the fact that it's only filled in by people that have the inclination to earn pennies for filling in a survey that I personally take issue with.

This is how most surveys work. I don't believe this is anything to do with paying for the surveys.

People would be even less inclined to fill these things out accuratelt if they didn't have an incentive....so what would be your suggestion?!

Let's face it. It's all an objection to the data the survey has provided that some don't wish to take on board.

Graham_Devon

wotsthat wrote: »

I'm not sure where to find the figures to dispute your guess. I find it hard to believe though that there are significant numbers who really are using pay day loans to fund essentials.

Again.

It's pay day loans and other forms of loans including overdrafts.

The amount stated to use pay day loans is 2%.

System

Graham_Devon wrote: »

This is how most surveys work. I don't believe this is anything to do with paying for the surveys.

So you don't think that there's any possibilty that the general demographic of people paid 50p to fill in a survey would be skewed towards people who struggle financially?

wotsthat

Graham_Devon wrote: »

Again.

It's pay day loans and other forms of loans including overdrafts.

The amount stated to use pay day loans is 2%.

Again.

2% of the survey is 80 people. 80 people in an online survey have used a pay day loan in the last year to pay rent or mortgage.

I'm going to take those 80 people (2%) and assume that they are representative of the general population. That extrapolates to 1,000,000 people in the UK having used pay day loans to pay rent/ mortgages in the last year.

That's statistical boll*cks. You know it and so do I. That doesn't matter though the 'fact' is out there "1,000,000 use pay day loans to pay rent or mortgages".

shortchanged_2

wotsthat wrote: »

Again.

2% of the survey is 80 people. 80 people in an online survey have used a pay day loan in the last year to pay rent or mortgage.

I'm going to take those 80 people (2%) and assume that they are representative of the general population. That extrapolates to 1,000,000 people in the UK having used pay day loans to pay rent/ mortgages in the last year.

That's statistical boll*cks. You know it and so do I. That doesn't matter though the 'fact' is out there "1,000,000 use pay day loans to pay rent or mortgages".

Wow. Has every British citizen young and old got a mortgage or pays rent?