Credit used for rent of mortgage

Kennyboy66

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.

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.

Oh course, its the !!!!less underclass borrowing money to buy 4 slabs of ale from ASDA and 200 ciggies from their mate who is going to Benidorm !

Financial illiteracy plays a part, but mostly it is people on the margins of work earning low wages with no savings - and no access to cheaper forms or credit.

wotsthat

Oh sweet baby Jesus - it get's worse.

2% of the respondents said they'd taken out a pay day loan. To get 'nearly' 1,000,000 the starting population would be around 50 million.

They've effectively extrapolated 4014 online respondents (earning 50p each) as being representative of the best part of every man woman and child in the UK. Don't you have to be an adult to get a payday loan?

wotsthat

shortchanged wrote: »

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

No. Nor have they access to payday loans.

Graham_Devon

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".

Well at least it tallies with the figures. According to the CCCS, 1.2m pay day loans are taken each year, with more looking likely for 2011.

So the 1 million does still stand up.

Remember, these are not provident (etc) loans. These are pay day loans, which will often require employment details etc.

wotsthat

Graham_Devon wrote: »

Well at least it tallies with the figures. According to the CCCS, 1.2m pay day loans are taken each year, with more looking likely for 2011.

So the 1 million does still stand up.

Remember, these are not provident (etc) loans. These are pay day loans, which will often require employment details etc.

It doesn't stand up at all.

To back up a stat which doesn't bear scrutiny you've found another stat which is of a similar order and have assumed they are related.

Let's say they are related for arguments sake. 1.2 million pay day loans issued each year and 1 million people take a pay day loan each year to pay their mortgage or rent.

Does that sound anywhere near correct? Are you honestly trying to suggest that pretty much 100% of pay day loans issued are used to pay rent or mortgages?

FTBFun

Re YouGov - I actually have a proper job and have responded in the past, but have lost interest in recent years as it takes bloody ages to get £50. Think I'm just going to dump all my points now in the "prize draw" and be done with it.

Graham_Devon

wotsthat wrote: »

Does that sound anywhere near correct? Are you honestly trying to suggest that pretty much 100% of pay day loans issued are used to pay rent or mortgages?

What do you suggest people are taking pay day loans for then, if they are not to get through that month with living costs?

System

wotsthat wrote: »

Does that sound anywhere near correct? Are you honestly trying to suggest that pretty much 100% of pay day loans issued are used to pay rent or mortgages?

I'd imagine a very large chunk is unexpected or irregular expenditure rather than predictable monthly outgoings.

RenovationMan

Graham_Devon wrote: »

Well at least it tallies with the figures. According to the CCCS, 1.2m pay day loans are taken each year, with more looking likely for 2011.

So the 1 million does still stand up.

Remember, these are not provident (etc) loans. These are pay day loans, which will often require employment details etc.

Eh? There are 1.2m (allegedly) pay day loans per year and so the 1m people alledged to be taking out pay day loans to cover their mortgages 'stands up'?

Are we to believe that each of these 1m people only took out a single payday loan once per year?

wotsthat

Graham_Devon wrote: »

What do you suggest people are taking pay day loans for then, if they are not to get through that month with living costs?

...and off we go on a Devon tangent.

Your question is a simple diversion from your poor analysis. I've not suggested that some people don't use pay day loans to cover living costs (but pretend I have if you like). I've not even suggested that some people don't use pay day loans to fund rent or mortgages from time to time.

I'm suggesting that taking 80 people saying they use pay day loans in a survey of 4014 people and concluding that a million people use pay day loans to pay rent or mortgages is a cretinous conclusion for all of the reasons I've given. If I used anything like the above analysis to reach a conclusion you didn't like you'd be all over it - and rightly so.

You clearly don't understand because you've googled 'how many pay day loans' and were delighted to find that 1.2 million pay day loans were issued. Well that sounds remarkably similar to the extrapolation of 80 people therefore they must be related. It doesn't bear scrutiny because you'd have to conclude that pretty much 100% of pay day loans were paying rent or mortgages. Hmm. Bad maths followed by more bad maths doesn't make good maths.