Mini Credit loan

lovelygirl888

Just wondering has anyone here delt with mini credit?
Got a loan for £100 was laid off work thats how I got into debt all my fault!! but anyway just want to know how can it go from £100 loan to £850 ??? how does their interest work out?

Eonel

lovelygirl888 wrote: »

how can it go from £100 loan to £850 ???

4144% interest rate, that's how.

dealer_wins

Its the power of 4000% interest, combined with about 30 different charges for being late.

Apples2

Not repaying it didn't help either.
It wasn't free money.

Everyone who takes them loses their job or other such unforeseen waffle. They Really are used to it.

lovelygirl888

Apples2 wrote: »

Not repaying it didn't help either.
It wasn't free money.

Everyone who takes them loses their job or other such unforeseen waffle. They Really are used to it.

Hello yes I take full responsibility for my debt I was never in debt before never even had a credit card till I was 30 years old last year and got into bad debt its my fault I know. And understand why they dont care if I lost my job just wanted to know why the interest rate is so high.

StuC75

lovelygirl888 wrote: »

Hello yes I take full responsibility for my debt I was never in debt before never even had a credit card till I was 30 years old last year and got into bad debt its my fault I know. And understand why they dont care if I lost my job just wanted to know why the interest rate is so high.

Because it was intended to be a short term loan. which then expressed as annual figure (by running for that long) makes it look so bad..

Think of it this way, a mate lends you £20 just before payday.. At the end of the week your in the pub and give him the £20 plus buy a drink as thanks (quite reasonable).. That £3 for the pint is 15% of what was borrowed - but if you roll that each week / month to annual equivalebt then it goes to the 1,000's of percent..

DCFC79

lovelygirl888 wrote: »

Hello yes I take full responsibility for my debt I was never in debt before never even had a credit card till I was 30 years old last year and got into bad debt its my fault I know. And understand why they dont care if I lost my job just wanted to know why the interest rate is so high.

You did look before you got the loan what the percentage rate was ?

Eonel

lovelygirl888 wrote: »

just wanted to know why the interest rate is so high.

In part, the interest rate is so high because they lend to people with poor credit records and/or a high likelihood of not paying it back. To be fair, by not paying it back on-time you may be an example that justifies their case.

People with better credit worthiness would borrow from mainstream lenders where interest rates are much lower.

DCFC79

Eonel wrote: »

In part, the interest rate is so high because they lend to people with poor credit records and/or a high likelihood of not paying it back. To be fair, by not paying it back on-time you may be an example that justifies their case.

And the convenience of having the money in your account within say a few hours.

Apples2

If it were a sensible low rate which was paid back on time, they would make about 6 pence profit. It wouldn't be worth offering.

Charge high for short periods, all goes wrong when customer ignores the short period bit and decides to make it a 3 year loan.

ihateyes

Apples2 wrote: »

Not repaying it didn't help either.
It wasn't free money.

Everyone who takes them loses their job or other such unforeseen waffle. They Really are used to it.

helpful advice again.