PDL companies what's been your experience ?

OneLife_OneShot

As posted on here helping others I got into a bit of a mess with Wonga, which was my fault and I took all the blame, I found them to be helpful enough and I got through it all in the end.

I just hope eventually PDL's are regulated for employed people only.

My friend normally uses them once a month if he's short until he gets paid but always pays them back the day he gets his wages in. He is one example of them seen be used properly, unfortunately that isn't always the case.

Pennywise2012

conisme wrote: »

My friend normally uses them once a month if he's short until he gets paid but always pays them back the day he gets his wages in. He is one example of them seen be used properly, unfortunately that isn't always the case.

If he only gets paid once a month, and he's using them once a month, then that sounds like the start of the PDL spiral.

You borrow £100 for 30 days, pay back £136.72. But you can't afford to be without the £136.72, so then you borrow £136 to cover it. Now it's £173 to pay back. You do the same again, borrowing the £173. Payback is £231.32.

That's only 3 loans, the original, and two 'robbing Peter to pay Paul' ones, very easily done, but the £36.72 it was originally costing you has become £131.32.

I can't help but wonder if that's why Wonga (where I got these figures from - that slider is easy lol) offer £400 to new customers, but £1000 to existing 'trusted' customers. It's the same £400!

I appreciate that no-one is forced to take a PDL, and the lenders are upfront with the fees, etc etc, but I do think it's wrong the way, if someone is in the spiral, they're treated as an excellent, 'trusted' customer, rather than someone who needs help.

Surely 'used properly' is if you can afford to make the payment out of your disposable, spare, wouldn't-matter-if-you-threw-it-down-the-drain money come payday?

Gordon_Hose

Pennywise2012 wrote: »

If he only gets paid once a month, and he's using them once a month, then that sounds like the start of the PDL spiral.

You borrow £100 for 30 days, pay back £136.72. But you can't afford to be without the £136.72, so then you borrow £136 to cover it. Now it's £173 to pay back. You do the same again, borrowing the £173. Payback is £231.32.

That's only 3 loans, the original, and two 'robbing Peter to pay Paul' ones, very easily done, but the £36.72 it was originally costing you has become £131.32.

I can't help but wonder if that's why Wonga (where I got these figures from - that slider is easy lol) offer £400 to new customers, but £1000 to existing 'trusted' customers. It's the same £400!

I appreciate that no-one is forced to take a PDL, and the lenders are upfront with the fees, etc etc, but I do think it's wrong the way, if someone is in the spiral, they're treated as an excellent, 'trusted' customer, rather than someone who needs help.

Surely 'used properly' is if you can afford to make the payment out of your disposable, spare, wouldn't-matter-if-you-threw-it-down-the-drain money come payday?

That's the point where people need to bite the bullet and be without the £136. That's what I had to do, and it got me off the PDL spiral.

If they can't be without that £136 on payday, they shouldn't have taken the loan.