Ultimate Challenge. 457 days / £16600!!!

his_missus

HI all!

Re: the mortgage/new house thing, we've decided we're going to save for the next 18months and see what position we're in then. The house we're looking at won't be built for at least another 18months or so. Whilst part of me wants to move, the other part knows if we stay put, we can have the current mortgage paid off in 10 years at 50. If we move we're potentially saddling ourselves with mortgage repayments until we're 65 (though I'm sure we could reduce that to 60)

As we could potentially end up with Hubby's two younger sisters (as his parents won't have the energy to look after them forever) I like the idea of mortgage-free at 50 as one of us may need to cut back the hours we work or even become a full time carer.

Then again, the house we're looking at has 3 large bedrooms and would suit them living with us...

Listening out KAT for your cheers

NinjaSavingKat

Another guy in the Daily Snail who killed himself for a £1600 Payday Loan debt. I wonder if there is a way of starting a campaign to close these places down. I haven't seen one so I think they might hold the stance that there is no cap on interest charges. Wonder if anyone has challenged the policy surrounding these companies in court... and where do we sgn up...
So sad...

Chatting money with colleagues - all men. One spend £36 on the company Lotto per month, then another £1 on some other company Lotto. Then another £8 a week on National Lottery and ScratchCards etc... about £830 a year. He won £400 through work once.. am trying to nag him into packing the work ones in if he is adamant on spending on the National Lottery... doesn't balance out well. Although he is not spending money he doesn't have it amazes me sometimes where a persons expenditure lies...

On another note this day is dragggggggggginnnnnnnnnnnnnnnngggggggggg!

I am going to check out my local food bank distribution centre who are looking for volunteers. I am curious as to how they figure out if someone is ACTUALLY in need or taking the micheal....

Anyway ramblings completed. I just want out of here to get to the Halifax...

his_missus

Kat, I definitely think there's needs to some limit to how much credit people can be given. He clearly couldn't afford to take out a second payday loan but he was accepted. Whilst I think we should take responsibilty for our spending/debt I also believe lenders should allow us to only borrow what we can afford rather than trying to make as much interest and profit out of people. It's so sad and shocking how easily peoples' debts can spiral out of control and lead to tragic events.

Siouxsie32

I've not read the article, but in the defense of Payday loans, they provide a service. I personally have used payday loans in the past which have allowed me to borrow from Peter to pay Paul when my back was against the wall. It was cheaper than unauthorised overdraft fees and kept me from getting late payment fees on my credit file. However, I knew EXACTLY what I was getting myself into and it was very clear how much the borrowing would cost and when it was due to be paid back. I didn't consider it to be an option to defer payment, which is where I think the real hefty charges kick in and people start to spiral out of control.

The criteria for these loans appears to be that if you have £1 in your bank account, you pretty much decide how much you want to borrow. I know this because my friend tried to borrow when she went over her overdraft limit and she found out that they make a £1 debit using your bank card details when you apply. She was turned down because she didn't have £1 and she argued with them that if you're taking a Payday loan, you don't have any money so that's a daft way to operate :eek:

I don't know what the answer is. Maybe the option to defer should be removed so that there's only so much debt a person can build up? If a person doesn't pay back on time, a sensible repayment plan should be set up at a sensible interest rate. There should be a cap on the amount that is paid back, but at the same time, borrowers need to accept a bit of responsibility as well. If they were told you can borrow £400, but if you don't pay it back on time you may have to pay back £1600, would people still agree? I fear that the people that need these loan most probably would. Banks appear to be responding a little as well. I have noticed that my banks have put a cap on the amount you can be charged if you use an unauthorised overdraft. That's good news for some. I know that unauthorised overdraft charges can be hundreds each month (I know from experience!) so it's good to see the banks taking a sensible approach.

Maybe now I should go and actually read the article....

NinjaSavingKat

Siouxsie you are completely right. If people have NO other choice as some don't then these are the best option. But again you are sensible and knew it was a short term loan that needed to be paid back asap. I just think this guy in particular didn't think it through as I got the impression his partner wasn't helping him much.

But where will it end. Perhaps if the lender actually sat a person down so they understood the implications of a 1400% interest charge they might think twice about the amount they borrow - but what if they have no choice and are so scared they leave, see no other way through and take their own life.

It's a horrible situation, one that some depend on but I think the constant harassment that people are put through doesn't help and these payday loans should refer people directly to an agency to help them with debt..

I am just determined to do something about his, help people that see no other way out and promote the life of a penny-pincher.. I am just not sure where to start...Hmmm thinking to be done. First stop - food bank today and see what they need from a volunteer...

(Cheapo healthy cooking demonstrations for people picking up food boxes maybe...? I have someone who would do that with me )..

Sorry I shoulda posted the link to make life easier for you all...http://www.dailymail.co.uk/news/article-2324769/Father-financial-worries-owed-payday-loan-firms-1-600-set-bombarded-phone-calls-text-messages.html

Siouxsie32

Ok, I read the article and it's tragic. I have no idea what it must feel like to have a family that rely on you to provide for them. It seemed that this poor man didn't share his burden with his partner either so he carried the weight of the world on his shoulders and she had no idea.

It seems to be the harassment that is what tips people over the edge. Maybe that's where the regulators should get tough. I notice that the OFT have closed down some of these lenders and I have no idea what the bad business practice is that they're accused of. Perhaps the excessive texting and calling?

Great idea about trying to help kat. I would love to help as well. I am having a short holiday with my family in the summer and I printed Martin's money quiz off to make the teenagers do (oh yes, life's full of fun in my house ). I am determined to make them understand about budgeting, debt, planning, household bills etc.

NinjaSavingKat

Siouxsie a brilliant idea! They need to know before being let out of home to fend for themselves otherwise the easy CC money that's available will trip then up! I'm hopefully heading home in August to NI for my Dads birthday! You staying here or heading over there?

Siouxsie32

Neither, we're off to Scotland for a week Guaranteed rain means more quizzes

NinjaSavingKat

Ha ha!!! Bring snakes and ladders and fine them every time they go down a snake but only give them 50% back for going up a ladder!!.. Lol!!!!

On a completely separate note- back in the days when I first got a mobile I took it on as a luxury! As much as I desperately need my banking apps etc I need to look into reducing my £48 bill. This is standard for me with no extra pennies on calls etc AND with a "friends and family" 30% discount cause I sweet talked the O2 guy. Laughs on me- stuck in the contract until Feb 2014 so will be cancelling the £12.50 insurance if I can with O2 and signing with 'Protect Your Bubble' @ £5.99 a month! Silly NSK shoulda done this sooner but I am defo one that requires insurance.. :-(

NinjaSavingKat

Stupid Halifax. Only give you £50 a day without your card. Grrrr! Depositing into another bank as we speak!!