Considering pay day loan

Betty_Crumble

TakeMeDrunkImHome wrote: »

IF YOU PAY IT BACK THERE ARE NO PITFALLS.

YOU CAN BORROW 100 POUNDS AND PAY AS LITTLE AS 25 POUNDS ON TOP.

Don't be scared by the talk of thousands of percent in interest.

Payday loans are short term loans that do not last 12 months

Apr stated is yearly APR which confuses the great unwashed.

If you borrow 100 pounds for a couple of weeks you pay about 20% interest on average.

Perfect when you need cash.

The trouble with payday loans emanates from lenders who don't vet applicants properly and borrowers who decide to ignore the debt and end up damaging their credit rating, presuming they have something left to damage as payday loans applicants usually have a trashy credit rating.

All in all payday loans aren't the big bad monsters people make them out to be.

I had bad credit once and took out a payday loans as well as various credit cards, never paid any of them back and absolutely nothing happened as a result anyway.

The main issue is people getting scared reading their computer generated demands for money.:eek:

so much wrong with this i dont know where to start

Max_Maxwell

Having read the post by Time to Face the Music, which I'd like to doubly thank him/ her for, I'm at a loss as to your post here. You've gone from one extreme to the other over payday loans. You've already told us what you think about them and then ask us whether you should take one out.

I have nothing more to say.

LunaLady

Maybe a troll post?

FATBALLZ

In theory they are ok for certain circumstances, however the problems are if you default or roll them over, unfortunately the people who tend to use payday loans aren't very financially competent and fall into the traps that cause problems.

So in general if you are considering a pay day loan, you probably shouldn't take one out.

Treadmill

The problem with PDLs is that getting to the stage where you are considering a PDL means that you have exhausted all other options and you are past all the classic signs of problem debt such as cash advances on a credit card which are cheap in comparison. you are now and into a vicious spiral, whereby you are perpetually borrowing to pay back money you have already spent, unless your income rises or your outgoings decrease there is realistically no way you will ever get out, other than default and pay exorbitant charges that may exceed what you borrowed by 100 of %. This I believe is the intended endgame of the PDL sharks.

It's like getting hooked on crack given on tick but without the crack.