MSE News: 'Four million tempted' by payday loans, survey says

Former_MSE_Helen

"Some 8% of people surveyed by R3 said the cost of the festive season is driving them towards considering a payday loan..."

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'Four million tempted' by payday loans, survey says

gadgetmind

Isn't the clue in the name? Aren't these loans supposed to be paid off in full come pay day?

jobdone1

Surely if you cant afford things then you don't take out a loan with MASSIVE interest their must be other ways you can enjoy Christmas it is only 24 hours after all. Remember this has to be paid back on your next pay packet.

dealer_wins

Ah, so we have nailed sown how many financially stupid adults we have in the UK then at last.

Useful survey for once

poppasmurf_bewdley

dealer_wins wrote: »

Ah, so we have nailed sown how many financially stupid adults we have in the UK then at last.

Useful survey for once

I don't really think that is right.

For every one client of Payday Loan Company we hear about, there are probably about a hundred who pay back their loans in full on time and are quite happy about the deal.

I can speak from experience of when I was in the financial mire and was being floored with horrendous bank charges, bounced cheques and late payment fees. If payday loans had been around then, they may well have helped me, but I had to make do with what was then available.

Payday loans are ok if they are treated with respect, but those we often read of on here take out a loan knowing full well they will be unable to meet the repayment when it falls due. Doing this is asking for trouble but it seems to be developing into a national sport for some people from what I can see on these forums.

We can't take away something that is useful for 99% of people just for the sake of the 1% of idiots.

Moneymash

I predict there will be a lot of post Christmas posts about payday loans and people not realising what they have signed up to. For those that will get paid earlier than normal due to Christmas, the long gap between December and January pay will probably see some sucumb to the lure of a payday loan. Other's will take one to 'get through Christmas'.

It used to be that some poeple were still paying off Christmas 3 to 4 months into the year, with a payday loan this could result in the entire year.

Maybe MSE should have a sub forum for payday loans.

DCFC79

jobdone1 wrote: »

Surely if you cant afford things then you don't take out a loan with MASSIVE interest their must be other ways you can enjoy Christmas it is only 24 hours after all. Remember this has to be paid back on your next pay packet.

I bet there are people who do stretch the whole "must be paid back by payday" and then cry wolf when the lender raids said account.

Then there are people who take 1 out and have every intention of paying but they lose their job and then get into difficulty paying the loan back.

Then theres people who end up rolling over the loan due to apparent unforseen circumstances cropping up and just end up getting further and further into the spiral of debt.

Cutting expenditure is a way out.

dresdendave

DCFC79 wrote: »

Cutting expenditure is a way out.

Are you seriously saying when money is tight people should reduce their spending?

Why not be really radical and suggest they should learn to budget and live within their means.