Glad he asked me first.....

anxious_mum

My son arrived this morning to ask me what my opinion on Money Shop is. A year ago, before I joined this site, I would have been pretty clueless, as I have never had any dealings with this kind of thing. However, as I am a long term lurker now I feel I am well up to date with how far away you should stay from them!

The story is, his 'friend' has asked him to take out £100 from the Money Shop, and he will.....you guessed it, pay it back when it's due! He came up with the usual sob story, it's christmas, he doesn't get paid until after, blah, blah blah.....

Well, because of the brilliant folk on this forum I was ready for every question he put to me! Should he do it? NO. Would I do it for a friend who was desperate? NO.

We ended up having a discussion about finance in general, and these kind of businesses in particular, and he was impressed when I was able to tell him the APR on £100 over 30 days would be around 260%....and when I explained what would happen when his 'friend' told him he had paid it on time and in full (but hadn't) how they would raid my son's bank account and take everything - legally - that was owed. And that it would be a lot more than £100 :eek:

After I'd also pointed out that my son's credit rating could be affected just by applying (he doesn't even have a credit card yet, he is 19 years old) the penny dropped and he realised that the reason his 'friend' couldn't apply under his own name is because his credit rating is already shot to sh*t and that he is being used.

The outcome of the story? He has promised he won't touch these lenders with a bargepole, and he is going to tell his 'friend' to man up and tell his mum the truth, that he can't afford to buy her a pressie this christmas due to his lack of being able to budget his finances. As I said, I'm sure she would prefer nothing than something paid for in this way.

And I ended up with a hug and a kiss for telling him like it is.......this hug and kiss I am passing on to you for educating me in the realities of going down this road.

Here's to a happy Money Shop free christmas. Thanks, and mwah :T

Heffi1

Well done on having a lovely trusting relationship with your son, you will have saved him so many headaches and educated him at the same time, you should congratulate yourself on steering him away, but also taking the time to explain why these places are not a good idea.

DCFC79

Well done OP, nipped it in the bud at an early stage.

anxious_mum

Thanks Heffi1, he's got a way to go yet as far as money matters are concerned, but I'm so glad he felt happy to ask me my opinion, and then to promise to act on it.

He struggles to budget sometimes, and I get fed up with him asking me to lend him money (which doesn't always get paid back) but I hope to goodness I've hammered this lesson home hard - Just don't do it!

But, it's only from being on here that I looked like I knew what I was talking about, and was able to tell him the facts with absolute conviction.

Heffi1

At least he is asking questions, a lot of kids don't, my son who is 27 recently said he would not get a credit card as he could not trust himself to not spend it all, but would then struggle to pay it back, so he has chosen not to get one.

Young people do need to be told about the dangers of instant gratification and getting what they want when they want it, with no thoughts on how to repay the bills.

I am glad your son is being sensible, even though he probably wants all of the nice shiny things, he knows to use credit wisely I hope.

PlutoinCapricorn

What a wonderful story: for every one like this, there must be 100s where people learn the facts the hard way, after the event. There is no rule that you must learn this way, but many people seem to.

He deserves to be told again and again how clever he was to ask your opinion first (reward the positive!) and to listen to what you told him, and you deserve credit too for being the sort of person he came to.

And MSE deserves the credit for existing and being a pool of information.

anxious_mum

Thanks, PlutoinCapricorn.

I think this kind of thing should be taught in schools, say in Maths lessons for example. Lesson 1. If you borrow £100 from The Money Shop, and you pay it back in the agreed time, you will pay xxxx amount, therefore, it will cost etc......Something should be done to educate our kids about how to handle their finances, and how to work out APRs, and they should be told in advance about credit cards, and bank accounts, and bankruptcy, and loans, and mortgages etc.

I never had any education about any of this, and neither did my two boys. So, how do they learn? From experience (usually bad ones) or from asking their parents?

And what if their parents don't know the answers? Or don't care? I wouldn't have known how to answer his questions a couple of years ago.

_Andy_

Awesome kudos to you OP

liltdiddylilt

You must be very proud of your son. I would be. It takes a very close relationship for him to be able to come and ask you something like this, and also for him to take your advice!!

Well done you!!

OneLife_OneShot

TMS is good for getting Euro's and that is about it, went in the other day to exchange some and they started off on PDLs "we can sign you up and if you need money blah blah", was having none of it, glad your son has the sense to realise what he could of got himself into.

UsetheFORCE

TMS is crap where I live for currency, we are quite spoilt with 3 bureaus, about 6 travel/bureaus and 10 banks offering currency within 100 metres of each other, get a great rate.

Glad he hasn't gone done that road, I would be interested to know what percentage of people who took out a PDL, took out another with a different provider around the same time! It's a slippery slope...