MSE News: Which? wants payday loans clampdown

serenity2012

ChopperST wrote: »

Here we go another Daily Mail style thread, payday loans are the antichrist!

Used appropriately they are a sensible way to borrow SHORT TERM however. People need to take more responsibility for their own actions and decide on affordability prior to committing.

We are led to believe that these loans are exclusively for people who have the wolf at their door. I wonder how many use them for an ipod or a holiday. I can name several friends who have, who earn good money but borrow instead of saving.

We need to wake up as a country and become more accountable as individuals rather than blaming everything and everyone other than ourselves!

I'm sorry but that is the most uniformed response I have ever read. Of course anyone needing a payday loan is desperate for money. If you can't afford to go a complete month without having to take out a loan then its pretty obvious your finances aren't good. Your friends earn good money but still need a payday loan? Then they need some advise re managing money. Your whole post is wrong. I would advise anyone not to take out a payday loan. The interest is exhorbitant and all it does is leave you even shorter of money the following payday when you have to pay it back.

ChopperST

serenity2012 wrote: »

If you can't afford to go a complete month without having to take out a loan then its pretty obvious your finances aren't good

Exactly

Your friends earn good money but still need a payday loan? Then they need some advise re managing money. Your whole post is wrong. I would advise anyone not to take out a payday loan.

Exactly

The interest is exhorbitant and all it does is leave you even shorter of money the following payday when you have to pay it back.

Exactly

I would like to see where my post is wrong? I have no interest in payday loans and god forbid I hope I never need one. The morality of them is a separate matter. With regards to my friends that have used them what business of mine is it if they use a payday lender? Do you monitor all your friend's finances and steer them on the righteous financial path?

However the people that are using them are adults and are able to make their own decisions, I highlight in my post that we need better financial education so we can make informed decisions. I wonder what the stats are to those who use a payday loan for its SHORT TERM purpose and cut back the following month to bring their finances back into some sort of order.

The charges on an unauthorised bank overdraft can be as high as £150 for a month with HSBC. £5 a day, is that not exhorbitant? ANY loan will leave you worse off, thats the nature of the business! You are negating your future wealth for a want rather than a need.

I feel you have completely misinterpreted my post. I'm not championing the companies by any means and the industry does need better regulation. We should use this as the wake up call we need to stop living to excess and failing to plan for the future or a rainy day.

ChopperST

Consumerist wrote: »

I thought payday loans are supposed to be short-term loans. Why would someone borrow for a month to pay for an ipod or holiday?

Because of the nature of the priorities in their life. Not everybody is as financially savy as the community on MSE. Not everybody borrowing on a payday loan is a victim.