Payday loans - discuss the MSE guide

DCFC79

barrrrr wrote: »

I have reported those above for their insults and accusations, well-done for highlighting yourselves as the idiots I was referring to originally, who need to be productive when it comes to talking about people who take payday loans instead of taking cheap shots at those who need help.

Who have you reported ?

What insults/accusations did you not like ( cant see any myself) ?

imoneyop

barrrrr wrote: »

Most take it for a week or two

Do you have statistics or evidence to back up this statement? Because from what I have seen on this forum over the last few years the vast majority of payday loan applicants take out a loan and then have a downturn in their finances and end up rolling it over or defaulting.

barrrrr wrote: »

Wonga (whom I do not work for)

Any reason for you to need to state this? People who do similar usually turn out to be a company mole or spammer.

theblagger

http://www.guardian.co.uk/money/2013/jul/11/rise-payday-loan-borrowers-help-stepchange
It gets worse

matttye

theblagger wrote: »

http://www.guardian.co.uk/money/2013/jul/11/rise-payday-loan-borrowers-help-stepchange
It gets worse

£150 to £15,000?!?! That's abhorrent.

Useitorloseit_2

theblagger wrote: »

http://www.guardian.co.uk/money/2013/jul/11/rise-payday-loan-borrowers-help-stepchange
It gets worse

That is terrible

purple.sarah

It worries me to see pay day lenders reviewed on Moneysaving Expert TBH. Although there is plenty of qualification, saying they are the least worst and adding warnings, it could still be seen as legitimising these lenders and pay day loans in general. I was disappointed to see that there was no warning that taking out a pay day loan can jeopardise your chances of getting a mortgage in the future. Pay day lenders sell their products as a short term solution but it can have a long term affect on your life.

malcolmffc

purple.sarah wrote: »

. I was disappointed to see that there was no warning that taking out a pay day loan can jeopardise your chances of getting a mortgage in the future.

The article very clearly states this - clearly you have paid as much attention to it as payday borrowers do to the terms and conditions!

"8. Payday loans can hit your ability to get a mortgage - even if paid on time
Get a loan, mortgage, overdraft, credit card, contract mobile phone or even monthly car insurance, and lenders 'score' you to predict your likely behaviour. They use data from credit reference agencies..."

interestingstuff

MSE Guide should emphasise one very important fact: Early repayment may result in paying MUCH lower interest on the loan. I have used Quick Quid a few times before getting my expenses paid back from work, and so only needed the money for a few days. This usually meant that the term would be for the rest of the month until next payday (say 14 days), but I would get my expenses within a day or two. By paying back the loan immediately, within the first half of the term, I would typically pay only a few pounds interest instead of perhaps 30 or 40 pounds interest!

John1993_2

sunnsea wrote: »

I have used wonga on several occasions. I use it because its fast and the money really is there within 15 mins from applying and not in a few days like a lot of the other companies are.
I wouldn't use it if I had another means of borrowing but as I've been transferred with my job, my wages have gone down and I cannot afford to pay all my bills without additional help until I'm up to speed on my new job (should take about three to five months for wages to rise)

The above post is worrying. Rolling over payday loans virtually always suggests major trouble down the line. Do you have an actual budget calculated for what you'll owe in "three to five months", and for what you'll probably earn, and do you have a plan as to how you'll then pay back the much increased debts?

I do hope that you've done detailed calculations, and are not just thinking "I'll be earning plenty, it'll be fine..."

John1993_2

barrrrr wrote: »

3. For this to be a decent proper guide... and a decent, proper forum regarding it ... you have to stop going on at people for taking the loans out. If they've got the ability to find this page, they've got the ability and wherewithall to find non-payday lenders if they were able to borrow from them

So if people are naively heading down a rooute to ruin, everyone should do what, encourage them, say nothing?

Sorry, but I think the moral and ethical thing is to try to explain clearly where they are headed, and what their alternatives are, and I'm not going to stop doing it because someone else on the internet gets narked by it.