People who take out payday loans....

andrewf75

aileth wrote: »

Me and hubby were having a discussion about this, this morning and about why people would take one out. I'd genuinely like to hear from people who have taken them out and the reasons why. Is it desperation, as in their outgoings are more than their incomings and they use them to bridge the gap, or is it impatience, i.e. they've spotted an item in a shop that they want desperately but don't want to wait a week before payday to buy it? I'd be genuinely really interested.

Considering what this site is, I doubt that anyone here has taken one out! The sort of person who takes one out is the complete opposite to the sort of person who posts here.

I used to share a house with 2 people who took them and one went on to become an agent for the company so I have quite a bit of insight into it. They basically exploit people who are not financially aware. I'm sure there are people who make a rational decision to take a loan, but I believe its a very small minority. Most are completely unaware of the interest rates and one thing my friend said was that in the minds of customers they look at the payback as how much per week, not the total amount i.e £100 loan. Thats ok, its only £15 a week to pay back. The fact that its over 10 weeks means nothing to them.

pops5588

Actually, andrewf75, I took some out on and off a few years ago. I knew exactly what they were about, I knew the risks and I knew about the interest rates. I'm not an idiot or a bad person. I was just a young, desperate graduate who managed to get a job, but could only get a 12-hour a week contract. I struggled to pay my rent, my travel costs, bills etc. and every 3 months when the clothes shop i worked at got a new season range in, we were bullied into buying new uniform which I could not afford. So yes, every few months I ended up resorting to a payday loan to make ends meet.

It makes me incredibly sad to see people being so judgemental about people like me. It wasn't a choice that I wanted to make, but it was that or get sacked by my Regional Manager. And then I am jobless and have to sign on and then get put in the category of "benefit scroungers" who also get abuse. So you tell me, what was I meant to do?

And for the record, I worked my @rse off to get out, to earn more, to find extra work. And I managed it, and haven't touched a payday loan since. Oh and now own a house. But I've already been judged right? Stupid me.

Own_My_Own

andrewf75 wrote: »

Considering what this site is, I doubt that anyone here has taken one out! The sort of person who takes one out is the complete opposite to the sort of person who posts here.
.

Have you actually ever looked at this site. I mean really looked !

I would suggest you start on the Debt-Free Boards.

Rotor

bobobins wrote: »

So basically, you're an idiot if you take a deliberate action that involves some kind of risk?

What risk. It's a bolt on solid gold certainty that you will pay back much more than you borrowed. PLAN AHEAD, save a buffer, whatever your income. You CAN afford it otherwise you couldn't afford to pay back the loan

Own_My_Own

Rotor wrote: »

What risk. It's a bolt on solid gold certainty that you will pay back much more than you borrowed. PLAN AHEAD, save a buffer, whatever your income. You CAN afford it otherwise you couldn't afford to pay back the loan

The reason people get into difficulty is because THEY CAN'T AFFORD TO PAY BACK THE LOAN !

lazer

Here is a thread for someone whp was considering taking one

https://forums.moneysavingexpert.com/discussion/comment/63624885#Comment_63624885

bobobins

Rotor wrote: »

What risk. It's a bolt on solid gold certainty that you will pay back much more than you borrowed. PLAN AHEAD, save a buffer, whatever your income. You CAN afford it otherwise you couldn't afford to pay back the loan

I just did a quick calculation on Wonga to see how much it would cost to borrow 300 pounds for 2 week. turns out it's £48.27. I was unaware this was a lifechanging amount of money.

sistafromanothermista

bobobins wrote: »

I just did a quick calculation on Wonga to see how much it would cost to borrow 300 pounds for 2 week. turns out it's £48.27. I was unaware this was a lifechanging amount of money.

:eek: If the theories about these companies are correct they have now gained your bank details, full address, age, underwear size and the name of your dog.


Be afraid.....

imoneyop

bobobins wrote: »

I just did a quick calculation on Wonga to see how much it would cost to borrow 300 pounds for 2 week. turns out it's £48.27. I was unaware this was a lifechanging amount of money.

It probably is for someone who is in such a dire financial position that they need to borrow £300.

kwmlondon

roh999 wrote: »

then moan about the interest afterwards...nothing but idiots!

There is now an automatic gap between claiming jobseeker's allowance and being paid. This means that if you're made redundant and don't have enough in savings to keep you going until JSA kicks in (and if you are supporting a family on a low wage savings are a luxury you may not be able to afford) you HAVE to take out a payday loan. You don't have the opportunity to scrutinise the interest rate, it's either food for your kids or not.

Even then, okay, I'll take your point that you should be aware of the interest rate.

Borrowing £100 and paying back £110 a couple of weeks later, that's understandable. What's utterly immoral is when payday loan companies call to ask if you want to roll the loan over, then the £110 becomes £120 or £150 and so forth - nobody told you the numbers, it's just a phone call and you forget about it.

People may start off being responsible and understanding what they are getting into but it's in the interests of Wonga etc. to make sure that they soon lose track of what they owe and end up being hit with a really nasty bill.