People who take out payday loans....

missprice

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.

Not for a couple of decades but yes once upon a time I had to take a couple of loans out.
With Norton finance in fact.
Best day of my life when I finally paid it/them off.
It started when I needed new bedding for a child and then just escalated.
Borrowed £50 in the first place, and one week when I simply could not afford the payment the add ons started. Don't recall them all now mind but it was extra interest and a fee for missing a payment, then they just say well if you just get another loan to cover the old loan and start it all again we will offset the fees etc.
Then you owe them £100. It carries on and on.
Once to move house I had to borrow £100 and because of the way the loan worked I only got £80 something. The first payment is taken out of the loan.
Really sad that I needed it but had to move and now 20 years later I am so glad I did move.

bobobins

sistafromanothermista wrote: »

: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.....

You don't have to put anything in and I wouldn't have done it otherwise.

PZH

pops5588 wrote: »

..Oh and now own a house.

First of all - well done you for getting sorted and moving on :T:beer::T

However, according to the BBC News article, a PayDay Loan may remove that option for many...

Meanwhile, mortgage commentator Ray Boulger from the advisers John Charcol told Newsnight that taking out a payday loan could adversely affect any future mortgage offer.

"Our experience is that mortgage lenders will often turn down requests for people who have had a payday loan - the regulator should require payday lenders to display this," he said.

kwmlondon

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.

Well, £50 isn't a life-changing amount for me. To be honest, I can spare the odd thousand pounds here and there without being in too much trouble but then I earn quite a lot. I do, however, understand, that for people on the minimum wage and raising a family an unexpected bill can be crippling.

What you need to understand is that people like you are not that profitable for lenders. People like me are a nightmare - I take out 0% cards and cashback cards and make sure I pay off what I need to when I need to and they make no money from me.

The ideal customer is someone who earns much less than me and is less organised and far less financially literate. They will not have as much choice as I do, they'll find it harder to make payments and be more likely to roll loans over or take on debt to pay debt because they don't have enough pay coming in or enough financial education to understand the consequences of what they are being offered.

There are idiots out there. I was an idiot once, I was a child once, I was young once but I had the good fortune to be educated and to learn from my mistakes before I really s***d up my life.

andrewf75

pops5588 wrote: »

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.

As I said I'm sure there are a minority of people taking them who know what they are doing - and it wasn't me who described people as idiots or bad people.

But the majority are naiive in my opinion and I think its wrong that these companies are allowed to exploit the naiive and vulnerable in society.

bobobins

kwmlondon wrote: »

Well, £50 isn't a life-changing amount for me. To be honest, I can spare the odd thousand pounds here and there without being in too much trouble but then I earn quite a lot. I do, however, understand, that for people on the minimum wage and raising a family an unexpected bill can be crippling.

What you need to understand is that people like you are not that profitable for lenders. People like me are a nightmare - I take out 0% cards and cashback cards and make sure I pay off what I need to when I need to and they make no money from me.

The ideal customer is someone who earns much less than me and is less organised and far less financially literate. They will not have as much choice as I do, they'll find it harder to make payments and be more likely to roll loans over or take on debt to pay debt because they don't have enough pay coming in or enough financial education to understand the consequences of what they are being offered.

There are idiots out there. I was an idiot once, I was a child once, I was young once but I had the good fortune to be educated and to learn from my mistakes before I really s***d up my life.

I know all this, it's part of the point I was trying to make in the first place. Payday loans are not that expensive if you pay them off in time, only when you don't.

I took offence to the fact the op seems to think people who take them out are "Nothing but idiots." A position which seems at best misguided and at worst bigoted.

I've never taken one out, never been inclined to and certainly never needed to, but my brother did a few times when he was at university. He's since qualified as a GP and has been in the NHS now for a few years. He is, however, an "idiot" according to the op.

andrewf75

The OP made a sweeping generalisation, but I think there is some truth in it. "Idiots" is harsh, but those who are tempted to to take out these loans are mostly naiive, disorganised and not financially literate.

kwmlondon

bobobins wrote: »

I know all this, it's part of the point I was trying to make in the first place. Payday loans are not that expensive if you pay them off in time, only when you don't.

I took offence to the fact the op seems to think people who take them out are "Nothing but idiots." A position which seems at best misguided and at worst bigoted.

I've never taken one out, never been inclined to and certainly never needed to, but my brother did a few times when he was at university. He's since qualified as a GP and has been in the NHS now for a few years. He is, however, an "idiot" according to the op.

Yeah, sure, it just reminds me of people who have a talent/skill/awareness that can't understand why other people don't. At school I was treated like an idiot because I couldn't play sports. It was utterly beyond the ability of my classmates or PE teacher to understand that I didn't have the ability to throw/catch/kick things like them.

It's not just that some people are dumb - because they are, undoubtedly - and others are ignorant, but we exist in a system where the people who make the rules want fewer people to understand them. Wonga etc. would much prefer it if NONE of us understood maths at all, and a significant number of politicians are on the boards of payday loan companies, let's not even get started on the amount of lobbying they pay for.

You and I are lucky. That's all. We're not special, or god's chosen few, we're just a handful of people who have had the opportunity in life to make decent financial decisions. We ought to do all we can to share this with others and I don't like it when people take the p**s out of those who make s**t financial decisions.

The weak need our help not our derision. I thin I'm saying I agree with you. Am I?

pops5588

andrewf75 wrote: »

As I said I'm sure there are a minority of people taking them who know what they are doing - and it wasn't me who described people as idiots or bad people.

But the majority are naiive in my opinion and I think its wrong that these companies are allowed to exploit the naiive and vulnerable in society.

Yes, I did read it. However it wasn't that bit of your post that jumped out at me. It was this: The sort of person who takes one out is the complete opposite to the sort of person who posts here.

With all due respect, it would amaze me if you know what "sort of person" everybody was on here. We all come from different backgrounds, we are all here for different reasons to discuss different things.

Of course it is wrong of these companies to exploit the naive and vulnerable. But it happens, and they need help and advice. Fortunately the majority of people on here are kind, patient and generous enough to take the time out of their lives to give them that. They certainly don't need people on here judging them.

andrewf75

pops5588 wrote: »

With all due respect, it would amaze me if you know what "sort of person" everybody was on here. We all come from different backgrounds, we are all here for different reasons to discuss different things.
.

Of course, but the one thing that we surely all share is an interest in saving money/financial matters. In my opinion (based on something substantial as described earlier) the people who borrow money from payday loan companies are mostly those who don't take an interest in finances and live day to day without thinking about tomorrow.

Again I'm sure there are exceptions as always...