Martin Lewis Loans

somethingcorporate

He probably does give loans (indirectly) if it's sat in a bank/invested/p2p.

It's not sat in gold bullion in his front room (or maybe it is).

ferry

NobodysChild wrote: »

Has he really got £80 mil?!

Or is that a joke?

Of course thats a joke,silly.

I thinks its more nearer £90 mill now.

JimmyTheWig

Many banks use loss-leaders to draw customers in.
E.g. they may offer a loan for an interest rate so low that the bank will lose money on it. The aim of the bank is that once they have the customer hooked they can sell it other products and make money in the long run.
This is particularly the case with credit card transfers (some of which can be used as pure loans).

MSE's ethos is to use such deals where appropriate but then "ditch and switch" - i.e. benefit from the low rate of the loan but don't get sucjed in to buying other products with the bank unless they are the best value.

So if Martin offered loans, he would either...
(a) Offer loans that beat all other competitors in the market but not then flog customers overpriced other products - i.e. he would lose money
(b) Offer loans that beat all other competitors in the market and try to then flog customers overpriced other products - products that wouldn't be recomended by MSE
or (c) Offer loans at a reasonable rate which can be beaten by competitors offers - so wouldn't be recomended by MSE

Why would he want to do any of the above?

avfc82

bsms1147 wrote: »

Loans cost money.

This website is about saving money.

How can loans cost money? It cost money for the person obtaining the loan but for the person providing the Loan how would it cost money? I'm confused.com

[Deleted User]

That's what bsms was saying - loans cost the customer money.

Mind you, lending to the typical MSE customer would also cost Martin all of his money, given the likely default rate. And of course, he wouldn't want to push too hard on the collections activity either, one would assume.

InsideInsurance

This is the same as saying why do web designers design websites for others and not run their own websites?

Martin makes his money through advertising and pushing other peoples products. He is reasonably good at it and has successfully created the appearance of respectability in it. Why would he dilute that by having to learn new skills about how to run a finance company?