jdwilliams costs more than payday loans?

abrockall

For every £100 I pay on my catalogue each month I get a £61 credit charge on my jdwilliams catalogue.

When I get a £100 payday loan I pay back £125.

How come everyone is complaining about payday loan APR's when catalogues charges are way higher than theirs?

rockm87

I think it's because it has become common knowledge that store cards and catalogues can be a total rip off riddled with stupid fees and charges, whereas payday loans are relatively new, so are getting most of the focus.

Just avoid both.

National_Debtline

Hi abrockall


The APR issue is skewed by the fact that payday loans are usually repayable within a very short space of time, meaning that an APR of 4,000% can translate into a very ordinary-sounding cash sum e.g. £36 in interest on a £100 loan paid back one month later.


Both forms of credit are very expensive - the high interest rates are partly a reflection of the risk the lender feels they are taking that the borrower will not default.


Dennis
@natdebtline

sourcrates

abrockall wrote: »

For every £100 I pay on my catalogue each month I get a £61 credit charge on my jdwilliams catalogue.

When I get a £100 payday loan I pay back £125.

How come everyone is complaining about payday loan APR's when catalogues charges are way higher than theirs?

If your been charged that amount of interest, then i suspect your balance will be way over £100.

And as Dennis says, your catalogue payments are spread over a much longer period than a payday loan would be.

Both options make no secret of the interest that will be incurred if such borrowing is used.

Gaia2014

Does the interest go down as the balance does or does it stay at this extortionate rate? I'm with this company too. Still owe around £1,500. Hence my interest is similar to yours abrockall. Everything about this company is expensive including their products! I wonder if they target people with a poor credit history (hence high interest rates). It's a case of companies exploiting people who need access to credit in my opinion and making it harder to get out of debt. It was ever thus.

So does the interest go down with the balance or will the sky high interest remain regardless (I assume it does)?

sourcrates

Gaia2014 wrote: »

Does the interest go down as the balance does or does it stay at this extortionate rate? I'm with this company too. Still owe around £1,500. Hence my interest is similar to yours abrockall. Everything about this company is expensive including their products! I wonder if they target people with a poor credit history (hence high interest rates). It's a case of companies exploiting people who need access to credit in my opinion and making it harder to get out of debt. It was ever thus.

So does the interest go down with the balance or will the sky high interest remain regardless (I assume it does)?

This is from there website :


"If you don't pay in full for goods and/or services you buy from us before your second statement (after the date of purchase) is sent to you we'll apply a credit charge to your account. We calculate that charge on a daily basis from the date of the purchase and add it to your outstanding balance. The calculation will include any goods you've bought in previous statement periods but it will exclude anything that you've bought and returned. Our current credit charge is 2.843 pence in the £ if you pay by Direct Debit, or 3.14 pence in the £ in all other cases."

rockm87

I don't think they target people with poor credit, as you weren't forced to take out an account with them.

It's just the reason you have poor credit, is because you use companies that charge horrible fees for using their credit.

It's ok though, you live and you learn, pay if it off and tell them to stick it!

NorthernMonkey1

sourcrates wrote: »

This is from there website :
Our current credit charge is 2.843 pence in the £ if you pay by Direct Debit, or 3.14 pence in the £ in all other cases."

That is the same as 40% apr, or 44.9% apr respectively.

It's bad, but not anywhere near payday loan APRs

You balance must be £2145 if you are paying by DD, or £1942 if paying in other ways.

You may want to seek advice to see if there are better ways of financing this debt than continuing to pay off a ~£2000 balance at £40 a month