Terrible credit rating loans.

ReadingTim

Anthorn wrote: »

Perhaps my reference to moralising posts was unjustified for that. But I see so many times in this thread and elsewhere the advice to not borrow any more and seek debt advice. That is not what I call "constructive" because often the way out of debt is to take on more debt which reduces the overall outgoing funds: We see that in 0% BT cards, consolidation loans and the like. What is good for one and not good for the other is the difference between debt and bad debt but that doesn't mean the same advice cannot be applied to both.


But as I said I see your point and apologise.

Suggest you pop over to the Debt Free Wannabe forum and see how consolidation loans worked out for many of those posters, but suffice to say, it's a somewhat different picture to your assertion above....

Anthorn

Gaz83 wrote: »

Yes, but for who?

Incredibly disciplined people, who have the willpower to cut the old credit cards up, reduce old credit limits and make lifestyle changes to involve spending less money.

The way out of debt for someone who has £4000 of debt, a poor credit history and doesn't care about the interest rate is never, never to take on more debt.

Sorry to say so, but I disagree, credit unions disagree, the government who has sunk £38m into credit union expansion disagrees and so does the DWP disagree. But hey, I respect your right to your opinion although I don't agree with it


How do you think the credit unions are going to provide an antidote to pay-day loans, doorstep lenders and loan sharks and save low income people over a billion pounds in interest? Well, by making loans to them of course. Search for "Credit Union Expansion Project" without the quotes. You might find it the perfect antidote to having your head buried in the sand.

fierystormcloud

Hmmmm the OP joined, posted, and never came back.

Anthorn

fierystormcloud wrote: »

Hmmmm the OP joined, posted, and never came back.

I think it's likely that someone else in a similar situation will arrive at this thread and find it useful. We should not assume that the thread is only useful for the OP. In any case discussion clears the cobwebs and tests our theories and actions.

im-lost

Anthorn wrote: »

I think it's likely that someone else in a similar situation will arrive at this thread and find it useful. We should not assume that the thread is only useful for the OP. In any case discussion clears the cobwebs and tests our theories and actions.

I doubt it, they will just start their own 'I needz 1 million ponds, but I never repay my debts' thread

and are you seriously going to continue pushing credit unions with in some cases 40%+ APRs? it would be cheaper to ask dodgy dave down the pub, at least he wont ask you to save some money upfront for months and pay you next to no interest, and then say you can get a loan at a ridiculous rate of interest, whilst still having savings.

Credit unions, the next 'payday loan scandal' to break, just give it a couple of years.

ReadingTim

Anthorn wrote: »

Sorry to say so, but I disagree, credit unions disagree, the government who has sunk £38m into credit union expansion disagrees and so does the DWP disagree. But hey, I respect your right to your opinion although I don't agree with it


How do you think the credit unions are going to provide an antidote to pay-day loans, doorstep lenders and loan sharks and save low income people over a billion pounds in interest? Well, by making loans to them of course. Search for "Credit Union Expansion Project" without the quotes. You might find it the perfect antidote to having your head buried in the sand.

Sadly this is either soundbyte politics or pie in the sky thinking, but either way, it's never going to work. People rarely go with a pay day loan over a traditional bank or building society out of choice; they go with them out of necessity.

And the reason for this necessity is that they've been rejected by the bank or building society because they can't or won't save money or have any reasonable prospect of repaying the loan they request. Unfortunately, being willing and able to save before being considered for a loan is a pre-requisite for most credit unions, which is the reason why they will never compete with, let alone replace pay day lenders.

Should you require further information, I suggest you start with this thread, although there are plenty more like it on this site.

Anthorn

ReadingTim wrote: »

Sadly this is either soundbyte politics or pie in the sky thinking, but either way, it's never going to work. People rarely go with a pay day loan over a traditional bank or building society out of choice; they go with them out of necessity.

And the reason for this necessity is that they've been rejected by the bank or building society because they can't or won't save money or have any reasonable prospect of repaying the loan they request. Unfortunately, being willing and able to save before being considered for a loan is a pre-requisite for most credit unions, which is the reason why they will never compete with, let alone replace pay day lenders.

Should you require further information, I suggest you start with this thread, although there are plenty more like it on this site.

I'm finding this thread funny now because people apparently cannot understand the very simple concept of Credit Unions. Let me try one last time in another way:


Credit Unions' main aim is sustainability not only for the Union but also for the members. If should be understood that anyone who cannot afford a loan should not be applying for one. The government's main aim in expanding Credit Unions is to provide an alternative to Pay-Day lenders, loan sharks and doorstep lenders. It is not intended to provide free loans that do not have to be secured nor paid back for all. It appears to me that a lot of people posting about Credit Unions in this thread and others should be looking for charity instead.

Most credit unions will try their best to make a loan affordable but at the end of the day if it cannot be afforded it won't be given.

Where pay-day lenders, loan sharks and doorstep lenders score is that their loans are relatively small when compared to banks and that's exactly the area covered by Credit Unions but at considerably lower interest rates.


https://www.gov.uk/government/news/credit-union-38-million-expansion-deal-signed

im-lost

Anthorn wrote: »

I'm finding this thread funny now because people apparently cannot understand the very simple concept of Credit Unions. Let me try one last time in another way:


Credit Unions' main aim is sustainability not only for the Union but also for the members. If should be understood that anyone who cannot afford a loan should not be applying for one. The government's main aim in expanding Credit Unions is to provide an alternative to Pay-Day lenders, loan sharks and doorstep lenders. It is not intended to provide free loans that do not have to be secured nor paid back for all. It appears to me that a lot of people posting about Credit Unions in this thread and others should be looking for charity instead.

Most credit unions will try their best to make a loan affordable but at the end of the day if it cannot be afforded it won't be given.

Where pay-day lenders, loan sharks and doorstep lenders score is that their loans are relatively small when compared to banks and that's exactly the area covered by Credit Unions but at considerably lower interest rates.


https://www.gov.uk/government/news/credit-union-38-million-expansion-deal-signed

The credit unions main aim is profit, don't try to make it out that they are doing it out of the goodness of their hearts and fro the /communities' that they serve, they are there to make a profit to pay the owners / workers salaries, at the expense of the downtrodden who know no better.

and why do they charge up to 10 times the interest of a standard bank loan? is it because their 'customers' are financially illiterate? is it because a lot of their customers are on benefits? and do you find it acceptable that a company will push loans at high interest rates, when the person has savings held with them that will cover the loan they require, the credit union is essentially loaning the member their own money, at high interest rates whilst at the same time paying them little or no interest on their savings.

you couldn't make it up, give me £200, and when you need it back in an emergency, I'll lend it back to you with 40% interest