Pay day loans

[Deleted User]

Barbara_Lowing wrote: »

My son just came home talking about taking a pay day loan to buy himself a gaming system. I laughed and told him I would lend him the money. He insisted, however. Said good things about Wonga. What is the deal here? Is that even possible? A loan to buy entertainment?

Stick him in a room for 6 hours locked then.

Then again people buy cars for the likeable factor and don't seem to mind when they are in 6 car pile up and the likes !

Payday loans damage credit files for years - that actually suits me.

Have a pay rise on it's way when I've finished my latest so it's not always misery.

Ebe_Scrooge

Barbara_Lowing wrote: »

My son just came home talking about taking a pay day loan to buy himself a gaming system. I laughed and told him I would lend him the money. He insisted, however. Said good things about Wonga. What is the deal here? Is that even possible? A loan to buy entertainment?

A payday loan is a very bad idea under any circumstances - you'll pay back a huge amount of interest, as well as trashing your credit file.


Now, I can sort of - kind of - just about - understand why someone may take one out if they literally have no money to buy something to eat ... at a push. But to buy a gaming system with ?????? Utter madness. I'm fairly sure - though I may be wrong - that a gaming system would come under the category of a "luxury" rather than a "need".


Joking aside, please don't let your son do this. It really is an incredibly bad idea. Lend him the money yourself if you want to - though to my mind he ought to be saving up until he can afford it. Borrowing any amount in order to buy a totally non-essential item such as this is really not the best introduction to sensible financial management.

ViolaLass

Barbara_Lowing wrote: »

My son just came home talking about taking a pay day loan to buy himself a gaming system. I laughed and told him I would lend him the money. He insisted, however. Said good things about Wonga. What is the deal here? Is that even possible? A loan to buy entertainment?

Ask him how much he'll have to pay back then offer him the same deal with you (then he can still have the pain of overpaying but do so safely).

StopIt

Barbara_Lowing wrote: »

My son just came home talking about taking a pay day loan to buy himself a gaming system. I laughed and told him I would lend him the money. He insisted, however. Said good things about Wonga. What is the deal here? Is that even possible? A loan to buy entertainment?

If he can pay the item off in a month (That's what these things are for right? I'll avoid myself the trouble of falling off my chair laughing trying to say THAT with a straight face) tell your son to get a credit card, buy said item and pay said item off at the statement date.


Total interest payable: 0%, Credit Files Destroyed: 0.


See the above post by ZX81 as to why the PDL route is not something to say "Good things" about.

ndf9876

I second a trip to the DebtCamel website.

Thandersen

Please don't even think about taking up a pay day loan. It's easy money for sure, however the risks are far too great. The interest will skyrocket (without a doubt), if you fail to repay the company within the statement date, you will destroy you credit files, too many don't, while trying to compare it to the do's.
I am talking from experience I happened to take up a loan from such a company (MONEYBANKER) and this has more or less ruined my financial life (some will even say life in general).

Stevie_Palimo

Thandersen wrote: »

Please don't even think about taking up a pay day loan. It's easy money for sure, however the risks are far too great. The interest will skyrocket (without a doubt), if you fail to repay the company within the statement date, you will destroy you credit files, too many don't, while trying to compare it to the do's.
I am talking from experience I happened to take up a loan from such a company (MONEYBANKER) and this has more or less ruined my financial life (some will even say life in general).

I will add that these loans do often help people to and are a useful safety net for many people who cannot access other lines of credit or do not want to ask people they know for help, As for sky high interest on the loans that would vary across a few factors of loan amount taken and over what period.

When people see a APR of 4673% on a loan they think if you borrow a £100.00 for a month you will pay bay back £10.000.000 which is nonsense as in most cases a loan of £100.00 over 30 days would incur costs pf around £15.00 to £30.00 top end lender dependent, Far cheaper than 3 missed direct debits and the hassle of them wouldn't you agree.

Just to give a fair perception on these loans as some people know I work in this area and for the most part now responsible lending practices are in place with quite stringent application processes whereby people will be scrutinised a lot more against the amount they are seeking and income versus outgoings, What some people need to realise is that blaming the payday loan Companies in full for a problem that they are in and debt is totally unfair when they actually have some responsibility over the issue as they took the loan out knowing the financial position they were in.

StopIt

Stevie_Palimo wrote: »

I will add that these loans do often help people to and are a useful safety net for many people who cannot access other lines of credit or do not want to ask people they know for help, As for sky high interest on the loans that would vary across a few factors of loan amount taken and over what period.

When people see a APR of 4673% on a loan they think if you borrow a £100.00 for a month you will pay bay back £10.000.000 which is nonsense as in most cases a loan of £100.00 over 30 days would incur costs pf around £15.00 to £30.00 top end lender dependent, Far cheaper than 3 missed direct debits and the hassle of them wouldn't you agree.

Just to give a fair perception on these loans as some people know I work in this area and for the most part now responsible lending practices are in place with quite stringent application processes whereby people will be scrutinised a lot more against the amount they are seeking and income versus outgoings, What some people need to realise is that blaming the payday loan Companies in full for a problem that they are in and debt is totally unfair when they actually have some responsibility over the issue as they took the loan out knowing the financial position they were in.

April 1st was 4 days ago.


Oh god, you're serious. A useful safety net my behind. Anyone who cannot turn anywhere other than PDL need to stop borrowing and get help, not continue the debt trap.


Again, if you can afford to pay something back by payday either 1: Save something else to defer the bill until you are paid or 2: Use a credit card and pay no interest.


As for saying these guys are responsible now? Hahaha, I love me some comedy in the mornings.

Stevie_Palimo

StopIt wrote: »

April 1st was 4 days ago.


Oh god, you're serious. A useful safety net my behind. Anyone who cannot turn anywhere other than PDL need to stop borrowing and get help, not continue the debt trap.


Again, if you can afford to pay something back by payday either 1: Save something else to defer the bill until you are paid or 2: Use a credit card and pay no interest.


As for saying these guys are responsible now? Hahaha, I love me some comedy in the mornings.

Very clever response above :-

So people that take the loans have no responsibility at all ? , That is the comical part here and none of my post reflects this attitude or childish stance you have.

StopIt

Stevie_Palimo wrote: »

Very clever response above :-

So people that take the loans have no responsibility at all ? , That is the comical part here and none of my post reflects this attitude or childish stance you have.

I'm sorry, but I'm not accepting any defence of the PDL industry as being "responsible lending". It is predatory lending at best, and in nearly every usage case there is a better alternative.


They prey on the ignorant, or desperate and people should be educated to avoid them and help themselves with financial management. So no, your responsibility argument makes no sense to me as I am arguing that these people should be avoided, rather than encouraged. Anyone who encourages them should bare their own responsibility for facilitating people continuing potential debt crises rather than addressing them.