Reply to topic  [ 20 posts ]  Go to page Previous  1, 2
Insolvency group says millions turn to payday loans 
Author Message
What's a life?
User avatar

Joined: Thu Apr 23, 2009 7:56 pm
Posts: 12030
Reply with quote
This was exactly the point the chap made on Radio 4 this morning. The banks are far, far worse with regard to unauthorised overdrafts - I think most of us might have been there at some time or another.

_________________
www.alexsmall.co.uk

Charlie Brooker wrote:
Windows works for me. But I'd never recommend it to anybody else, ever.


Wed Dec 07, 2011 11:11 pm
Profile
Doesn't have much of a life
User avatar

Joined: Fri Apr 24, 2009 5:12 pm
Posts: 1171
Reply with quote
I can see parallels with a bond market here: Prudent countries like Germany pay 1.1% on their issued bonds while idiots like Greece, Italy and Portugal pay 7% to borrow.
The saying still holds, fools and their money etc etc...
But hey, it's easier to blame somebody else!

_________________
Image
Free Sim with £5 credit


Wed Dec 07, 2011 11:18 pm
Profile
I haven't seen my friends in so long
User avatar

Joined: Tue May 05, 2009 3:29 pm
Posts: 7173
Reply with quote
koli wrote:
I can see parallels with a bond market here: Prudent countries like Germany pay 1.1% on their issued bonds while idiots like Greece, Italy and Portugal pay 7% to borrow.
The saying still holds, fools and their money etc etc...
But hey, it's easier to blame somebody else!

Because, of course, there's no such thing as irresponsible lending.

What's next, a return to debtors' prisons?

_________________
timark_uk wrote:
That's your problem. You need Linux. That'll fix all your problems.
Mark


Wed Dec 07, 2011 11:25 pm
Profile
Doesn't have much of a life
User avatar

Joined: Fri Apr 24, 2009 5:12 pm
Posts: 1171
Reply with quote
Linux_User wrote:
koli wrote:
I can see parallels with a bond market here: Prudent countries like Germany pay 1.1% on their issued bonds while idiots like Greece, Italy and Portugal pay 7% to borrow.
The saying still holds, fools and their money etc etc...
But hey, it's easier to blame somebody else!

Because, of course, there's no such thing as irresponsible lending.

Erm, hello, good morning!
That's why they charge so much much because they are lending to unreliable borrowers. To people who can't even get a credit card because as soon as they get it they'll buy an xbox and 40" plasma tv and they can't pay it back! The default rates must be insane on these debts...

_________________
Image
Free Sim with £5 credit


Wed Dec 07, 2011 11:37 pm
Profile
Spends far too much time on here
User avatar

Joined: Thu Apr 23, 2009 9:40 pm
Posts: 4876
Location: Newcastle
Reply with quote
koli wrote:
That's why they charge so much much because they are lending to unreliable borrowers. To people who can't even get a credit card because as soon as they get it they'll buy an xbox and 40" plasma tv and they can't pay it back! The default rates must be insane on these debts...


They charge so much because it's a short term investment effectively.

Rates of interest in terms of APR are only really applicable to a year long (hence the A), to compare a payday loan is to compare a drag car in a single race to a very efficient car driving for a week, if the fuel margin goes up you see a very fast and short lived return from the drag car but a low and sustained return from the efficient car.

People who can't afford to pay off credit cards in full at the end of each month are actually better clients, almost all clients will pay it back in full (even those that default on payments usually make payments in the end, those that don't are up financial poop creek hence the IVA and bankruptcy which are far more critical in terms of lending), a lot of people with 'poor' repayment actually get MORE credit and get into a vicious spiral with more and more borrowing by living beyond their means.

I can't say any more details due to things I can't say but the sites like Wonga are actually far better than a bank overdraft. They might get a rap for being 'loansharks' but it's not entirely warranted

_________________
Twitter
Charlie Brooker:
Macs are glorified Fisher-Price activity centres for adults; computers for scaredy cats too nervous to learn how proper computers work; computers for people who earnestly believe in feng shui.


Thu Dec 08, 2011 12:57 am
Profile
Display posts from previous:  Sort by  
Reply to topic   [ 20 posts ]  Go to page Previous  1, 2

Who is online

Users browsing this forum: No registered users and 11 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
Jump to:  
Powered by phpBB® Forum Software © phpBB Group
Designed by ST Software.