Pay day loans

[Barry Siddall]

Originally Posted by Muppet

You've got to look at it like "hiring" money.

Back in the day, you'd happily pay £3 a night to hire a DVD that cost a tenner - hire it for a year and it'd cost you over a grand, which is ridiculous.

If you hired a car at the rate you pay for one day's hire, you could probably pay for the car 3 times over in a year.

"Hire" £50 for a couple of days and you'll pay a few quid charge for it. You're not supposed to have it long term, but they're still obliged to represent it as APR. The analogy Martin Lewis always uses is if a mate lent you £20 for a week, you'd think buying him a pint was reasonable. Frame that as £3 a week interest on £20 for a year and the APR would look like extortion.

Good post - that reminds me a lad at work borrowed a fiver off me yesterday and now he's off for a week the bassa

[monkeytassle]

Originally Posted by Barry Siddall

Good post - that reminds me a lad at work borrowed a fiver off me yesterday and now he's off for a week the bassa

compound it

[Longy]

Originally Posted by Barry Siddall

Good post - that reminds me a lad at work borrowed a fiver off me yesterday and now he's off for a week the bassa

Gan round his house and take his telly.

[SOLid]

I use payday loans of £100 maybe four times a year when things are tight. Wonga are probably the most expensive but this month they had a 50% off deal so £100 for about a fortnight will cost me £8.

It's always worth checking out Martin Lewis's site http://www.moneysavingexpert.com/
Loads of info there about the best loan deals, cr cards, getting refunds etc. He says he is writing a guide about payday loans but I don't see it published yet.

There was a very interesting article about the resurgence in the pawnbroking business in my Sunday paper magazine. Nowadays there are specialist outfits who deal in jewellry, fine art and so on. The thing is the max rate is 60% so it's a far better option if you need the dosh for a few months or you find you have to extend it beyond when you hoped to reclaim.
They will advance up to 40% of the item's value. But I guess that you might get nowhere near what you think it's worth in many cases.

Payday loans are absolutely fine if you are 100% certain you can repay quickly and you only need a relatively small amount for a few days or a few weeks only. Otherwise you are on shit street.

[Le Chuck]

Originally Posted by SOLid

I use payday loans of £100 maybe four times a year when things are tight. Wonga are probably the most expensive but this month they had a 50% off deal so £100 for about a fortnight will cost me £8.

It's always worth checking out Martin Lewis's site http://www.moneysavingexpert.com/
Loads of info there about the best loan deals, cr cards, getting refunds etc. He says he is writing a guide about payday loans but I don't see it published yet.

There was a very interesting article about the resurgence in the pawnbroking business in my Sunday paper magazine. Nowadays there are specialist outfits who deal in jewellry, fine art and so on. The thing is the max rate is 60% so it's a far better option if you need the dosh for a few months or you find you have to extend it beyond when you hoped to reclaim.
They will advance up to 40% of the item's value. But I guess that you might get nowhere near what you think it's worth in many cases.

Payday loans are absolutely fine if you are 100% certain you can repay quickly and you only need a relatively small amount for a few days or a few weeks only. Otherwise you are on shit street.

if you only use them a few times a year, its worth notuing that Quidco do cashback on many of them. Could work out cheaper if you signed up for a new one everytime

[HellsBells]

Originally Posted by Muppet

You've got to look at it like "hiring" money.

Back in the day, you'd happily pay £3 a night to hire a DVD that cost a tenner - hire it for a year and it'd cost you over a grand, which is ridiculous.

If you hired a car at the rate you pay for one day's hire, you could probably pay for the car 3 times over in a year.

"Hire" £50 for a couple of days and you'll pay a few quid charge for it. You're not supposed to have it long term, but they're still obliged to represent it as APR. The analogy Martin Lewis always uses is if a mate lent you £20 for a week, you'd think buying him a pint was reasonable. Frame that as £3 a week interest on £20 for a year and the APR would look like extortion.

Thats a really good analogy.

[AndrewP]

Originally Posted by 3.142

Your mates/family are surely a cheaper option if you are using them for a week or so. Don't see any reason for them to exist. They should charge a more "sensible" interest rate (say, 100%) plus a fixed arrangement fee. Far better.

Which would amount to the same thing surely?

I just wish most of the people who use payday loans were credit worthy, if they were, I'd just lend them the money near the end of every month and be minted three days later.

My guess is that's why it's so expensive, a lot won't bother paying it back.

[Horatio Pugwash]

Originally Posted by TouchSAFC

One of me mates just borrowed 3k over 2 years and as he's had trouble in the past asked me to stand as guarantor to which I've agreed. Got a copy of his agreement - 50 % APR !!!!!!!!!!! I said I'd lend him the money but he wants to try and repair his credit rating. Fucking scandalous !

He must be thick as whale omelette

My first reaction is let the idiots get themselves in the shit, but on second thoughts,maybe something should to protect the thick from themselves

[NeilP]

Originally Posted by SedgefieldMackem

NatWest do me a nice one.

First transaction over my overdraft limit costs £6, plus £6 every day until I pay it back.

Is that true?

If you go overdrawn by £100 for a week they'll charge you £6 plus 7 x £6 which is £48 on a £100 credit. If you go £50 overdrawn it will cost the same but it's £48 interest on a £50 credit for one week !!!!

The payday loans are way cheaper than that.