Just watching add on tv, 799.9%apr !!!
Sounds rediculous doesn't it but they aren't intended as long term loans.
The only way to good low rates is to prove you don't really need to borrow the money....
check out wonga, theres is 4214% apr!!
I like the way payday have a table that highlights the wonga apr as theirs is only 1737%. I heard on the radio this morning that the government were
going to clampdown on store cards and their introductory offers to try to reduce people's borrowing and ultimately their indebtedness. It makes
me 
the only time you want a store card is for the introductory offer or interest free period and then cut it up. They should be clamping down on
how they vet for loans but mainly on the legalized loan sharks that are the wongas, quick quids and paydays.
Sorry rant over and calm.
Pete
I think that people who use these companies, must be completely mad with a capital M, IMHO. Ray
The problem is some people are left without an alternative as they can't get any kind of credit, I know people who've had to do this.
As Martin Lewis of money saving expert points out though, they are not a good idea but they are still considerably cheaper than going over your
overdraft.
Especially people like Halifax who charge £15 fee then £1 a day every day you are over, plus interest. So it can cost £22 to be over your overdraft by
£100 for a week plus interest.
Im not a supporter of payday loans, just saying that they do have a place, albeit a small one.
"Webuyanycar" almost pick the pocket of sellers who are in need of immediate cash. Some might say 'they provide a service' (but at considerable cost). e.g. I contacted a seller with a 2005 Fiat Barchetta for sale on ebay, £4,500 ,(make an offer) 50k miles fsh, there were no takers. I asked what he was looking for. He said that in desperation, that very morning, he's accepted 'Westealanycar's' offer of £2,325.
quote:
Originally posted by Chippy
I think that people who use these companies, must be completely mad with a capital M, IMHO. Ray
They need to teach a bit about money management at school i think, some people are just clueless. Just simple aspects like how to manage a budget, and explaining the pros and cons of debt.
quote:
Originally posted by watsonpj
I like the way payday have a table that highlights the wonga apr as theirs is only 1737%. I heard on the radio this morning that the government were going to clampdown on store cards and their introductory offers to try to reduce people's borrowing and ultimately their indebtedness. It makes me
Sorry rant over and calm.
Pete
I suppose when you need the dosh to pay for some heroin. or similar, does the interest rate really concern them?
All a bit tongue in cheek, as there are probably some very poor folk out there who have no option, And i do really feel sorry for them,
probably oldish, pennyless, and also very cold as winter comes,
Very sad really !!
Steve
quote:
Originally posted by JoelP
They need to teach a bit about money management at school i think, some people are just clueless. Just simple aspects like how to manage a budget, and explaining the pros and cons of debt.
But teaching money stuff to kids is almost pointless. They have NO concept of money except their parents just give it to them.
Honest, I had to do an "off the cuff" cover lesson to a group of 15 year olds who had been doing some booklet work on money (yep, it is
done, they had been given accurate figures for earnings, rents, bills, food and so on) but they really couldn't give a toss about it all.
I used the Martin Lewis "lesson" as a basis, but like most subjects it needs to be taught in small groups if it is to be effective, and the
dear taxpayer will not stand for that.
Places like Wonga are short-term loans only, and they do limit the first loan to (I think) £400.
The trouble is, like credit cards, if you fail to pay the loan off on schedule then the interest on your debt increases VERY rapidly - leaving the
borrower in an impossible position if he/she is often short of cash (i.e. like the people who would need this sort of 'service' ).
I hate the Wonga adverts too... loud-mouthed chavs shouting their mouths off...
[Edited on 24/11/11 by David Jenkins]
[Edited on 24/11/11 by David Jenkins]
Just seen the ad again and got me thinking, I guess they obviously secure the loan against the car, wouldn't show on hpi though would it ? How would you be fixed if you bought a car that had a loan from them secured on it, I guess they keep log book but you only need to have a replacement handy ?
They provide a service.
If you're dumb enough to not understand what 1000% APR means if you don't repay SHORT TERM, it's frankly your own fault.
The less we encourage people to be idiots by nannying them, the quicker they'll learn. It's not the lender's fault if people have no
sense of money management. Wonga for instance in my opinion make it very clear exactly how much you're expected to repay and when and they make
their (RIDICULOUS) APR clearly shown.
What next, you'll be asking for the government to ban people selling useless crap on ebay? Cause they don't make financial sense, and the
buyer should know better than to buy it? Some members of this forum might find themselves incredibly bored 
If you were desperate for someone to lend you 50 quid on Wednesday to feed your kids, and you knew you could pay it back on Friday when you got paid,
To pay 5 quid interest would be a good deal. The lender is only earning 5 quid for all the admin and the risk that he never sees you again.
Everybody's happy.
Except that is 1500 % interest. It only becomes extrortionate if it is not paid back for a year or so.
These people are a lifeline to others. I wouldn't use them, but don't knock it until you've needed it.