Payday Loans

What do you think of all these adverts for these loans on the tv? The interest rates are ridiculously high. Do you think they are tempting vulnerable people to get into serious debt? I think a stop should be put to them somehow.

Re: Payday Loans

I completely agree with you.

Re: Payday Loans

couldn't agree more...people must be really desperate when they have to resort to these....when they need money and can't get it anywhere else...these places shouldn't be allowed to charge so much interest...it should be illegal

Re: Payday Loans

Of course it's unfair & expensive.
THe CREDIT UNIONS are so much better & an escape route from the real nasties, loan sharks.

Re: Payday Loans

I think they should be made illegal. Vulnerable people who probably have no idea what interest they will be charged are being targetted, which is wrong. How can interest rates of 1000% benefit anyone???(Apart from the lenders, of course.)

Re: Payday Loans

If they are used as intended the interest isn't too bad, it's only when you don't pay back in the week or month you have agreed that interest is so high.

There is a place for them IMO but people need to be sure they can pay them back on time and that they understand the terms when they take them out.

Only used them once and felt fine to us at the time. Borrowed £100 to kit out my husband when he returned to work after a year off, needed a shirt and tie and trousers for his new job. We paid that back with his first pay check and paid £15 interest. This as we had agreed to the terms felt perfectly fair.

Take away these facilities completely and where do people get short term loans from ? The banks laugh, credit unions are great if you plan ahead but some of us don't, family at the time offered but we couldn't in good conscience take from people no better off than us.

Re: Payday Loans

Forgive me for asking Julie but surely (a) you wouldn't have been 'taking' from the family you would have been 'borrowing' there is a difference and (b) wouldn't your conscience have felt better if you had borrowed from them and paid back with £15 interest thus giving them a little spending money and helping them.

My wife and I share all things financial, we have one joint bank account but it's split into different amounts for different things, if I borrow from her it gets paid back with interest, thus our joint account is bigger, and we are a little better off. We have done this for many years and it's been a great help to our finances.

Re: Payday Loans

Borrowing from people who could ill afford it making them short for the week didn't seem right to us at the time, they needed to pay their rent and had helped us previously when we couldn't afford our mortgage. So no we couldn't have taken from them again.

It's always funny with family those who have little or nothing always offer help but those who are loaded never do. Perhaps it's just our lot but that is how it seems to happen here.

Re: Payday Loans

Sadly, in our unequal society, they do serve a purpose. Many of us believe we would never agree to paying 2000+% on a loan but if that hard time hits you and you have no choice, most of us would sign on the dotted line just to be able to get through.

I think the existence of these loan sharks is more a sad indictment on our society than it is about the people offering to loan at those levels of interest.

Re: Payday Loans

That's very true I get quite cross that people who never need some services say they should be banned and no thought of how people will manage, at least these places are not loan sharks like some people deal with who will break a leg rather than take you to court. Now those are the people we should be trying to prevent trading.