MK5 Golf GTI

General => Random Chat => Topic started by: Andy on June 18, 2012, 10:20:09 pm

Title: pay day loans--how much apr
Post by: Andy on June 18, 2012, 10:20:09 pm
these should be looked into by trading standards,a company charging 1750 apr on a loan :fighting:
Title: Re: pay day loans--how much apr
Post by: sub39h on June 18, 2012, 10:24:54 pm
Some ppl are desperate

Go onto Wonga.com and see how much you have to pay back for borrowing £1 for a day. It'll make you laugh!
Title: Re: pay day loans--how much apr
Post by: Mk5 GTian on June 18, 2012, 10:33:33 pm
Some ppl are desperate

Go onto Wonga.com and see how much you have to pay back for borrowing £1 for a day. It'll make you laugh!

Ha Ha! £6.56!!  :signLOL: B*stards. 4214% APR. Legalised loan sharks.
Title: Re: pay day loans--how much apr
Post by: stealthwolf on June 18, 2012, 10:33:42 pm
these should be looked into by trading standards,a company charging 1750 apr on a loan :fighting:
Yes but they're not long-term loans eg over five years. They're meant to be for short term use only. If you borrow £300 and pay back after five days, it's £320. APR is meant to be for long term loans and hence shouldn't really be applicable to short-term loans.
Title: Re: pay day loans--how much apr
Post by: gti yorks on June 18, 2012, 10:36:39 pm
Im sorry, but whoever uses these sort of loan companies must need their head examined, it's ridiculous that they can charge people the sort of interest rates they do. It's a sure way of losing control of whatever debt you are already in. Brighthouse do a similar thing, but it's a home furnishing shop, buy a £500 fridge and end up paying a grand for it :surprised:
Title: Re: pay day loans--how much apr
Post by: Eddie-NL on June 18, 2012, 10:40:07 pm
they are the in thing, there are plenty of adverts to sucker people in.

I wonder how much profit these companies make in a year and how many people default on repaying
Title: Re: pay day loans--how much apr
Post by: Dp_Ed30 on June 18, 2012, 10:55:26 pm
As above apr means nothing for these as they are short term. Most people don't even know what apr means.

I have used one before, I borrowed £170 for 4 days when I was in a jam, paid £182.50 back. Helped me out of a sticky situation for minimal money
Title: Re: pay day loans--how much apr
Post by: DaveB@Vagbremtechnic on June 18, 2012, 11:31:42 pm
I don't like them but ^^^^^^ that's a good point. If I go over my overdraft Barclays cost me £22 for a £500 buffer zone for a few days. Same but different
Title: Re: pay day loans--how much apr
Post by: Tamiyoman on June 19, 2012, 12:54:29 am
Saw one on TV a while back and managed to hit pause and read the VERY smalll print at bottom, APR was quoted at 8200%  :signLOL: :signLOL:

Bargepole with dog poo on the end!!!
Title: Re: pay day loans--how much apr
Post by: Gene Hunt on June 19, 2012, 07:07:38 am
Desperate i know but for some prob cheaper than getting 3-4 direct debits bounced by the bank & paying 30.00 odd quid or so for each one.
Title: Re: pay day loans--how much apr
Post by: JPC on June 19, 2012, 08:54:38 am
I am not a fan of these type of things, but they suit a particular need. I really dislike how some blatantly pry on the vulnerable, but on the whole i guess they get people out of a sticky situation sometimes.

I really do think APR is something that can't be used with something like this. They don't charge all that much but people see the APR rates and call them all names under the sun. these are not the type of loans you take out on an annual basis.
Title: Re: pay day loans--how much apr
Post by: Weston on June 19, 2012, 10:17:38 am
I do wonder if the 25% discount codes save you 25% of the whole cost, or just reduce the APR by 25. Could be a bit misleading.
Title: Re: pay day loans--how much apr
Post by: wigit on June 19, 2012, 10:26:19 am
what worries me about these is the spiral effect where some people end up getting pay day loans to pay off pay day loans
Title: Re: pay day loans--how much apr
Post by: Dp_Ed30 on June 20, 2012, 12:46:36 am
Never look at apr when u take out any loan. Flat rate is what you need to look at.

If you manage these loans proberly they are handy sometimes, it's when people fail to pay things get sticky.

There not the kind of thing you want to be using all the time but it's handy if you wages get messed up or you get a big bill.
Bank charges are a killer
Title: Re: pay day loans--how much apr
Post by: sub39h on June 20, 2012, 09:06:46 am
somebody on edition38 brought up an interesting point

some of those petrol stations offer a service whereby if you don't/can't pay and you leave your details you can pay back within a week

if i ever was in a sticky enough situation that's probably what i'd do when filling up - say i've forgotten my bank card, leave my details (so it becomes a civil offence instead of a criminal offence) and pay back later once my paycheck comes in. it's essentially an interest free loan.