Pay day loans.......

[jonathon5]

Just been watching the news & a story about the apr on these pay day loans.

2500 % apr, that's crazy

I know they seem to be getting more popular as you see loads of new shops opening.

It sounds real expensive, surely there must be a cheaper way of borrowing money ? For the people who use them .

Anyone had any experience ?

[devilsadvocate]

The only people who use them are people who are in debt in the first place and then they get into more debt using these companies.

Who needs to borrow £70 until payday ffs?

I will tell you who...

People who have such a bad credit history they they cant get an overdraft or credit card with the bank

and why do they have a bad credit history.....because they borrowed money they they couldnt pay back at a normal APR.....how are they going to pay it back at 2500%

They are con artists and they shouldnt be allowed to operate
Hopefully they get shut down soon!!

[Lacey_106]

I was readng the small print of these as well the other day.

Basically I concluded that if you paid the money back really quickly, say within the week, then the APR wouldn't be too bad. Example: Borrowing £250 + Interest & fees £23.14 = Total to repay £273.14 thats at a 2689% typical APR

If you look on the Wonga website it tries to justify the huge APR pretty catastrophically.

They've got to make money though i suppose.

[Davo106]

Its not supposed to be over a long period hence the name payday loan, When you get paid you pay it back straight away. If they charged like 5% apr they'd earn fuck all from most people.

[raunchz]

It's a ridiculous business, I'm surprised that apr is allowed tbh. It would just get people into more financial trouble.

[Robin91]

My mate always does them. They're fair enough IMO, if you borrow £200 or so you pay back probably £250 over a few weeks.. That's fair enough, they're hardly going to lend £200 to someone with no/shit credit history and expect £5 interest!

Wouldn't take one personally though, just money down the toilet.

[Gary-VTR]

As said above, because they're such short-term loans, they need to have a high APR to make a decent return in interest.

But then again they do also prey on people failing to pay them back at all. Same way gyms oversell memberships 100:1 capacity - they expect people to fail in order to make big money.

[MikeYost]

have to be mad to take one of these out

[23carragold]

have to be mad to take one of these out

Sad thing is there is always going to be a market for this. The extremely low paid people who are desperate and think the interest won't get that high, or that they'll repay it a tiny bit each time...

[jonathon5]

They seem to be popping up all over.

But if you need a short term loans, it's because you ain't got no dollars. So when you do get some dollars you pay the last loan back leaving you skint again,

On it goes ! The spiral to oblivion begins

[deans2k8]

i took one before, borrowed £100 because my car insurance was due..paid back £130 if i remember...it worked out cheaper as i didnt get paid for like 12 days..and my old bank charged £25 a day for going overdrawn! so in all it worked out the cheaper way, paid it back straight away probably wouldnt get another one now though

[chinkostu]

i use them now and again when something crops up that can't wait til friday. like, a massive garage bill on the day i get paid :-/

[Rudpud]

Rather borrow some money off a family member or mate tbh at least there aint a massive interest after lol

[jonathon5]

Rather borrow some money off a family member or mate tbh at least there aint a massive interest after lol

No good if your family has no
Money to lend you.