Pay Day Loans... the blight of poor people?

[chuggafugga]

Had this through the door whilst sifting for mail, now I'm quite content with my finances and even If I do need to buy something on credit I've got an excellent deal with Nationwide building society anyway at 12.9% APR.

So it appears Provident are going around littering the whole of the UK with these pay day loans/cash advances at stupidly high interest such as illustrated 535.5%, and than you wonder why people promised an easy cash advance are getting into trouble because they need it that badly?

Should these kind of things be regulated or banned outright, I did post a thread the other day regarding mongs of the UK who are sh*t at managing their own money including benefits such as UC, ESA, PIPS and housing benefit and these lovely chaps are giving you a grand in your hand on your doorstep and they make it so easy they even come to you!

It's simply going to get people who can't manage their own money into further trouble if you as me...

 

[Joker62]

Had this through the door whilst sifting for mail, now I'm quite content with my finances and even If I do need to buy something on credit I've got an excellent deal with Nationwide building society anyway at 12.9% APR.

So it appears Provident are going around littering the whole of the UK with these pay day loans/cash advances at stupidly high interest such as illustrated 535.5%, and than you wonder why people promised an easy cash advance are getting into trouble because they need it that badly?

Should these kind of things be regulated or banned outright, I did post a thread the other day regarding mongs of the UK who are sh*t at managing their own money including benefits such as UC, ESA, PIPS and housing benefit and these lovely chaps are giving you a grand in your hand on your doorstep and they make it so easy they even come to you!

It's simply going to get people who can't manage their own money into further trouble if you as me...

View attachment 377283

If that's the case, why the fuck didn't you post this dross in there instead of starting a new thread,

 

[Just_plain_you]

They should not be banned. If they were not required no-one would use them. Often they are cheaper than going overdrawn for a few days.

Ideally everyone would read and follow Dave Ramsey's 7 Baby Steps (American focused but the principles are the same), Mr. Money Mustache (again American but the principles are the same) and Monevator — Make more money, invest profitably, retire early (UK focused)

 

[theoriginalphantom]

Funnily enough we were talking about this over lunch today, and shops such as Brighthouse.
The high APR is, of course, to get them something back as they need paying too. The only other way is a fixed fee with late payment penalties.
The people tempted to take out a loan like this are generally the people who can't get a loan elsewhere, so they'll have to pay a premium for the perceived risk

I was turned down for a short bank loan about 30 years ago. the person I was dealing with said "If you were taking it out for a year, no problems, but you want to pay it back on next pay-day we lose money on that just paying the staff to process it"

 

[Tricky1982]

The worst thing is people take these loans out for things like nights out on the piss or teeth whitening treatments or lip fillers etc, or replacing a perfectly fine sofa because they've seen one they like more in TK Maxx. Hardly essentials but they get it in their heads that they "need" it and there's no talking them round or suggesting saving up for it.

 

[theoriginalphantom]

The worst thing is people take these loans out for things like nights out on the piss or teeth whitening treatments or lip fillers etc, or replacing a perfectly fine sofa because they've seen one they like more in TK Maxx. Hardly essentials but they get it in their heads that they "need" it and there's no talking them round or suggesting saving up for it.

Next you'll be suggesting they 'need' that new sofa to watch sky sports on their new massive TV while drinking wifebeater and smoking fags

 

[kelvin_273]

Joker is correct in his assertation.

 

[chuggafugga]

Joker is correct in his assertation.

Ah well if only could thread merge... but I also consider these a seperate blight as well, I love him really

 

[RonS]

Some sites on afternoon TV offer short term loans at 1990% APR.
I'm sure a lot of "poor" people could be taught to prioritise their funds.
Rent, Food, Electricity, Gas etc then what you have left, if any, is available for other things.
I get the impression some of them have massive commitments: phone contracts involving top of the range iphones, Full Sky Packages, Huge TVs for Brighthouse etc then they try to pay the essentials from what is left.

 

[Ecosse]

Back in the day, and I'm referring to the 50's & 60's...and sometime into the 70's the "Provvy Man" was a local part of the community insofar he helped people like my old M.in.Law spread the cost of big annual hits like school uniforms, books, clothing, and Xmas when Xmas was..sort of....what Xmas was about. They'd sit down for a natter and a cuppa while the Mrs dug her florins & half-crowns out and got her book marked up. Those working class miner's/steel workers/ labourer's wives knew it was a hopeless exercise to go to a bank, but could use the Provvy cheques and get the basics sorted and quite cheaply.
That was then, when most people recognised their liablities and made sure for the most part they abided by them.
M-in-law had her "Provvy Tin" in the kitchen into which what loose change she had was dropped in to make sure she met her commitments. If that meant no Saturday fish tea treat for her girls on Saturday at Moscardinis in town, then tough. They'd get her epic Highland stew & dumplings at teatime....maybe potted hough & mash...or if really in luck her epic thick broths with a huge lump of home made brown bread & marg.

Today?
You have to laugh cynically, of not judgemetally at some of the adverts on telly when we see " Millennial" family piling out the house to their two cars parked in the 3 bed semi while the zit squeezing prat-son complains of the boiler being shot not letting him shower...to which Mom replies much the the effect Quicky Squids will sort it. Really?
Ever heard of a £12.00 per month boiler service & insurance plan. You need a ferkin' good slapping dear.
Cnuts

Then there are the 4 toothed hog-breathed scumbags who lift their Welfare and make a bee-line to the Tesco fag counter and chuck away 20 quid + on Defo Make me a Squillionaire tickets.
Cnuts.

Then.....there's the Social Society life draft dodgers who somehow get included in the food-bank lists.
Cnuts.

Harrumph.

 

[CutLunchCommando]

Are Payday Loans Really as Evil as People Say? (Ep. 241) - Freakonomics

I found this episode of Freakonomics on the issue of Pay Day loans quite useful.

 

[The_Snail]

Don't me a **** you ****

That's not English.

 

[endure]

Had this through the door whilst sifting for mail, now I'm quite content with my finances and even If I do need to buy something on credit I've got an excellent deal with Nationwide building society anyway at 12.9% APR.

So it appears Provident are going around littering the whole of the UK with these pay day loans/cash advances at stupidly high interest such as illustrated 535.5%, and than you wonder why people promised an easy cash advance are getting into trouble because they need it that badly?

Should these kind of things be regulated or banned outright, I did post a thread the other day regarding mongs of the UK who are sh*t at managing their own money including benefits such as UC, ESA, PIPS and housing benefit and these lovely chaps are giving you a grand in your hand on your doorstep and they make it so easy they even come to you!

It's simply going to get people who can't manage their own money into further trouble if you as me...

View attachment 377283

If you're creditworthy enough to get a 13% loan from Nwide then you're equally creditworthy enough to get a 0% 2 year credit card so I'd suggest your Nwide loan isn't as excellent as you think it is.

 

[762baynet]

I had a chat a couple of years ago with a Pl Cmdr who confirmed that these payday loans can be the arse of their lives.
Lads taking phone calls during the day and slipping off to a quiet corner was the combat indicator. Loans to cover loans. No money left to cover beer, fags or PAYD, at which point they can cease to function.

 

[Tricky1982]

Next you'll be suggesting they 'need' that new sofa to watch sky sports on their new massive TV while drinking wifebeater and smoking fags

I work in a former mining town in West (almost south) Yorkshire with some of these people, trust me I'm not making it up. Their wages don't go far enough for these perceived essentials so pay day loans are the go to for instant gratification and a vicious circle of debt...

 

[theoriginalphantom]

I work in a former mining town in West (almost south) Yorkshire with some of these people, trust me I'm not making it up. Their wages don't go far enough for these perceived essentials so pay day loans are the go to for instant gratification and a vicious circle of debt...

I wasn't actually disagreeing with you, there is a stereotype and there are a lot of them living the stereotype
. Harry Enfield (and chums) did a very good parody/reality segment about them

 

[chuggafugga]

If you're creditworthy enough to get a 13% loan from Nwide then you're equally creditworthy enough to get a 0% 2 year credit card so I'd suggest your Nwide loan isn't as excellent as you think it is.

Sorry, credit card not loan!

 

[endure]

Sorry, credit card not loan!

Sorry, credit card not loan!

The Post Office are doing a 28 month 0% purchase credit card at the moment. 0% is better than 13%!

 

[Tricky1982]

I wasn't actually disagreeing with you, there is a stereotype and there are a lot of them living the stereotype
. Harry Enfield (and chums) did a very good parody/reality segment about them

Ah fair one! The other thing I've noticed is they try to sell literally everything on Facebook local selling pages, I'm talking boxes of teabags or half used bottles of shampoo etc or toys they bought their kid a week previously

 

[Joe Roberts]

They should not be banned. If they were not required no-one would use them. Often they are cheaper than going overdrawn for a few days.

Indeed they should not be banned. If they are banned, those who otherwise would have used them will go to the underworld loansharks who will rapidly spring up to replace them.

Mind you, they might well get a better deal from the underworld.