Borrowing, at what cost?

themadchef · 03-09-2011 8:31pm #1

Ahhh the heady days when every second advert on TV was for a loan of some sort. The happy housewife ans hubby deciding wether or not to go for 20k or 25k. They dropped off the cliff over the last few years, an no harm either (the loan adds, not the happy couples

).

Lately ive noticed a new trend, the "borrow till pay day" type loan. Get an advance on your wages sort of thing. The APR listed as 1734% (or something similar) :eek: Holy God Miley, that's a whole lot of digits if you mess up your repayment.

Are they poorly regulated or even regulated at all? Are they available in Ireland and if so would you bother your hole knowing the repayment is huge?

Personally, it sounds loan sharkish to me. I guess i'm just stunned at the rates.

kfallon · 03-09-2011 8:32pm

Watch the racing channels, they are still full of those kind of ads :rolleyes:

amacachi · 03-09-2011 8:33pm

themadchef wrote: »

Ahhh the heady days when every second advert on TV was for a loan of some sort. The happy housewife ans hubby deciding wether or not to go for 20k or 25k. They dropped off the cliff over the last few years, an no harm either (the loan adds, not the happy couples ).

Lately ive noticed a new trend, the "borrow till pay day" type loan. Get an advance on your wages sort of thing. The APR listed as 1734% (or something similar) :eek: Holy God Miley, that's a whole lot of digits if you mess up your repayment.

Are they poorly regulated or even regulated at all? Are they available in Ireland and if so would you bother your hole knowing the repayment is huge?

Personally, it sounds loan sharkish to me. I guess i'm just stunned at the rates.

They're popular in America already, mainly in poor areas. Sad really but if people are gonna get them it's their own decision.

Duckworth_Luas · 03-09-2011 8:35pm

Not to worry Brendan O'Carroll will arrive to save the day.

Comedian Brendan O'Carroll stepped in to provide €7,000 to a man whose life was threatened by a loan shark. The caller to Joe Duffy's Liveline, Tom from Finglas, said that the lender told him he would be "found in a ditch" if he didn't pay back the €7,000 debt after borrowing at a massive 600pc.

Mrs Brown's Boys star Brendan said that he knew what it was like to face crippling debt.

"I was sick to the core when I heard this," he said. "I had to offer him help.

"I have been in the same position where you stare at the wall day in and day out. You sit and cry for days and days. All I want is for that man to have a good night's sleep tonight and be safe."

Wertz · 03-09-2011 8:37pm

Payday loans have been going in the states for years. Remember a friend's (now ex) wife used to get one at the of every month to help her make rent and pay off storecards...they're the sort of thing that once you start borrowing on you can never get ahead of yourself.
Seen quoted rates here for some UK one at around 4200% APR.
https://www.wonga.com/#

Always preferred to be a month ahead of myself when it came to money, not a month behind...have someone pay you interest instead of the other way around...

kfallon · 03-09-2011 8:41pm

Duckworth_Luas wrote: »

Not to worry Brendan O'Carroll will arrive to save the day.

Fair play to him, I''m not his biggest fan but he's defo gone up in my estimation

amacachi · 03-09-2011 8:43pm

Duckworth_Luas wrote: »

Not to worry Brendan O'Carroll will arrive to save the day.

When he's spent a few months tryin to get his money of yer man see what his reaction will be.

amacachi · 03-09-2011 8:45pm

Wertz wrote: »

Always preferred to be a month ahead of myself when it came to money, not a month behind...have someone pay you interest instead of the other way around...

It's something that should be taught to everyone IMO. Even though saving is harder than paying back, if you save 60-70% of what you would've spent on a loan each week then the amount will match and you'll have the extra few quid each week to spend as well as not having a huge commitment on your head when something unexpected does comes along.

mrsdewinter · 03-09-2011 8:52pm

Saving is much easier than paying back a loan. That's a lesson that never leaves you...

My name is URL · 03-09-2011 8:54pm

I know a lad that got a loan from Provident to go on holiday at short notice and he had no problems with them. At the end of the day, if it's the only way a person can get hold of cash quickly then they're going to use these services. I still wouldn't recommend it myself, if it's for bills or mortgage payments etc you'd be better off just speaking to the company/bank and working something out with them.

Ally Dick · 03-09-2011 8:54pm

Wertz wrote: »

Seen quoted rates here for some UK one at around 4200% APR.
https://www.wonga.com/#

Oh my god. That's chicanery of the highest order. It's plain wrong. :mad:

Wertz · 03-09-2011 9:13pm

Ally Dick wrote: »

Oh my god. That's chicanery of the highest order. It's plain wrong. :mad:

There's a market for it especially these days. I'd like to think that anyone getting these loans understands the interest structure and intends to pay it off within the the term, but people being what they are I'm sure there are those who have tripped up after borrowing and gone oveer the term and been fleeced.
BBC's watchdog did an extented piece on them before with some horror stroeies from people who sounded like they knew better...

ahyeahok · 03-09-2011 9:21pm

A friend of mine took out a loan from one of these crooks. I was very close to giving her a slap when i found out. I helped her sort it out quickly. These type of things really kick people when they are already down, short term solutions for hard times which over the long term makes things even worse.

amacachi · 03-09-2011 9:30pm

mrsdewinter wrote: »

Saving is much easier than paying back a loan. That's a lesson that never leaves you...

Too right. I don't intend on ever borrowing money again, let alone for a week at 4000% APR. :pac:

Borrowing, at what cost?

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