Payday loans may outstrip credit cards

[The Spartan]

You can't buy drugs from your dealer using a credit card

[Arturo Bassick]

What worries me is the increasing number of payday loans/ cash for your cheque kind of shops appearing on high streets. A number of companies are trying to cash in on the bad times tempting poor people into taking expensive loans.

Pawn brokers (and that is what they are) always thrive in hard times. Many will go bust as the folk they lend to will not be able to pay back what they borrow.

[Churchill]

I would rather declare myself bankrupt.

Than what?

[northernladuk]

It is a pretty horrific situation if you read the article carefully. As already mentioned this can only be used by people who can't get credit cards hence the ridiculous rates but further on in the article it mentions the average credit card debt at the moment is £1k.. which tends to go on and on and on. Can you imagine the problems if the average payday loan outstrips ccards as they suggest. £1k rolling at those rates. That is a bloody awful situation.

[Notascooby]

You can't buy drugs from your dealer using a credit card

Sweeeeeping generalisation.

You'll find that drug addicts are unlikely to have the cheque books in the first place and are more likely to turn to bog standard crime. Easier to mug someone than go to cash convertors.

Its desperate people turning to what they think is there last option that drives this and the sad fact then when caught in a debt spiral, without outisde assistance there is little escape.

[AtW]

The law states, that you should quote an APR even though you charge a fixed fee. So if they charge 15 GBP for a loan of 100 GBP for 10 days, it turns out to be a massive % APR, because the fees and charges are suppose to be then converted into equivalent APR.

And what if the person does not pay back in 10 days, the fees are still fixed?

[BrilloPad]

Lovely comments from the guardian :-

"4000% interest rates are simply unjustifiable apart from by pure unadulterated greed."
"Right. Much better to sit in the dark for two days feeding the kids toothpaste."
"Two days toothpaste this week / month is better than three, four, five days toothpaste down the line."

Maybe someone should tell that to the greeks.

In fact no reason to feed the kids toothpaste if you cut back on mobiles, sky, fags, beer etcetc.

[northernladuk]

Sweeeeeping generalisation.

You'll find that drug addicts are unlikely to have the cheque books in the first place and are more likely to turn to bog standard crime. Easier to mug someone than go to cash convertors.

Its desperate people turning to what they think is there last option that drives this and the sad fact then when caught in a debt spiral, without outisde assistance there is little escape.

All drug addicts have credit cards. I see them cutting the lines on TV with one all the time.

[scooterscot]

Than what?

Than use a payday loan.

[Churchill]

Than use a payday loan.

Good luck starving, then. Bankruptcy won't put food on your table or pay your electricity bill.

Your comment was as per usual nonsensical.