Payday loans may outstrip credit cards

[Churchill]

People starve in Africa everyday I don't see them queuing at pay day loans with cheque in hand. Have you ever been to a developing country? I'm guessing not or you would not use the term starving so loosely. It's particularly insulting to suggest people are starving because of financial reasons when we've on the verge of an obesity epidemic.

We have a benefits system in place to see that welfare is maintained.

Why would anyone use payday loans when facilities are in place to provide us with basic needs?

Where I have been and what I have done is not part of the question.

The benefit system would not tide a contractor over who'd been on the bench for a considerable amount of time and recently started a contract and was waiting for an invoice to be paid.

The example I've quoted didn't happen to me it happened to a mate and it kept him afloat when working away from home until his invoice was paid.

And for the record, I was working in Germany while you were still in nappies, along with the bloke cited in the example above.

[vetran]

The problem with this is no one would want their £100 logged with someone with a bad history for a year just for 30% return, and £100 at 30% max APR would be roughly only £2.5 a month, so not a financially viable solution.

+1 for Better regulation though.

never said it was a complete solution, I would suggest it reverts to 30% after a while, or they are allowed to charge an admin fee or the max interest recoverable can be 100%. Also if the risk reward ratio is poor there will be less willingness to lend.

Currently a £100 loan can easily balloon to thousands.

If they are on benefits there are a number of hardship loans, contractors can get business loans or negotiate advances.

More easy credit will only benefit the lenders & Crooks, who do you think pays for 'Toxic loans'? All other borrowers and with the payday loans you are robbing the poor to pay for the poor or crooks.

[scooterscot]

The benefit system would not tide a contractor over who'd been on the bench for a considerable amount of time and recently started a contract and was waiting for an invoice to be paid.

Boom and bust individual style.

If your contract income is spent in the same month it is earned you've no business being a contractor. Contracting is for those who can call themselves experts, who are at the top of their game, such people do not have extend breaks in employment unless engineered.

Why on earth would a benefits systems need to tie a contractor over who cannot stretch a month's income beyond 2 or 3 months? Nether should it. If you cannot find income for an extend period retire or re-skill but don't complain your newly inflated lifestyle cannot be met by the welfare system.

PS: My parents could not afford nappies, towel job. What an arrogant expecting must have it all society we've become. It'll all end in tears.

[mudskipper]

It's always been around 'on tic', 'the never never', 'HP'. It's nothing new.

It preys on optimists. People who think tomorrow will be better.

[MarillionFan]

It preys on optimists. People who think tomorrow will be better.

It preys on people who don't think about tomorrow.

[scooterscot]

It preys on people who don't think about tomorrow.

Here in Greece everyday is groundhog day - want in?

Need to watch some Bill now..

[Churchill]

It preys on people who don't think about tomorrow.

Faith, Hope and Charity - Only one survived...

[NotAllThere]

---when you walking past one of these places check out the people inside £100 bench jeans, £400 I phones £90 superdry jackets...

INKSPE.

[Support Monkey]

Boom and bust individual style.

If your contract income is spent in the same month it is earned you've no business being a contractor. Contracting is for those who can call themselves experts, who are at the top of their game, such people do not have extend breaks in employment unless engineered.

Why on earth would a benefits systems need to tie a contractor over who cannot stretch a month's income beyond 2 or 3 months? Nether should it. If you cannot find income for an extend period retire or re-skill but don't complain your newly inflated lifestyle cannot be met by the welfare system.

PS: My parents could not afford nappies, towel job. What an arrogant expecting must have it all society we've become. It'll all end in tears.

same here i remember we had a 50p meter telly and a card meter for electric, when it ran out it ran out no popping up the high street to borrow money and we survived quite happily without any nike trainers or levi jeans or the latest bike, of course we want all these things but we don't need them

[lilelvis2000]

Surely if they budgeted properly they would not need a loan to cover them from one payday to the next.

budgeting is knowing what is coming in and spending it wisely and making it last until you get payed again even if that means going without

The loan is not from one payday to the next..its from when they run out of money to the point their pay enters their bank account. Probably no more than 2-3 days. The loan amount would be what they would spend in those days - ie: whatever bills come due.

With the delays in bank transfers a person could run out of money on a weekend, but have bills due on the Monday. And given that banks now rip people off even more on overdraft fees. they loans may be the cheapest option.