Payday loans may outstrip credit cards

[lilelvis2000]

They're fools, fools, I tell you, fools.

Tomorrow is always worse.

Trust me on that.

I've used the time machine.

Sneaking on the Enterprise again. How did James Kirk not find out!

[Support Monkey]

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.

Its obviously beyond me?? Run out of money!! surely thats called budgeting, I have this amount of money divided by this amount of days, thats the amount i can spend each day until i get paid again,

Whatever bills are due?? surely the same bills come in every month yes there will always be the emergency ones but in general you have the same costs each month, every January Martin lewis goes on radio 2 and tells people to start saving for christmas because it will arrive on the 25th of december you know its gonna happen, its the same process

Delays in bank transfers?? there quicker now than they ever have been

[lilelvis2000]

Delays in bank transfers?? there quicker now than they ever have been

It still can take three days depending on who you bank with and what type of account you have. It take three days for any transfer from Cater Allen to my account at Nationwide. As far as I'm concerned it still take three days in general. There have been times when the normal date that my salary would arrive in my account ends up on a weekend or a bank holiday. So I can see just how easy it is would be for a person who is just able to live within their means to be out of cash on that day.

Budgeting is fine an all and I do agree that saving is a foreign concept to many given how cheap credit was and the delusion that your pension is all you ever need.

[vetran]

Hark at you lot.

'I'm in the top 10% of earners why can't these people just budget, its just cutting down to 2 Montecristos and a Magnum of Moet a day. No self control! - peasants'

I am in the truly novel situation that I have to check my balance regularly, first time since I was 25. I am well paid (relative to most) and we have a warchest. But rather than let my Bank bend me over I want to make sure all my accounts stay in credit. I don't just reach into my pocket and take out money any more.

We live in a charmed existence, it may not seem like it compared to Fred the Shred but we do. When was the last time you seriously saved for a new fridge (I'm talking the £100 no name brand not a SMEG or F&P)? We have a £1K+ fridge, I assume most of you do?

Plenty of people who are already struggling having been laid off, short hours etc. They are earning £15-20k with a family. They get to the third week and they can't afford to pay the electric bill. These loans are really tempting. They need regulating.

Also if they were all as clever as you they would probably earn the same! It might be obvious to you but many people don't understand it. Its difficult to save a third of your wage if you earn £10k a year.