Reply to: Payday loans may outstrip credit cards

[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.

[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.

[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]

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!

[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.

[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

[NotAllThere]

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

INKSPE.

[Churchill]

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

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

[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..

[MarillionFan]

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

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

[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.

[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.

[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.

[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.

[rd409]

That would be 'Raymond' discussed on this board last week.

would like to see a cap on APR say 30% so borrow £100 and it costs £130 max in a year. Plus better regulation.

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.