Short Term/Payday Loans stories please!

Very dangerous and best avoided I would say, due to the huge interest rates etc. You're probably better off using a credit card/getting a loan from the bank

Very dangerous and best avoided I would say, due to the huge interest rates etc. You're probably better off using a credit card/getting a loan from the bank

I have taken out two over the past five years and my view is that people really scare mong them.

When somebody takes out £100 they pay on average £125 over 30 days. The media however likes to report the huge annual APR sums because it suits their agenda despite the fact that the loans are not over a period of a year.

Would i advise taking one out? No (Get a dam job). Are they as bad as the media suggests however? No. When one looks at the people that take them out and keep renewing them it's typically to maintain their lifestyle because there not willing to give up coffee ect.. and strip down to the bones.

I work full-time and took one out, I needed my brake pads done on my car, so I effectively paid £20 for the privilege of doing so.

You should only ever get one if you know for an absolute FACT that you'll be able to pay them back.

Sometimes things can happen that means we have to anticipate our salary a bit, costs that might occur that we hadn't planned or budgeted for, and sometimes these are unavoidable. In these cases, payday loans can provide a fantastic, short term service.. but you HAVE to be RESPONSIBLE.

I mean OBVIOUSLY they want you to not pay it back, so they can keep charhing you.

The clue is in the term 'pay day loans'. They are not meant for the long term.

That's not quite true. I think the model most run off is 15% will completely default. At that stage, if they pass it to debt management they will likely get nothing. They just accept that - it is built into their pricing.

Funnily enough, after I turned my phone on for a bit - a payday loan company called me. I offered them £20 to write off a £2700 debt but they are saying they would rather accept nothing and keep it on the books until it is written off via bankruptcy.

Well in terms of a business you're right, they know X amount of people won't pay it back, but they still want you to get charged so they can make their money....

Aha, that's quite funny. My friend, well not really a friend, but this guy said he took out a £6000 loan without the intention of paying it back because after 5 years they write it off, which I think is what your talking about lol?

Your credit history will suck though!!???

Well in terms of a business you're right, they know X amount of people won't pay it back, but they still want you to get charged so they can make their money....

Aha, that's quite funny. My friend, well not really a friend, but this guy said he took out a £6000 loan without the intention of paying it back because after 5 years they write it off, which I think is what your talking about lol?

Your credit history will suck though!!???

No. When they charge you for non payment - they aren't making anymore than they make when they lend to people who pay on time.

The only extra charges are small admin fees which get eaten up hy the cost of chasing you.

They basically want people to pay back the money but accept that they will have to write off 15% of what they lend. There is no incentive for them for people to fall behind on payments - it ruins their margin rather than improving it. Think about it would you be happy to let someone who owed you money and hadn't paid you back keep it on the basis that you could tell them they owe you more money or would you rather get it back and lend it at the same interest rate to someone likely to actually pay you back.

No. I am going bankrupt and have no income or assets so I mean they just won't get anything because there is nothing to take. My credit rating is already as ****ed as it can be in any case. I won't be able to legally borrow more than a total of £1,000 at any one time for upto 8 years.

The person you have spoken to is possibly confused. The debt could possibly get written off bit more likely would lead to a ccj (which would mean non payment could lead to jail) or ultimately bankruptcy. In any scenario, taking the money and spending it isn't gojng to profit unless the years of consequence that follow really seem worth a few grand to you. It is a fraudulent act too so you could end up going to prison or at the minimum getting a (BRO) bankruptcy restriction order.

I am currently looking at a BRO of probably 8 years. I will never be able to own a home and most likely won't be able to get a car or go on holiday for at least five years or so.

I don't really give a **** about any of that but most people would have to think about things like that to see if a couple of grand is worth it.

No. When they charge you for non payment - they aren't making anymore than they make when they lend to people who pay on time.

The only extra charges are small admin fees which get eaten up hy the cost of chasing you.

They basically want people to pay back the money but accept that they will have to write off 15% of what they lend. There is no incentive for them for people to fall behind on payments - it ruins their margin rather than improving it. Think about it would you be happy to let someone who owed you money and hadn't paid you back keep it on the basis that you could tell them they owe you more money or would you rather get it back and lend it at the same interest rate to someone likely to actually pay you back.

No. I am going bankrupt and have no income or assets so I mean they just won't get anything because there is nothing to take. My credit rating is already as ****ed as it can be in any case. I won't be able to legally borrow more than a total of £1,000 at any one time for upto 8 years.

The person you have spoken to is possibly confused. The debt could possibly get written off bit more likely would lead to a ccj (which would mean non payment could lead to jail) or ultimately bankruptcy. In any scenario, taking the money and spending it isn't gojng to profit unless the years of consequence that follow really seem worth a few grand to you. It is a fraudulent act too so you could end up going to prison or at the minimum getting a (BRO) bankruptcy restriction order.

I am currently looking at a BRO of probably 8 years. I will never be able to own a home and most likely won't be able to get a car or go on holiday for at least five years or so.

I don't really give a **** about any of that but most people would have to think about things like that to see if a couple of grand is worth it.