I know I’ve written a few times about pay day loan companies before but they make me so mad that I’m going to write about them again. To be honest, I’d write about them once a week or more if I thought it would stop people from taking them out!
The thing that I hate about these companies is that they prey on people who are often too desperate for money to consider the consequences of taking out a loan like this and the very nature of the way the loans work means that it’s all too easy for debt to spiral out of control very quickly.
Not only do am I subjected to the advertising on TV which makes a payday loan sound like the perfect solution for short term money troubles, I also get daily emails from companies telling me I could have money in my account within two hours if I wanted it.
And now, today I get a text message from a company telling me I’m pre- approved for £700 which I could have within 15 minutes if I apply online now! A text message!
I just find it ridiculous that companies like this are allowed to do this.
I could quite easily have clicked on the link (blurred out above because I refuse to advertise this companies name or website) and in the time it took me to write this, had £700 put in my bank account.
Looking at the site it tells me that bad credit isn’t a problem because the funds are only being loaned to me for 31 days, and in fact, it goes on to tell me that most lenders specialise in people who have a history of poor credit so if I have bad credit (I don’t) I shouldn’t worry!
The minimum criteria is that I am 18 and over, can provide proof of my identity and I must have a bank account and when they give me the money, they’ll set up a Direct Debit the next month to take it back along with the charge I would pay to lend it. Except that if the Direct Debit isn’t convenient, I can just give them a call and they’ll rearrange – for an extra charge!
I would imagine that in a lot of cases the Direct Debit isn’t going to be convenient as most people taking out one of these loans aren’t going to suddenly come into money the next month and be able to pay the loan amount plus the charges back – it’s just a never ending circle for some with the charges increasing every month.
On a loan of £750, the repayment amount within 31 days would be £937.50 – almost £200 to borrow it for a month. And if I couldn’t afford to pay it back the next month and I deferred the payment, that would be another £200 to pay the following month!
Surely that’s just a legalised loan shark isn’t it?
I am a salaried employee, and I earn well, but sometimes it becomes difficult to meet the expenses because I have to fulfil the needs of my children who are now pursuing higher education, so I decided to apply for payday loan from Paydayiom, and it was simplest way of overcoming the short-term financial crisis.
I can figure things out pretty quick. I'm thinking about setting up my own but I'm not sure where to start. Do you have any points or suggestions? Cheers http://masterpapers.net
I have a blog centered on the same information you discuss and would really like to have you share some stories/information. I know my audience would enjoy your work. If you are even remotely interested, feel free to send me an e mail http://treatmentofcancer.online/
Thank you. Just what I needed.
It's absolutely shocking – it gets worse every day and with continued advertising people constantly get sucked in 🙁
Sim@Sim's Life x
They are just ridiculous aren't they? I also hate those companies that offer people an object for next to nothing for a weekly fee, but by the time they have paid it back, they have paid a stupid amount…
Wow that's crazy – getting a loan via text. It's so easy these days and I don't think anyone thinks about paying it back. I try not to get loans or credit for anything if I can. It's so easy to get out of control.
I think it's terrifying the way pay day loans are allowed to advertise these days. I agree, there really needs to be some stricter regulations around the advertising of these types of loans. The way they are billed as the friendly, no-fuss solution to serious financial problems is very worrying. I've got to say, pay day loans are my "line in the sand" when it comes to adverts on my own blog.
It must be a desperate situation if people use these kind of companies.After me and my ex husband split i went straight to the C.A.B to help me with the debts he had occurred.They were very helpful with contacting companies and getting my debt repaid back in manageable chunks.
These pay day loan companies make me sick to the stomach. On one side I think that if people are stupid enough to let themselves get into that debt then let them do it but on the other hand I think these companies pray on people who are desperate positions who will do anything to get there hands on money to feed themselves/fix their car/pay bills etc. when people are this desperate they make rash decisions. These companies are clearly aiming at people who have difficulties managing their money as they throw the whole ‘don’t worry if you have bad credit’ gag and these are the type of people (I do speak generally) who will find it difficult managing their money enough to pay back on time or consider the extra amount they have to pay back on top of what they have borrowed. So this throws them even more into debt so they are left desperate again and the cycle starts over. Sorry for the rant, I just also feel strongly about this subject!