Sadly, they're far more often used to just pay bills that can be anticipated.
Most people who would be responsible for any repairs to a boiler would have access to much cheaper ways of borrowing.
Like a credit card for short term borrowing.
Yep, otherwise known as a rip-off.
--snip--
Yes. In reality, pay day loans ain't much used by those shown in the TV ads.
That should be true of any amount borrowed over any time period.
For some a short payday loan is all they need, quick and easy unlike applying for other loans which might work out cheaper. I saw one saturday night for 1325% which seems a lot but might work out cheaper than going for longer term loan that appears cheaper. The problem comes when they aren't paid back in time and as mentioned roll-over takes hold.
That advert annoys me. Why can't the thick woman tell her son to wash with a kettle?
If instead of paying £10 a week on a loan they'd put the tenner in a s avings account at the start of the year they wouldn't have to borrow in the first place.
The TV programme Life and Debt (BBC1 weekday mornings) had children putting money in savings accounts with a credit union. One child was saving for a computer game and another was saving for going to university. (No prizes fo r guessing which one was Asian.)
Owain
tand maths. I can't imagine a court upholding such rates but I'm not an exp ert on that.
1.008^365 = 1800%. That's nuts!NT
savings account at the start of the year they wouldn't have to borrow in t he first place.
of course. They're pitching precisely to the people that aren't responsible enough to save anything.
ng money in savings accounts with a credit union. One child was saving for a computer game and another was saving for going to university. (No prizes for guessing which one was Asian.)
I started saving when I was 6. No-one told me to, AFAICR.
NT
APR is not a very useful tool for this sort of loan. Whatever the APR, nobody has to pay more than twice what they borrow.
In article , Mark writes
Wasn't it the head of Barclaycard who got into trouble for saying that anyone who used one of their cards for along term loan was a bit stupid. Did a Ratner to coin a phrase.
I'd like to find the quote but no luck so far
NT
rstand maths. I can't imagine a court upholding such rates but I'm not an e xpert on that.
it's enough to put me right off ever contemplating it.
NT
savings account at the start of the year they wouldn't have to borrow in t he first place.
Well that's true.
ng money in savings accounts with a credit union. One child was saving for a computer game and another was saving for going to university. (No prizes for guessing which one was Asian.)
How much do you have to save per month to go to university ? Lets see £10 a week for a year is only £520, a years university fees alone are £9k, so that's neary 10 years of saving for 1 years cou rse. So by the age of 10 a child will have saved enough money for 1 years course it will take them another 10 years for the second years course. So they'll be 30 before they have enough for the 3 full course. Not very practicle for saving for uni.
Of course on kids saving they don't pay tax unlike an adult, so that's a sl ight insentive.
Or have no spare money to save.
True and you have neglected to include living expenses, which would add many years extra. And how many kids have £10/week spare money?
:
with a kettle?
n a savings account at the start of the year they wouldn't have to borrow i n the first place.
ble enough to save anything.
those are normally the same thing
te:
h with a kettle?
in a savings account at the start of the year they wouldn't have to borrow in the first place.
sible enough to save anything.
Not always some people just spend money without thinking what else it could be used for at the time or at a later date.
rote:
ash with a kettle?
er in a savings account at the start of the year they wouldn't have to borr ow in the first place.
onsible enough to save anything.
ld be used for at the time or at a later date.
ie aren't responsible, as I said
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