Pay Day Loans Do you think that these are good or bad for people with low credit
By oldchem1
@oldchem1 (8132)
May 11, 2010 4:43am CST
Pay Day loans are fast becoming big business here in the UK, and no doubt in other countries around the world.
These loans are short terms loans - a cash advance on the borrowers wages or salary.
They are intended to cover emergency situations that may arise and seem to be aimed mainly at people with a bad credit history.
What worries me is that if these loans will eventually make people worse off in the end, do they lead people into the risk of a never ending circle of borrowing to pay back the loan?
Have any of you had any experience of these loans and did they help you or get you deeper into debt?
1 person likes this
4 responses
@bashesbc (12)
•
11 May 10
My thoughts on any kind of loan are that they are only really safe for people who don't really need them. If you borrow on the strength of your wages, you are going to need to borrow each month. My advice would be to save for what you need, and avoid paying massive interest on a loan. I have learn't the hard way and I am still paying years later.
@hvedra (1619)
•
11 May 10
Instead of going to what amounts to a loan shark in disguise, people could and should look at forming or joining credit unions, which are not-for-profit but can provide loans.
The rates charged by a lot of the companies that have set up are very high and they prey on the worst off low-paid workers. I just looked at the rates and the first one I found - a very slick and professional looking outfit are charging (you might need to sit down and have a stiff drink ready) 1355% APR. No, that isn't typo One thousand three hundred and fifty five percent annual percentage rate.
Usury at it's worst.
1355% 
@randylovesdar (4932)
• United States
17 Jul 10
I think that payday loans are horrible and the interest rates are aweful. I had a friend of mine who used to use them and all they did was get her into trouble. You borrow so much and then with the interest you are paying more than what you borrowed in the first place. I think that they are out to get money from you and rip you off.
