We live in a victim culture and it’s now reached credit and lending. A third of Wonga’s customers are to have their debt wiped out because they couldn’t pay it. Those who could, and did, will receive no such generosity. Does that make sense? To the lending money industry it does not and klaxons will be screaming in pain. If people borrowing money are not responsible for their debt then capitalism could collapse. Debt, rather counter intuitively, is good for business. We need to borrow to buy nice things to keep people in employment to keep it all ticking along nicely. The biggest companies even stack debt on to their book so it’s cheaper to pay the interest on that than the corporation tax on profits. Manchester United’s owners perfected it. This is why we need pay day loan companies as wages fall and tax havens are full to bursting. The rich do not want to pay any tax anymore.
Wonga was the emergency band aid, the last lender of choice. But not no more. It looks like the biggest payday lender of all is about to go under. It didn’t exist before the financial crash. They were essentially legal crooks (did I just say that) in all but name at the height of the recession that naturally targeted the poorest in society who simply couldn’t get money anywhere else. But now the recession is over the banks want their customers and business back and so no need for Wonga. The government has forced Wonga to annul 333,000 customers’ balances and stop the interest on 30,000 more, a £220 million write down. It shows just how many people are suffering out there, welfare cuts and sanctions being replaced with payday loans. It’s not quite clear if those 333,000 accounts will return to zero and be closed down but the regulator adjudged the lending was reckless and made to people who simply couldn’t pay it back as the crippling interest rates kicked in. As I say. We are all allowed to be victims today and that is being legislated against.
Wonga couldn’t resist the profit margins and simply leant out pretty much every penny coming in to just about everyone to make more and more. If they didn’t then the other ones would, exactly what the banks did to cause the credit crunch - even the banks dare not charge these interest rates. It was only ever the case that the people using these payday loans were mostly people who couldn’t pay their every day bills with their paycheques, and so no way to pay down the loan. Why else would you take one out? Wonga and co simply filled the lending gap, an incredible 38% of their customers in debt for more than three months. Other payday lending firms are next in the crosshairs. Shame the governments have not done this with the utility companies.
They used those puppets of cuddly old folks so they could advertise on day time TV, when the unemployed were home alone with their kids and debts. Who doesn’t want the best for their kid? What we didn’t see is those little old ladies counting the money in the back room cackling away.
You could move the innovative bar along on the website screen to the amount you require, which would then show you how much you would pay back and how long to. That was not the case. The accumulative interest was not added into the equation and so the debt quickly stacking up. The Wonga website made it very easy to borrow and very hard to pay back. They claim they did checks on credit worthiness and employment stability but clearly not. If they could get more back from money lent to the unemployed then job done. They were always prepared to write down debt. That was food coming out of kids mouths.
The website today is very different. They also had to pay a huge fine for sending out fake solicitors letters from bailiffs and so jobs have gone and the website not as slick. If you want the maximum £400 on offer and you don’t pay the whole lot back after the maxim 30 days the total bill is £555 on day 31. That’s £155 a months interest. But here is the clever bit. A smaller loan of say £50 you pay back higher interest rates over shorter lend periods so you naturally take it for longer. But if you miss the date and can’t pay back (hence it being pay day loan) the full amount they offer you another small loan on the same slider to avoid further action. Ten mini loans of £40 can add up to £22 interest and fees for each loan.
They say you must have a bank account and card to get a loan. They don’t want to lend to people who have no way of paying the debt online. I have not had the need to use a payday loan as yet but the way the Tories are going it could well happen. I try to get as many credit cards as possible in case of emergencies and would advise you guys to do the same. If you do chose to use the service now it’s probably the best time as you don’t have to pay back the loans by-the-looks. And when they go bust you definitely won’t.
The website is basic and stripped down from when I last looked at it. A mate wanted to use the service and trusted me to check it out. I advised him not to take a loan out for £200. I helped him to get one of those high interest credit cards instead and now he is ok. Even at 40% annual interest with Luma that’s just 100 over a year to pay back, with all year to pay it.
If you are looking for a <a href="http://www.lifehousefunding.com">Personal Loan</a> there is no better place than Life House Funding. They will match your credit profile with the lender than gives you the best chance of approval at the rates and terms you can afford!They have a full staff of friendly representatives that are always there to help.
I am writing about a payday loan company that i found last week on the internet. It is a company that offers short term quick cash loans upto £750. I was a little short on my rent this month due to an unexpected dentists bill, so i had to top up my money quickly to pay my rent on time. My only option was a payday loan, I have read awful things about payday loan companies the main thing being the interest rates, but i gave it a go anyway. I applied online at http://www.midlandcash.com and was accepted for a loan straight away, i borrowed £300 and the money went in to my account the very same day, so i was able to pay the rent on time. i only have to payback £375. Not bad really considering my credit score. If you have no other option it might be worth a go.
My review is abour provident personal credit.
As some of you may already know provident personal credit are a home lending company who lend to anyone no matter what your credit rating, this can be a good thing when you need a quick cash injection but a bad thing as it allows people already in debt to get further into debt.
To get a loan with them all you do is phone there office, the number is in the phone book, they take a few details then pass them onto an agent, this agent will come to your house do the paper work give you your cash and colect your repayments from you weekly.
There interest is high, it is £65 for every £100 you borrow but I find them useful at christmas time each year and have a loan that I can pay back over the next year at a very reasionable rate.
Repayments are £3 a week on every £100 you borrow
Provident is a great company if you have poor credit and need cash fast
Have you ever thought about getting finance for a car and saw the Wecome Car advert on TV. If so and you are still thinking about it please take this advice, they are a bunch of thieves in suits. They show you the cars, you sign for them then you find that there are extras on the contract that you knew nothing about. I found that they had charged me £300 for an "optional extra" that had never been mentioned previously. Then the car was faulty and infested with ants which they refused to sort. I was therefore out of pocket for that and then the car was recalled from the garage for having a maufacturing fault in the brakes. Again I got no help from the company with this. Instead they decided that they would increase my term time for repaying to allow me to recober the costs I had encurred. This was ok until I realised that I was pying more back than originally signed for and more than 3 times the value of the car. To make matters worse they tried to get me to sign a blank contract and they would then fill in the blanks and send me a copy. I refused and then I got chased by them with this new contract which I never signed. They had forged my signiture from another form I signed and had the audacity to send me the "new" contract. This is all now being investigated.
They also neglect to tell you that Welcome Car Finance do not provide the finance it is in fact their Mother company Welcome Finance so this makes it easier for them to abuse your trust and harder foryou to get out of the contract when you find you have been misled.
So if you are thinking of financing a car through them then please try elsewhere first as I'd hate that someone else goes through the same aggrevation as I have just because they seem the easiest option.
Please stay well clear of PROVIDENT loans. I was a single mum and first took one out when my first daughter was a couple of months old. I thought it was an ok idea as I could pay it back weekly with someone coming round to my door to collect money. This was fine to begin with until they decided they wanted me to take more. One point I had the manager round to get me to take one and they put so much pressure on you that you cave in eventually. All you see is the big wad of cash they are offering and you just think of everything you can do with it. The repayments got a bit much for me but I carried on as best I could and then they just stopped coming to my door. I got a couple of letters saying that they could never get me but I phoned and said I am usually in. Yet when the manager came round he always got me! Don't think the agent could care less.
A year later I moved house and had actually completely forgotten my loan which I had to repay. By this time I was living with my partner and was 7 months pregnant. The hassle really started, I received a letter sting I owed them a lot more than I actually did but I couldn't remember the figures. I phoned them and they were awful, calling me a liar, trying to put pressure on to me so they thought I would admit to that much debt. I was in tears so many times and the stress did me no good. They claimed that they had taped phonecalls admitting that I had that much debt but when I said I wanted a copy they refused. I phoned back the next day to speak to someone to get a copy and they said they didn't record calls.
In the end I got advice from a debt company and sent them a recorded letter asking for a statement proving that I owed them that much and copies of the statement which I signed. Have they ever been back in touch? Of course they haven't!
They are a bunch of cowards at the end of the day and preying on the most vulnerable!
If you are thinking of getting a loan think twice it can truly mess up your life.
I took out a £10 000 loan for pure indulgance I thought it would be a good Idea to pay off my credit cards buy a yearly train ticket to get to work go on holiday decorate my flat buy some new furniture and have some new clothes and just generally live it up.
The money only lasted for about three months. I takes three years to pay off the loan. When you a loan out you think yes I can afford £310 a month but when you don't have many outgoings of corse you can afford it but as soon as you want to buy your own place or save up for a wedding you can't afford to and it sucks.
So don't take a loan out unless you really need to save up you will be better off in the long run.
I took out a lon last year for £250, over 12 months with an interest rate of 177% apr and 55 weekly payments of £7.50. I am on a low income and struggled to get accepted for credit elsewhere, a quick search of loan comparison sites showed that provident was my best option. I'd always vowed to stay away from the high interest loans as I'd seen many people struggle with repayments but following a tough patch financially it seemed the only way to replace my washing machine.
The application process was really easy. I filled in a form online and was later phoned by an agent who arranged to come round the next day. I had to sign a few forms and show two forms of proof of my identity, I showed a bank statement and utility bill. The same agent came round the next day with the money.
The agent is a friendly lady who comes round the same time each week, I have missed a couple of payments due to not being in when the agent calls but she has been happy to accept double the next week. I've started to pay £10 a week instead of £7.50 to pay a bit faster and can miss a couple of payments if I'm not in etc without worrying. Payments are recorded in a book the customer keeps so you can easily see how much you have left to pay.
The interest rate is obviously really high, but provided you dont take out more than you can afford, it can get you out of a hole. I have no intention on taking on further credit from the company in the future and getting myself into a loan trap, but they are honest so you know what you are getting into when you take out the loan. I'm saving more this year so that if future appliances break down I can dip into savings and not need to borrow!
Wholst looking for a small unsecured loan recently a company called greenwoods personal credit kept popping up in my searches so i decided to take a look and immediatley decided against it.
Greenwoods personal credit work on a very similar lines to provident offering small unsecured loand to almost anyone and offering a door step collection service.
Although this does mean you get somewhat of a personal touch as the same agent who comes out to your home to do your loan comes to collect your repayments each week the 258.6% apr no thats not a typing error they realy am charging 258.6% interest on what ever you borrow, kink of puts you off the idea though.
High street shopping vouchers of £100 will cost you £140 to pay back so work that out over £1000 will mean you pay £1400 back.
This company prides it self on helping those who cannot gain credit any other way, surely they mean by robbing the unfortunate because after all you wouldnt pay these sort of interest charges unless you were absolutley desprate would you?
I applied for my aa loan to buy a new car in 2002. It was the lowest rate I could find as I was not a homeowner at the time.
The service was quick and efficient. However.. the check was sent by courier and I was not informed of the costs. It took time for the cheque to clear so I have no idea why they cannot do it by bank transfer.
I automatically had GAP insurance added to the loan. I did not need this as I was puting down a substantial deposit on the car and paying over 3 years. I got charged £199 for this and I did not know I had it until the paper work came through.
Due to personal circumstances I was able to pay off the loan early in March 2004. However, I did not get a refund on the interest that I really should not be paying.
This is the difference between car finance from a garage and a personal loan. Car finance would reduce the interst due as it was not over the full term.
I think now you can get personal loans which do not charge you the full interest as the FSA has ruled that it is unfair to charge interest for a term which is not full.
Another annoying thing about the aa was I kept getting leaflets throught the door asking me to refinance the loan over a longer term so I can borrow more. The called the house as well.
the three month holiday offered is an opportunity to charge you interest for a further three months on the full loan amount. It is not free. The term you are taking the loan over is 3years and 3 months!
If someone asked me if I Would recommend the AA for a loan I would say yes. Thier rates are very competitive but I would warn them about the hidden costs.
This is op is to be read in conjunction with my Cahoot op for anyone who needs to know a bit about loans in general before reading about a specific product. This op can be ignored by anyone who just wants to know about the Cahoot Flexible Loan, I have written a seperate op for this. ~~~~ BACKGROUND ~~~~ Is it any wonder that the majority of us are in debt? Credit cards, loans, mortgages, store cards, you name it, the chances are we all owe money so someone. The only thing we can really do, apart from not take credit out in the first place is try and get the best deal we can. This might not always mean getting the lowest rate; we have to make sure that the product is also suited to our needs. For example, there is no point in taking out a 3 year loan when you may be planning to have a baby in 18 months time, you would want to have the loan paid off by then without incurring any penalties for early repayment. The same goes for borrowing money against a car that you plan to replace 2 years down the line. What can we do to match the product as near as possible to our needs? The best thing to do before you start looking around for any type of finance is to know exactly what you want it for and how much you need to borrow. This may sound simple but I have known people to go out and get a loan without any specific purpose, the money might then be spent on holidays, clothes or whatever takes the fancy, they are soon left with nothing to show for it. There is nothing wrong with borrowing money for holidays but I think you have to be very disciplined and realise that once the holiday is over you are still left paying off a debt. If you make a list of what the money is for, research how much you need, how much you can afford to comfortably pay each month, how long you are likely to want or be able to pay the loan over (remember things like moving house, having children, finishing fixed term contracts, re
tiring etc) what is important to you, i.e. flexibility to cease payments in times of hardship or getting the lowest rate and paying it off over the quickest length of time. You need to match the features of the product with the benefit to you. If you have access to the Internet it makes life much easier as shopping around for good finance deals is less time consuming and you are not as pressured to make an instant decision. Just remember that if you do actually apply to be accepted for credit on line you will still be subject to the normal credit checks. OK, assuming you wish to apply for a personal loan, i.e. one that is not secured on your home or any other property. This is different to a mortgage or a secured loan as the lender has nothing for security against what you borrow. Personal loans tend to be for smaller amounts and over shorter periods with higher interest rates than mortgages, this is because there is more risk to the lender. Most high street banks and even supermarkets now offer personal loans. Decisions can be obtained in minutes and it is pretty quick and painless. The better your credit rating/scoring the more chance you have of being offered a loan and you may even get a lower rate. In addition the rate offered is usually affected by the amount you wish to borrow. Surprisingly the more you borrow and the longer time you take to pay the lower the interest rate! This is partly down to the fact that short term loans of a small amount don't make much money for the lender so the more you borrow the more profit they are making, hence they can afford to offer reduced rates. Once we have decided on how much we want to borrow and roughly over how long you need to start comparing loans. Most loans advertise an APR, this means the annual percentage rate, and this is not always the same as the actual interest rate. This may be because they have a special offer on for the first few months; they have to average it out over a 12-month p
eriod to make it fair to the consumer. It would be deceiving to advertise a loan of 3% if it only applied for the first 3 months and then it shot up to 15%. Loans that have the interest calculated daily are usually better value than those that are calculated monthly. This works because you only pay interest on the amount you owe at that point in time, therefore as soon as a payment hits your account it reduces your balance and subsequently reduces the interest due. Always use a simple comparison chart by putting in the amount you wish to borrow and the term you wish to pay the loan over. It will come up with a monthly figure and an APR, remember to check THE TOTAL AMOUNT PAYABLE. This is where you will really see the difference, just because a loan is offered at a low rate it doesn't mean that it will always be the best over the term of the loan. Also look out for added extras like unemployment/accident cover as some companies add this to the loan and you will pay interest in this to! Loans can either be fixed where you pay an agreed amount each month based on what you borrow, this will never change and the interest rate will remain the same until the loan is repaid. The downside with these type of loans is that there may be penalties if you wish to repay the loan early and if you suffer financial hardship you probably won't be able to reduce the payments. Or; flexible where they work similar to a credit card. You pay interest on what you borrow and can pay off the loan early and increase and reduce payments. The downside to this is that if you only pay the minimum amount off each month it would take years to repay. The Cahoot Flexible Loan is as above and that is what my next opinion will be about. If you are interested in a Flexible loan it should be of use to you, thanks for reading. p.s. the rating below are not applicable so i can't answer them.
The economy is based on credit. If you don’t have at least an average credit rating, you will find that getting approved for any type of loan, or credit card, will be very difficult - if not impossible. Here are some things that will determine whether you will be eligible for credit, and shows you what the creditors will be looking for. The first issue you can’t do anything about, it is your age. Yes, you could lie, but this could be a fatal mistake. With all the networking computer systems in use today, somebody, somewhere, probably has the true story. While it’s only one ingredient, if a creditor catches you in a lie, even if it’s just about your age, they aren’t going to trust the rest of the information you provide either, and you will probably not get the loan. The best group to be in is 24 to 64 years of age, under 21’s and over 65’s are less likely to get credit. If you are unmarried, most creditor’s think you’re a higher risk, and again you are less likely to get credit. If you are married, this counts as a bonus, even if you have been divorced, most creditors don’t care (but only if you have re-married). How many dependents have you? Unlike the government, who give you bigger deductions as your family grow in size, creditors think differently. The thinking is, if you don’t have any dependents you have no attachments, you could skip town, not pay off that loan. If you have up to three mouths to feed, chances are good you can’t pull up stakes and run away. More then three, you could get in debt over your head so you become a poorer risk again, but for a different reason. Where do you live? Do you own a property, rent, or just pay your parents some keep? These are pretty big factors, and can influence the creditors quite a bit. If you own a house, then the same as above, you are less likely to just run away. Moreover, you have the house to
put up against the loan. Where as if you rent, or even worse, just pay keep to your parents, this doesn’t show roots, and you could run off with the creditors money. How long have you held your present job? The longer the better. Less then one year at your present employment, again, doesn’t show roots. One to three years counts as a bonus, but anything over that really helps. In addition, is it an unskilled or skilled job? This helps to determine whether you could easily get another job if you become unemployed. The amount of hours you work, and your monthly income. Obviously, the more money you earn, the better! Most creditors will not loan you money unless you work at least 15 hours per week – otherwise there's not much chance of you being able to repay them. The actual amount you earn per month compared to the rating level the creditors give you, varies from creditor to creditor. It also depends on the part of the country you live in, your type of job, and many other factors. Are you currently in debt, and if so, how deep are you presently in debt? Up to a certain amount shouldn’t matter too much (depending on your earnings), but if your already in a lot of debt, then this is not a good factor. A very important aspect to all creditors is your previous credit history. Your previous credit history is your track record, and is a good indicator of how you should pay off debt in the future. All creditors belong to at least one credit-reporting agency, and this is where a lot of information is shared about your credit history. If you have a good credit history with the company you’re seeking the loan from, all the better. Of course they believe their own information more then somebody else’s. So if you paid off a loan with them with no problems, your chances of getting another loan are greatly improved. Having a saving and or checking account with a balance over £500 helps - if i
t’s not something you just opened a few weeks ago. (It should have been at least a couple years to do you any good.) All these are points that creditors will look at when evaluating you for a loan, and knowing these factors could just help the outcome of whether you get that loan of not. Tip: One way to build a good credit rating is to take out a small loan, pay it off quickly, take out a slightly higher loan, pay that off quickly as well, and so on. By showing you can pay off a debt quickly (even if it’s only a small debt), will give you a good credit rating, and the next time you apply for a loan, you will be able to take out a higher loan. I hope this advice helps you with your finances, but please note that it is only a guidance, and I don’t want anyone going out and getting married just because I said it will help them get a loan! P.s. When applying for a loan, shop around different creditors to get the right deal for you. And remember, there are many reviews of creditors right here on Dooyoo.
I went to Yes Car Credit today! At first they were charming, offering drink and a place to sit and chat in comfort. All this was just lulling me into a false sense of security. They took away all my documents (licence and credit cards included), and went to check my credit. They came back, without the documents announcing I could afford almost any car in the place. I asked the price of certain models and was told there was no standard price, then they waffled on in a way I couldn't understand about laying out £200 per month for 4 years to get a lovely car. I said no. They asked why and I said £200 per month was way too much as I was putting a deposit of £2000 down. They went away and came back and showed me 3 very shoddy cars that were in the £100 a month price range. I said no. Still my documents had not re-appeared. A woman came in and started on the hard sell. I felt as though she was an ex double glazing or time share seller. I stuck to my guns and pointed out that with an APR of 19.9%, and repayments of £100 per month and my deposit the car would be nearly £7000 for a 4 year old used one which I could get new for less. The woman then accused me of not wanting a car. To which I replied that I did and would be going to a showroom down the road. I insisted on getting my documents back. Funny how the caring attitude changed when they realised they weren't getting my money. I went down the road got a car a bit older for just £2995 in lovely condition. Not as new as I wanted, but better than the shonky ones I had been shown. Don't believe the hype they do not just want to give you a car where the payments are suitable for you, they have to be suitable for them!