On the subject of interest (Jans Post) I read in article the other day by Martin Lewis. He compared the interest of one of these short term loan companies to a mate lending you a tenner. Would you take out a short term loan with a 4000% plus APR? No, of course you wouldn't, however, if your mate lent you £10 until payday then when payday arrives you buy him a pint as a thank you, the interest on that equates to about 143,000%.
Now, where's the number for that pay day loan company? (JOKING)
Have to say that when I've borrowed money from a friend I just pay them back what I owe!!!
Being a cheapskate they wouldn't get a pint out of me!![:D]
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi
If used correctly they can be useful and can save on bank charges that work out to an even higher APR.
The problem is that people can take out multiple pay day loans and can't ever get out of them, this is an area that needs action from the Payday loan companies themselves, maybe an exchange of information to stop this from happening
Regard
