I am sure we have all seen the adverts for payday loans and wondered why someone would put themselves in that type of trouble.
I found interest rates going from 200% all the way up to 1500% and you have to wonder why someone would use that facility, hopefully I can try and help.
When I was younger I was in £20,000 worth of debt, and I didn’t go to university, it was all spent on drinking, smoking, going out, and I did have a lovely time spending all the money.
It just wasn’t much fun when they wanted to pay it back, so when the banks cut me off, I had three credit cards totalling about £15,000, a £3000 overdraft and £2000 car loan, that was a bit of a bummer, but because I couldn’t or wouldn’t manage my finances I then started getting payday loans.
Now I am probably different from other people because mine wasn’t spent on anything other than the fact I couldn’t manage my money.
Now I see people using them because they are desperate to feed their families and have run out of everything to sell and suddenly have found that they have no money left on the gas meter on a Sunday at 5pm and no way of getting the money. It is very easy to tap in your name and bank details and suddenly you have £100 at 1256%
And suddenly it spirals out of control. I am very lucky that we have our finances under control now and if need be I have a great family who in an emergency will let me borrow a bit of money, but I think I am one of the rare ones.
The problem is we live in a world of keeping up with the Jones’ instead of thinking actually no, I dont need that 56″ TV at 5.56 a week for the next ten years, I could save the £5.56 and pay outright for the TV in less than a year (I maybe making these figures up)
But as I was thinking of this post, a thought dawned on me that I vaguly remember being bombarded with texts and calls when I got a payday loan, and I was thinking well, hang on I wonder if they still do that. They do
I investigated it and put my (sort of) details into a loan application, this was 4 days ago
20 phonecalls and 44 text messages later,
And to put this into context I use my phone to ring my partner and my mum (or rather my son does) thats roughly on a daily basis and then my dad and one of my sister’s I speak to when I speak to, all in all after an experiment when I changed my phone I couldn’t be arsed to transfer the numbers. I have 9 phone numbers in my contacts, I think this shows how often I use the phone
I have no idea what they want apart from to tell me that my loan has been approved. I could get up to £5000 and its all from different numbers as well.
Imagine being so desperate you have had to get one of these and then spending the next four days (possibly more) bombarded by offers of more loans when all you wanted to do was pay for a little bit of gas but had to take £100 because that is the lowest they offer. I know there as been some regulations put in place but there needs to be more done. There is no way I believe that at 1am someone is going to do a credit check, approve me and send money in 15 minutes
And as I write this yet another phonecall.. I am starting to think this experiement was a mistake.
If you do find yourself in trouble