I am of course talking about the doorstep loan companies that seem to target the poorest in our society. Today, I was informed by a friend that, yet another pamphlet had been put through the door from a loan company and it seems to be as soon as they lift restrictions these people are back circling the poor.
I will not name them but for a £200 loan, they want you to pay back £340 over 34 weeks. That is outrageous and no wonder so many people get out of their depth with debt as it is too easy to think it is only £10 and before they know where they are at……they are snowed under. When you think that they are stating it is 466.4% interest…..how do these people sleep at night?
On their website if you borrow £250, you pay back £425…… I thought the Government had outlawed this. The fact that they are registered with the Financial Conduct Authority means nothing really, as how can it be lawful to ask for such outrageous interest?
I read yesterday that those who had had loans with a well-known doorstep lender would not get back the expected repayments due to an over-the-top interest rate but would get mere pennies in the pound. If this is not prying on the poorest in society I don’t know what is, and it is always the poor they specifically target.
If you want to save up for something or need a loan then start with a credit union. They let you save and offer you such loan interest rates that it is quicker to pay back. All you are doing in taking out the high interest loans is making someone richer and let’s face it…..they are living off your struggle and I despise that the most.
The credit union ask that you make 10 regular deposits over 10 weeks and then you can borrow money. Their APR is 16% and I know it is still higher than a bank but some of the poorest people cannot get a bank loan and this is the cheapest option or do what some people do and that is save.
The best thing you can do is open a credit union account and save for that rainy day when the washer or dryer breaks down. You can apply straight away. Please do not go to these doorstep lenders who are only interested in signing you up to higher and higher debts and where it comes to the point that you won’t know where your money is going.
Do not feed the greed of those who do not know what it is like to struggle. A lot of these loan companies have been set up by someone who works in Finance or are a group of companies who want to squeeze the poorest in society for more money, after all they have an expensive live to pay for and think about it, whilst you are struggling to pay for a washing machine they are flying first class here, there, and everywhere and living life to the full. They do that based on the ridiculously high and almost criminal interest rates they saddle you with.
Do not feed their hunger for more and more as your money is hard to come by and if you struggle with a bank account then go to the credit union as they are manned by volunteers, and the person for the loan company is making money of you, everyone in the company is making money off you……. it’s not worth it.
Think sensibly and think financially and steer clear of these sharks….