Payday Loan business start-up advice

[mcgovern]

correct me if Ia m wrong but you still get charged for upaid d/d with a basic account?

I have used the tactic of canceling d/d's and payibg them at a later date. You do have to be careful with canceling insurances as you m,ay not be coverd.

 

[Vicarious]

Hmmm in theory sounds good but in reality you should never borrow money to pay liabilities. It could be the start of a downward spiral.

Oh come on, this is not structured finance, it is pay day loans for people who are maxed out on everything, cant get anything anywhere but at least they have a job. This is selling into an existing spiral.

 

[mcgovern]

Oh come on, this is not structured finance, it is pay day loans for people who are maxed out on everything, cant get anything anywhere but at least they have a job. This is selling into an existing spiral.

very true.

How many millions of people just pay their minimum balance on credit cards or take payment holidays on their mortgage. Its just another way of managing your debt.

Its easy to say dont borrow from loan sharks ect but do you think theses people want to be in debt?

The banks cant even manage their own debt.

Entire western countries cant even manage their debt

 

[Sage1974]

correct me if Ia m wrong but you still get charged for upaid d/d with a basic account?

I have used the tactic of canceling d/d's and payibg them at a later date. You do have to be careful with canceling insurances as you m,ay not be coverd.

HSBC basic account does not charge for DD bouncing. Plus they don't cancel the DD either.

Insurances are usually a priority however there is a cut off date so there is usually some grace period for paying late.

I understand that pay day loans are selling into an existing spiral. Where there is a need etc.

Still not the ideal way of handling finances though.

 

[mcgovern]

HSBC basic account does not charge for DD bouncing. Plus they don't cancel the DD either.

Insurances are usually a priority however there is a cut off date so there is usually some grace period for paying late.

I understand that pay day loans are selling into an existing spiral. Where there is a need etc.

Still not the ideal way of handling finances though.

Some insurance companies charge you for not paying on time, I.E. Rac £20

I may have to open a HSBC account.

Finance is not ideal full stop, but we have to use whatever means that are available sometimes.

As my mother said " beggers cant be choosers"

 

[Sage1974]

Some insurance companies charge you for not paying on time, I.E. Rac £20

If you speak to them ahead of schedule and providing it is not a regular occurance, the company will not have a problem waivering the fee that is inside their policy. You can always negotiate.

As my mother said " beggers cant be choosers"

Are you commenting that if you were in the same situation then you would be a begger that had no choice?

Beggers can ofcourse be choosers. There will always be another option. Whether they have the knowledge, balls, skill to do so wisely thats another story altogether.

Pay day loans are the scraping at the bottom of the barrel. Nothing inventinve, nothing new. It's one step away from being a loan shark. If you are temporarily desperate then fine, use them with caution. One off transaction! Problem is people with little willpower use them too often and it causes massive problems to their lives. Fantasic!!!

If you are a business owner who starts one then you are entering as has been said "a cycle that already exists" then it aint too hard is it to take advantage of the poor folk who really need guidance rather than advantage being taken from them. Start a business such as this then you have balls, thick skin and definately some Horlics to sleep at night.

Not my cup of tea but maybe for some.

I would rather think of other ways to make money than stooping soooo!!!

 

[oldeagleeye]

SAGE made a good point. As long as you make sure that your rent is paid most creditors & suppliers including utilities will give punters a 3 month payment holiday.

Personally I think these payday loan sharks are just that. Bottom feeders who exploit people when they think that they are drowning but they are not.

Having said that punters have to take some responsibility and yet how many do. Maybe these new austerity measures will teach them a lesson and if you take a positive attitude it can even be fun.

I remember when my wife and I were struggling when we first got married and on one occassion the electric ran out on the tuesday morn with no pay tell friday. We got by on candles and cold corn beef sarnies for nearly a week and living by daylight hours mostly those early morning walks and early to bed were great.

My wife getting into work early to smuggle me a cup of tea out didn't do us any harm either. A week later she got a substantial rise for dealing with a backlog import data at C & E.

Think credit holiday then not payday loan. Sorry OP but another vulture or shark we don't need.

Rob

 

[doi_swilkinson]

There is always a none borrowing solution to persoanl debt if you are working

Stefan

 

[Sage1974]

How many millions of people just pay their minimum balance on credit cards or take payment holidays on their mortgage. Its just another way of managing your debt.

This is not managing debt. This is digging a deeper hole. People who are paying just the minimum on their credit cards proberbly do not even have the disposable income to start getting rid of the debt. Minimum payments just about cover the interest.

So if there is no disposable income, then how can you expect them to pay a 2000 % APR on a loan?