It’s time this was made clear to those not mathematically minded. Emergency loan companies are not out there to help you, they are there to maximise their profits.
If a company quotes 198% APR, that means that even if you clear within a year; you are paying back twice the amount of the loan ON TOP of the original amount = THREE TIMES.
So, for 1000 loan, a year’s clearance if you borrow at
198% APR = 2980 is your full repayment. Nearly three thousand!!!!
398% = 4980
598% = 6980
798% = 8980
These guys are worse than loan sharks. A loan shark cannot legally force you to repay crazy amounts and can only bully you to repay mad amounts to the extent that you go to the law to get them off your back.
These guys have the law on their side and can TAKE YOUR HOME: THROW YOUR FAMILY OUT IN THE STREET AND HAVE THE POLICE DO IT FOR THEM. You have NO easy comeback once you sign up.
GO TO WHOEVER you owe money to and talk to them if you are in financial difficulties. More times than not, they will be reasonable.
IF THEY ARE NOT, GO TO your local citizens’ advice, or legal aid facility, or benefit office and explain matters. The first two will point out reasonable ways of clearing debt and shine a light on the arrangement so that nothing shady or outrageous can be asked of you. The government benefit office may even give you a loan themselves – they have that option – which can be repaid at a very low percentage, and only as much as you can pay.
DON’T LET THESE SHYSTERS with the fancy ads/commercials put you in a worse position than you are already.
TO BANKS. If you are wondering why the vast percentage of people would not spit on you if you were on fire in the street, or why they’re not too concerned if you get robbed – this is it. You refuse decent people loans at reasonable rates, forcing those who are not aware of the alternatives – or those who are desperate – into the hands of these legalised highwaymen.
TIME for you to get real too. At the very least, advise the desperate of their alternatives, and not just with leaflets. One phone call by you to, say, an advice centre on their behalf could prevent a suicide and boost your PR profile. Think about it.