Posted on 01/05/2012 2:48:48 PM PST by Cardhu
Around one million Britons have taken out a payday loan to pay their mortgage or rent over the last 12 months, a survey reveals. It highlights the financial squeeze facing workers who are being pushed over the edge by soaring household bills, rising taxes and paltry pay rises, or pay freezes. The report, from the homeless charity Shelter, said a further six million people are being plunged into debt in other ways in order to pay these essential bills.
They are using unauthorised overdrafts, personal loans or credit cards to pay their housing costs - rather than face being evicted from their home. Campbell Robb, chief executive of Shelter, said: ‘These shocking findings show the extent to which millions of households are struggling to keep their home.
He said a payday loan is ‘a totally unsustainable’ way to pay for basic bills, such as a monthly mortgage repayment, because they can ‘quickly lead to debts snowballing out of control’.
Mr Robb added: ‘It can lead to eviction or repossession and ultimately homelessness.’
These controversial loans are meant to tide people over with a small sum of money - perhaps £100 - for a short amount of time until their next pay packet arrives.
In practice, with interest rates as high as 4,000 per cent, it can fuel a spiralling debt problem for people who simply see their debts get bigger and bigger.
(Excerpt) Read more at dailymail.co.uk ...
The fact that most are American Companies has been removed from the article as an update.
” one million Britons?”
they have that many still in the private sector?
You can make cash from medical research.
It’s not as bad as it sounds. Sometimes.
>>You can make cash from medical research.
It’s not as bad as it sounds. Sometimes.<<
Sperm testing?
A million Britons take out payday loans (4000%) to help pay their mortgage costs in just one year
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BS
What they are doing is taking out payday loans so they can pay mortgages AND blow cash on crap they can’t afford...like drugs and gambling.
How did loan sharks suddenly become legal to operate in the USA and UK? Maybe they know someone in government.
Should we be elated that the Wall St bankers who played a big part in this economic collapse are doing just fine, with the help of crooked pols, our tax money and their cronies in the Federal Reserve passing out free money to invest for even their wives? This article demonstrates the gross manipulation of the system for the benefit of a few. “Inside Job” the non-partisan movie was a wake up call.
The games the insiders play are not at all about risk, reward, capitalism, creating innovation, expanding means of production and creating a robust economy. They on WS are a casino structured to suck in new money from the street that will be used to create wealth, power, and the means to influence government and expand cronyism for the few. It is a sanctioned private club (even the wives get to play) that gets our Federal Reserve dollars to invest globally at our expense, while conservative responsible savers that want no part of their Ponzi scam are trashed.
A number of states, as well as the US military, have placed maximum annual percentage rates on payday loans, which have effectively outlawed the service. Legitimate payday loan "stores" publish the APRs, it's in no way hidden. In fact, the application document practically screams the high APR, how much is being loaned, and how much must be paid back, and by what date (usually 2 weeks, which is why the high APR is required.) Another reason for the high APR is often the borrowers have a less than stellar credit history.
Here's why the incredibly high APRs... Let's say you need to borrow $500 to have your car fixed. And let's say the state has set a limit of 30% APR. If the loan had a term of a fully year, you would have to pay back the original $500 plus $150 interest. But the term is NOT 1 year, it's 2 weeks. A 30% APR for a 2 week loan would mean the payday loan store would receive interest of $5.77. There's no way any business could afford to loan $500 for two weeks for less than $6. On the other hand, using a round number of 600% APR (I believe most stores are closer to 450% APR), would result in having to pay back a bit less than $116 plus the original $500 after two weeks.
The simple fact is that sometimes people need an emergency source of money, due to medical bills, or in my case, having the transmission in my car fixed. Unfortunately I lived in NY at the time, which outlaws "usurious" interest rates. So I had no choice but to go to a drug dealer for a loan, and actually had to pay back substantially more than what a payday loan company would charge.
Mark
In advance I don’t mean to hijack the thread.
Make no mistake our Christian ethics and values have been hijacked by a culture of boundless greed. Think not?
Google “ organ harvesting” . Legalized loan sharks are just an indicator of the beginning of our societal decline. Christians will give up their organs for others because of our value system of “it is better to give than to receive”. Not all cultures will. I have organ donor on my license.
Some would rather buy or take your organs but never give up their own. Greed is rampant in some.
Those with the most money and worst organs will pay any amount to hire a “harvester” to take your kidneys or liver or heart or lungs and give them to the one with the most wealth. This nightmare is coming to a town near you, and a corrupt crony judicial system and society will cover it up.
A good friend (claims to be conservative) said that “greed and avarice” is good, and all I could say in reply is ....huh? His core belief is that Christians are the fools and the money people are the smart ones. I disagree.
Excellent post!
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