Australian Politics Forum - A Typical Payday Loan Has A Intrest Rate Of 400 PC

Annie Anthrax

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Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC
Reply #15 - Oct 31^st, 2011 at 11:42am

Equitist wrote on Oct 31^st, 2011 at 11:35am:

Poverty is such a vicious cycle - poor people chase their own tails and end up paying more for many things that others take for granted...

Being late to pay utility bills attracts escalating fees and/or interest penalties - as does making small cash and eftpos withdawals...

Pre-paid phone and internet contracts typically cost much more...

Poor people don't have the cashflow to avoid interest on credit accounts - and/or pay day lending...

Poor people can't afford to buy and store food and other groceries in bulk to take advantage of specials - and often end up paying inflated prices at local shops...

Many poor people (those who can afford a car in the first instance) top their petrol tanks in small increments and only when the red light comes on - often when petrol is at its most expensive...

Most poor people either cannot afford insurance at all - or end up paying more for the 'privilege' of paying by the month...

All of this cumulative financial disadvantage places untold stress on individuals and families...

!!

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Equitist

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Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC
Reply #16 - Oct 31^st, 2011 at 11:43am

gizmo_2655 wrote on Oct 31^st, 2011 at 11:28am:

Yeah, maybe.....but still, why would you keep getting the loans if you have problems making the repayments??

Sadly and ironically, even the wealthiest, biggest and best-resourced corporations and countries can fall into this debt trap - hence the current GFC!

So, it is unsurprising that those individuals who are most vulnerable and unskilled find themselves riding the debt merry-go-round just for the basics of life, eh!?

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Annie Anthrax Gold Member Offline Posts: 7062 Gender:	Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC Reply #17 - Oct 31^st, 2011 at 11:45am Quote: Yah, but let's not forget stupidity either.... Are poor people generally stupid?
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Equitist Gold Member Offline Australian Politics Posts: 9632 NSW	Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC Reply #18 - Oct 31^st, 2011 at 11:52am Annie Anthrax wrote on Oct 31^st, 2011 at 11:45am: Quote: Yah, but let's not forget stupidity either.... Are poor people generally stupid? Hmmnnn....payday lenders are probably entering into unfair contracts with those who are.....
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gizmo_2655

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Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC
Reply #19 - Oct 31^st, 2011 at 12:01pm

Annie Anthrax wrote on Oct 31^st, 2011 at 11:45am:

Quote:

Yah, but let's not forget stupidity either....

Are poor people generally stupid?

Some are, some aren't....
For example, I'm currently living on $255.00 per fortnight (after rent, bills etc).....usually works out to be about $155.00, if I overdraw my bank.....
But I STILL wouldn't get that many 'payday' loans......

it works out to be 21 loans per year, out of 26 fortnights per year over 3 years...

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"I just get sick of people who place a label on someone else with their own definition.

It's similar to a strawman fallacy"
Bobbythebat

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gizmo_2655 Gold Member Offline Australian Politics Posts: 16010 South West NSW Gender:	Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC Reply #20 - Oct 31^st, 2011 at 12:03pm Budgeting is the thing...
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Annie Anthrax Gold Member Offline Posts: 7062 Gender:	Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC Reply #21 - Oct 31^st, 2011 at 12:03pm And don't you think banks make enough money without charging extra fees to people who are struggling and have to overdraw? I'm sure you don't do it for the fun of it. It is a system that targets the vulnerable.
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gizmo_2655

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Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC
Reply #22 - Oct 31^st, 2011 at 12:08pm

Annie Anthrax wrote on Oct 31^st, 2011 at 12:03pm:

And don't you think banks make enough money without charging extra fees to people who are struggling and have to overdraw? I'm sure you don't do it for the fun of it. It is a system that targets the vulnerable.

Ahh but it's NOT a 'bank loan' though...A bank loan would have been at the 'standard' rate of 6% or 8%....providing he could meet the loan criteria....

It's a 'storm in a teacup' deal....He (fairly) obviously couldn't get a normal bank loan, so he went to the higher interest sector....who's fault???

As for me, I know, going in, that the interest chharges are somewhat punitive, but I accept that, and don't blame the bank, I blame ME....

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"I just get sick of people who place a label on someone else with their own definition.

It's similar to a strawman fallacy"
Bobbythebat

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Annie Anthrax Gold Member Offline Posts: 7062 Gender:	Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC Reply #23 - Oct 31^st, 2011 at 12:11pm I was talking about the fees you say you are charged when you are forced to overdraw your account...
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Sir lastnail

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Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC
Reply #24 - Oct 31^st, 2011 at 12:12pm

gizmo_2655 wrote on Oct 31^st, 2011 at 11:19am:

Sir lastnail wrote on Oct 31^st, 2011 at 11:13am:

gizmo_2655 wrote on Oct 31^st, 2011 at 10:55am:

Well, in order to get those loans, he must have been able to prove that he could afford to repay them....

If he said that he could, when he actually couldn't, how is it Cash Converters fault??? ( other than not realising he hadn't repayed the last one)...

what is the proof then ??

Have you ever applied for a loan, either short or long term, nails??

The first question they ask is "can you afford the repayments?"......the standard is that the repayments cannot be more than 1/3 of your income....

Even the Centrelink advances use that formula......and the rate is $75.00 per month on a $500 amount, repaid over 9 months (which means you repay $675.00)

Granted, the company shouldn't have allowed so many......if the situation is THAT bad, he must have defaulted on at least some of the earlier ones, or had trouble repaying them....

And that guy would have said "sure I can afford the repayments. Being on a disability support pension means that I can have a holiday each week" !!

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gizmo_2655 Gold Member Offline Australian Politics Posts: 16010 South West NSW Gender:	Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC Reply #25 - Oct 31^st, 2011 at 12:12pm Annie Anthrax wrote on Oct 31^st, 2011 at 12:11pm: I was talking about the fees you say you are charged when you are forced to overdraw your account... Yes, I'd love them to be lower....but they aren't, so my fault, my problem...
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Equitist Gold Member Offline Australian Politics Posts: 9632 NSW	Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC Reply #26 - Oct 31^st, 2011 at 12:13pm gizmo_2655 wrote on Oct 31^st, 2011 at 12:03pm: Budgeting is the thing... Ye and me know that this is good in theory but bloody difficult in practice - especially when funds are limited and basic living costs are so high... More so when there's kids involved!
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gizmo_2655

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Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC
Reply #27 - Oct 31^st, 2011 at 12:13pm

Sir lastnail wrote on Oct 31^st, 2011 at 12:12pm:

gizmo_2655 wrote on Oct 31^st, 2011 at 11:19am:

Sir lastnail wrote on Oct 31^st, 2011 at 11:13am:

gizmo_2655 wrote on Oct 31^st, 2011 at 10:55am:

Well, in order to get those loans, he must have been able to prove that he could afford to repay them....

If he said that he could, when he actually couldn't, how is it Cash Converters fault??? ( other than not realising he hadn't repayed the last one)...

what is the proof then ??

Have you ever applied for a loan, either short or long term, nails??

The first question they ask is "can you afford the repayments?"......the standard is that the repayments cannot be more than 1/3 of your income....

Even the Centrelink advances use that formula......and the rate is $75.00 per month on a $500 amount, repaid over 9 months (which means you repay $675.00)

Granted, the company shouldn't have allowed so many......if the situation is THAT bad, he must have defaulted on at least some of the earlier ones, or had trouble repaying them....

And that guy would have said "sure I can afford the repayments. Being on a disability support pension means that I can have a holiday each week" !!

Quite possibly...Some people DO make those statements....either through ignorance or intent...It happens....

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"I just get sick of people who place a label on someone else with their own definition.

It's similar to a strawman fallacy"
Bobbythebat

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Annie Anthrax

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Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC
Reply #28 - Oct 31^st, 2011 at 12:17pm

Think about what you're doing. Do you see how ironic it is that you consistently defend a system that is completely ripping you off? The overdraw fees and the high interest short term loans are the straws that break the backs of families.

People that earn massive amounts of money making decisions to actively target the vulnerable. How can you defend that? And even accept blame?

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gizmo_2655

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Re: A Typical Payday Loan Has A Intrest Rate Of 400 PC
Reply #29 - Oct 31^st, 2011 at 12:21pm

Annie Anthrax wrote on Oct 31^st, 2011 at 12:17pm:

Think about what you're doing. Do you see how ironic it is that you consistently defend a system that is completely ripping you off? The overdraw fees and the high interest short term loans are the straws that break the backs of families.

People that earn massive amounts of money making decisions to actively target the vulnerable. How can you defend that? And even accept blame?

Simple.... I 'do' occasionally go over my budget.....as do most people....Buying more than I can actually afford is no-ones fault but mine....

As with any other 'error', how can it be anyone else's fault???
If I choose to buy a case of beer or a extra pack of smokes....why should I blame the bank??? No one 'forced' me to do so....Personal responsibility is a valid idea....

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"I just get sick of people who place a label on someone else with their own definition.

It's similar to a strawman fallacy"
Bobbythebat

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