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To be irritated by people on C4 news taking out payday loans

281 replies

SilverSixpence · 18/12/2013 19:31

I am Shock at people taking out loans to buy brand new fridge freezers and playstations from Bright House instead of buying secondhand/doing without if they can't afford it. 8 year olds are old enough to understand they cant have the latest thing if their parents can't afford it. If your kids are influenced by ads just turn them off! Isn't this basic common sense?

OP posts:
CustardoPaidforIDSsYFronts · 19/12/2013 09:34

if you have no money, and lets say your freezer with your food in just stops working and you have no money and all your food is going to go off and you have no money to replace it

how are you going to afford £50 for a second hand one?

how?

so you go to these places and get a brand new one, and you absolutley know that you are paying quadruple and more - but what else are you supposed to do?

there are no crisis loans anymore

what are you supposed to do?

mistermakersgloopyglue · 19/12/2013 09:35

There was a thread on here a few weeks ago from a woman that was in a lot of debt (loan and credit card I think) and she had just been given £1000. She was on here wondering if she should just spend it on 'treats' because using it to clear some debt seemed like a 'joyless' way to spend it Hmm

Some people have a really crap attitude to money, they just do. And it's not a lot to do with whether or not they are 'poor people'.

mistermakersgloopyglue · 19/12/2013 09:38

And I will say it again, I dont think anyone on this thread is begrudging people an essential like a fridge. But on the report that the OP is referring to, the family were referring to things like playstations/playstations games (at 40 quid a pop) and furbys as 'essentials' because their 8 year old daughter is 'so demanding' and they just couldn't say no to her.

And they are far from alone in their case.

CalamitouslyWrong · 19/12/2013 09:54

It isn't just poor or badly educated people who use companies like wonga.

One of my colleagues was complaining that his 20-something daughter (a graduate from a RG university with a decent job, and no rent because she still lives at home) had run up a £1500 debt from wonga buying fancy clothes. He was most annoyed that she didn't come to the bank of dad because he ends up paying these things and it would have only cost him £500 instead on £1500 (or something like that).

That, I would agree was definitely her fault. There was absolutely no reason to take a high interest loan to buy some clothes she didn't need. I'm not sure she'll learn her lesson though.

VampyreofTimeandMemory · 19/12/2013 09:55

Sorry SDTG you didn't, was getting mixed up - long day!

VampyreofTimeandMemory · 19/12/2013 09:56

Calamitously I have a friend who has gotten into that situation as well. Some people can't resist the temptation, very little to do with how much money they actually have!

GoldenGytha · 19/12/2013 10:12

Brighthouse can be a pain as well for encouraging people to take out more and more, so perhaps it's not surprising that the woman I saw was in so much trouble,

They used to ask me every week "Are you looking for something else, we've got X, Y and Z for only xxx££s per week" Followed up by phone calls to ask the same thing.

I always resisted, because I knew what I could comfortably afford each week, but I can imagine there are people who say "Sod It, I'm having that!"

Latara · 19/12/2013 10:32

One of my colleagues uses Payday Loans for her mortgage payments because she is desperate. She has a 2 bed flat, a lodger but just doesn't earn enough now to meet her payments.

SDTGisAnEvilWolefGenius · 19/12/2013 10:44

Thank-you Vampyre - sorry if I got stroppy.

I think budgeting has become more and more complex, as our lives have become fuller - there are so many more things to take into account than there used to be. I will be absolutely honest, and say that our family budget baffles me - different DDs and SOs going out on different dates, irregular items (such as the service and MOT for the cars) that need to be budgeted in etc etc.

But dh is really good with numbers, and has a budget, and a plan (and a huge spreadsheet) that keeps track of it all - he knows which fixed outgoings are going to go out within each 4-week period (he's paid 4-weekly, which adds an extra layer of complexity), and once those have been factored in, he divides up what's left between the various budgets (petrol, food, allowances, family fun, school dinners, clothing and money to savings (saving up so ds1 and ds2, who are at university, can carry on having the little luxuries they have become accustomed to - like eating and living indoors), and spending is recorded against those.

My friend's dad used to get paid in cash, and every week, he divided up his pay into a set of envelopes, marked for the different things that needed paying and some to the savings, with a bit put aside for emergencies.

I genuinely think this is a skill that needs to be taught - I know that many, many people teach themselves how to budget, and have no problems at all, but some won't - isn't it better that everyone is taught the basics in school? I wish I had been taught budgeting - looking back, the best that I can say is that I muddled through. There were plenty of times where there was too much month left at the end of the money - and too much term left at the end of the money, when I was at University as a mature student - but I never got to the stage of taking out loans to cover the essentials - but that was partly pure luck, and partly dh (then d-fiance) bailing me out - but I never had any sort of budget, and I look back at that with horror at how incompetent I was.

msmoss · 19/12/2013 11:02

It doesn't matter how much money you have spending money you don't have on things you can't afford is a stupid thing to do. Getting into debt can be the right thing to do in some circumstances but only if the repayments are manageable.

However, our entire economy is built around the need for people to spend money on consumer goods and this is facilitated through easy credit, if you're not switched on to this it can be really hard to resist the idea that nice stuff will make you happy because that is the idea we are sold continuously in all the tv programmes we watch, magazines we read and so on.

I used to be in stupid amounts of debt, I equated a £1,000 credit limit on a credit card as £1,000 in my pocket, I just thought life would be better if I had nice things. Ultimately, I was fortunate in that I had a moment of clarity and I was able to work hard and pay my debt off in a couple of years, it wasn't the most exciting time of my life but it had to be done. But whilst I accept responsibility for this situation I was also just acting as a product of my environment, getting into debt to buy nice things is now much more usual than saving for them.

I don't think there is anything that can solve this other than financial education and probably not just at school level, and definitely not just for people on low incomes.

PrimalLass · 19/12/2013 11:16

I may have shouted 'Gumtree' and 'Freecycle' at the tv several times while watching that last night. And I have a houseful of junk/second hand furniture and 12-year-old sofas.

losttinsel · 19/12/2013 11:19

I've been on benefits for over 10 years now so I know what it's like to have a very limited income, but I've never gone near Brighthouse or payday loans. The APR quoted in those places is always quite prominently displayed and they are shocking rates!

I don't have any help from family or maintenance from DC's dad, but it's still possible to budget sensibly and avoid getting into the payday loan trap. When I've had appliances break down I have used budgeting loans or charitable grants to get a replacement, and I've been able to cope without them whilst waiting for them to come through. It's meant shopping more frequently or washing clothes by hand/using launderette in the meantime but it's still better than getting locked into having to pay out such inflated prices over a long period. Budgeting loans are still available (I've just taken one out for Christmas expenses), and crisis loans have been replaced by loans administered by your council - my friend has just got one to for a new cooker.

I agree that some people do need to be taught budgeting skills, though I don't think I was ever taught them, I've just picked up tips from sites like Moneysavingexpert and used common sense really.

Lazysuzanne · 19/12/2013 11:45

Yes the economy is built on debt and if everyone was disciplined and refused credit in favour of old fashioned saving up for things, well I'm not sure what would happen.

It's much harder to be self disciplined and think things through carefully when you are stressed because you can't afford basic essentials and have no security.

Yes lots of people make bad decisions, lots of us do when we're up against it and can't think straight.

Peoples need help to choose options which further their long term best interests.
Instead they are at the mercy of loan sharks.

ephemeralfairy · 19/12/2013 12:09

Gumtree and Freecycle are great: but if you don't have a car and the person offering the item isn't able to deliver it then it isn't a viable option at all. And if you're on a low income then it is likely that you cannot afford to run a car. We got a washing machine off Freecycle a while back- had to pay £40 to hire a van with driver for an hour to pick it up and drive it 10 minutes up the road.

Oh and also watching Freecycle for things to come up and sending endless messages back and forth is time-consuming so if you're out working to earn money to y'know, put food on the table then it's not possible!! I forgot though, poor people are all unemployed scum on benefits so they've got loads of time on their hands

PrimalLass · 19/12/2013 12:12

But ephemeralfairy, surely all that is still preferable to paying thousands more than you need to, to Brighthouse?

Lazysuzanne · 19/12/2013 12:18

Where I live there are plenty of places selling second hand furniture and domestic appliances pretty cheaply who will deliver.

I know it's not free but it's cheaper than buying new on the never-never

mensachampion · 19/12/2013 12:29

Yes, LapsedPacifist, that's why I come on here totally unable to discuss the subject matter and immediately start ad hominem attacks. Oh wait, that was you.

msmoss · 19/12/2013 12:32

lazysuzanne yes things are harder to deal with when you're stressed but at the end of the day that's just an excuse, life becomes a lot less stressful when you take responsibility for your finances and live within your means and that doesn't just apply to people on low incomes, there are plenty of people living beyond their means at all income levels.

I think an economy not built on consumer debt would generally be a good thing on the whole, however the transition to becoming an economy not built on debt is pretty painful.

Lazysuzanne · 19/12/2013 12:33

Mensa I think the points you made in your earlier post are absolutely relevant.

MiaowTheCat · 19/12/2013 12:35

This reply has been deleted

Message withdrawn at poster's request.

Lazysuzanne · 19/12/2013 12:37

Msmos, I was attempting to explain rather than exonerate, but I see your point.
Lots of people lack self discipline and are unable to defer gratification, those are personal failings - character flaws.

CustardoPaidforIDSsYFronts · 19/12/2013 12:47

but if you haven't got £50 for a second hand freezer and yours is bust - then what

ephemeralfairy · 19/12/2013 12:51

PrimalLass Of course it's preferable, I'm just saying it might not be an option for a lot of people. If something breaks suddenly and you need a replacement ASAP, and you don't have a spare reserve of cash to pay for delivery, and you don't have time to spend looking on Freecycle...then what else are you meant to do?

FraidyCat · 19/12/2013 12:52

You think people should 'just do without' a fridge if they can't afford it? Have you just arrived from the 1940s? Do you think social services would be impressed with a family who kept their kids' milk in a bowl of cold water for the week or something?

A couple of people have mentioned fridges, someone also mentioned a washing machine. I don't agree that a fridge or a washing machine are a necessity. Of the two, I think I would find a fridge less hassle to do without. If on a very low income, rather than pay over the odds or use expensive debt to buy either, I think I would do without until I could pay with cash.

It isn't a necessity to be able to make a open litre of milk last a week. Fresh milk is not generally a necessity anyway. (Babies an exception? I suppose if there are babies drinking cow's milk then they will get through enough that it won't have time to go off.)

msmoss · 19/12/2013 12:54

lazysuzanne I know I was just moving your point on, what I've written looks a lot less sympathetic than how I meant it. It's like anything in life if you stop making excuses and take a look to see if there is anything you can do to change your behaviour then the chances are you'll be able to do things that will make your situation better, even if it does take a long time to see the results and things get worse in the short term. Easier said than do though, and deferring gratification can be a particularly difficult thing to master, I've managed it with buying crap to a certain extent, but have yet to come anywhere near with other things in my life.

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