Loans R Us
My home office is currently being redesigned and my dining room table needs clearing, so I have migrated onto the sofa which inevitably means that along with working I get a daily dose of daytime TV and Sky News....
But thats that, what this is about is to rant about un holy and unethical are the adverts for loans on TV. For example, one might say "Mrs Adams reduced her debt payments from £1000 to £175". Others include statements like "You can have a loan from anything from 5000 to 100,000" over 180 months.
Having had serious debt problems in the past, which are now sorted I despise companies like this. They claim to take away the "millstone" or pressure around people who are struggling to keep up payments on debts owed. Reality is that to get a reduction from £1000 to £175, the example is a loan of £20,000 spread over 180 months (thats 15 years). AND I would guess that should someone have the financial blessing to pay of the debt, that you will need to still pay the X amount of years interest left on the loan anyway, which could be thousands and thousands.
But the problem is not solved, the debt is simply transfered on new terms and at an extra cost.
I suspect these companies do nothing to ensure credit cards, store cards etc etc are all cancelled. With that in mind I suspect that a lot of people taking out these loans then clear their debts but reuse the credit card / store card when convenient, quickly racking up the same bills and same debts and placing themselves in a far worse position.
Banks are not void of blame here. Although they are not keepers of peoples money management they do little to prevent you getting more overdrawn, or charged excess fees for unauthorised overdrafts. Banks are not moral / ethical disciples by any means, but they should, in my opinion, be taking care of clients in a more accountable role.
I guess there is a lot of us that just want more than we can afford. If we could just learn a little delayed gratification when we want something, or realise we don't need certain things then this would go a long way to sorting out debt problems I am sure. Maybe the old fashioned word is that most of us (I include myself in many ways, not just finance) are GREEDY....... thoughts?
But thats that, what this is about is to rant about un holy and unethical are the adverts for loans on TV. For example, one might say "Mrs Adams reduced her debt payments from £1000 to £175". Others include statements like "You can have a loan from anything from 5000 to 100,000" over 180 months.
Having had serious debt problems in the past, which are now sorted I despise companies like this. They claim to take away the "millstone" or pressure around people who are struggling to keep up payments on debts owed. Reality is that to get a reduction from £1000 to £175, the example is a loan of £20,000 spread over 180 months (thats 15 years). AND I would guess that should someone have the financial blessing to pay of the debt, that you will need to still pay the X amount of years interest left on the loan anyway, which could be thousands and thousands.
But the problem is not solved, the debt is simply transfered on new terms and at an extra cost.
I suspect these companies do nothing to ensure credit cards, store cards etc etc are all cancelled. With that in mind I suspect that a lot of people taking out these loans then clear their debts but reuse the credit card / store card when convenient, quickly racking up the same bills and same debts and placing themselves in a far worse position.
Banks are not void of blame here. Although they are not keepers of peoples money management they do little to prevent you getting more overdrawn, or charged excess fees for unauthorised overdrafts. Banks are not moral / ethical disciples by any means, but they should, in my opinion, be taking care of clients in a more accountable role.
I guess there is a lot of us that just want more than we can afford. If we could just learn a little delayed gratification when we want something, or realise we don't need certain things then this would go a long way to sorting out debt problems I am sure. Maybe the old fashioned word is that most of us (I include myself in many ways, not just finance) are GREEDY....... thoughts?
posted by monty at
10:17 PM
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