Quote:
Originally Posted by Margaret Pilkington
The very high Annual Percentage Rate is purely because the loans are short term.
You really wouldn't borrow on a long term loan with rates like that.......personally, I try very hard not to borrow any money from anyone.
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Its nothing new. My late dad told me about the moneylender on his street, who used to lend hard-up neighbours 3 half crowns on a Monday, to be paid back as ten bob on payday on a Friday. That works out as an APR of 3,041%. It made him determined never to borrow money, and as far as I know, he never did, other than his mortgage. With one or two blips, I've generally managed to follow suit!
As well as dealing with loan sharks, the government should also look at how easy it is for people to run up debts. Retailers are too ready to give credit if it boosts sales.