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Thread: Microlenders to blame for wage demands

  1. #51
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by bjsteyn View Post
    Finally settled my FNB loan, i can breath again!
    Feels good, doesn't it

  2. #52
    Silver Member bjsteyn's Avatar
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    Quote Originally Posted by Dave A View Post
    Feels good, doesn't it
    Yah, but no Christmast money for me :-(

    But that frees up R1500 per month for me and got a 30% discount for settling it, so it was worth settling.

    Feel like i can move forward again, it is like walking with a knife in your back for long time and suddenly somebody pulls it out and you realize
    the pain is gone. haha

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    "The best advice is to only buy for cash- and do without" - That is not good advice... Reason I say so is that most of these people who borrow money from micro lenders are in a tight fix and need the money urgently. I doubt that anyone who wanted to buy an ipad or something for example would take out these high cost payday loans. They are aimed at people who have R0.00 in there bank account and need to buy baby food or something like that.

    The best advice I can give is if you find yourself in that situation don't panic and borrow money from the first people that will give it to you - shop around for the best deal and also don't borrow the money for the full term they want you to (e.g. if they say you can borrow R2000 for 31 days and you know you get paid in 5 days - ask them to take the loan for 5 days, or maybe 7 days just to be safe - That will greatly reduce the amount of interest they charge you.
    Last edited by Dave A; 24-Mar-14 at 09:47 PM.

  4. #54
    Full Member polpak's Avatar
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    Noticed in todays LexisNexis reporting: Britain curbs payday lenders; Ceiling on fees and rates to cut industry's revenue by £420 million a year

    ---extract-start---

    The financial regulator imposed a limit on interest and fees starting next year. Among other rules, the cost of any loan may not exceed the amount borrowed.

    British regulators said Tuesday that they would cap the fees and interest that payday lenders could charge for short-term loans.

    The restrictions, which take effect in January, come after an outcry in Britain in the past year over the practices of such lenders. The loans get their nickname because the customers tend to be people who need to borrow money between paychecks and repay the loans on the next payday. They are often willing to pay the high interest rates and fees demanded because banks will not lend to them in such small amounts on a short-term basis.

    ---extract-end---


    Article perhaps easier to view report:

    http://www.independent.co.uk/money/l...s-9601473.html

    To find a solution that allows legitimate lenders to continue their business while curbing the excesses that penalise vulnerable people.


    The problem occurs anywhere the legislation enables it to occur...

  5. #55
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by polpak View Post
    The problem occurs anywhere the legislation enables it to occur...
    Theoretically the National Credit Act has controls and caps in place even stronger than those being proposed in the UK. It still hasn't stopped the problem.

    Combination of things, I guess. The informal sector, by definition, operates outside of formal mechanisms. And of course the big one - a market that will buy the product despite the obvious pitfalls.

  6. #56
    Full Member polpak's Avatar
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    Yes, while those who go outside the law, reduce their protections from the law.

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