Discussion
feck me just seen an ad for them on tv 2689%apr thats got to hurt..
i love the way they try to make out its not expensive
http://www.wonga.com/money/is-this-apr-expensive
i bet most people use the money to go to brigh house with as well
i love the way they try to make out its not expensive
http://www.wonga.com/money/is-this-apr-expensive
i bet most people use the money to go to brigh house with as well
Graham said:
feck me just seen an ad for them on tv 2689%apr thats got to hurt..
i love the way they try to make out its not expensive
http://www.wonga.com/money/is-this-apr-expensive
i bet most people use the money to go to brigh house with as well
You.i love the way they try to make out its not expensive
http://www.wonga.com/money/is-this-apr-expensive
i bet most people use the money to go to brigh house with as well
Retard.
Graham said:
feck me just seen an ad for them on tv 2689%apr thats got to hurt..
i love the way they try to make out its not expensive
http://www.wonga.com/money/is-this-apr-expensive
i bet most people use the money to go to brigh house with as well
Probably not far wrong. i love the way they try to make out its not expensive
http://www.wonga.com/money/is-this-apr-expensive
i bet most people use the money to go to brigh house with as well
To be honest, these are small amounts so the cost of admin etc will be a significant % of the value of the loan so a high rate is needed in order for it to be profitable.
I was going to also add that the risk of default must be much higher than normal for this end of the market but I recall that there is a bizarre effect that kicks in if the amount is small enough that the default rate drops substantially.
Either way, it's going to cost a lot more per loan to lend £100 than £10,000 and while you would attempt to get money back on a £10k loan you would have to walk away from a default on a £100 or sell it on to a real bottom feeding collector.
Either way, you wouldn't want to find yourself needing their services.
APR = Annual.
These loans = not intended to be annual.
Charging 100 quid to lend 1000 when you're dealing with utter scummers, or 50 quid for a few hundred, is not that big an amount. It's just a scary headline percentage that the last shower in parliament insisted was displayed to try and protect the braindead spazmongs who take out such loans from themselves.
These loans = not intended to be annual.
Charging 100 quid to lend 1000 when you're dealing with utter scummers, or 50 quid for a few hundred, is not that big an amount. It's just a scary headline percentage that the last shower in parliament insisted was displayed to try and protect the braindead spazmongs who take out such loans from themselves.
clarkey said:
APR isn't a great measure for short term debts though..... if I lend a colleague £20 for a taxi on a friday so he can get home, and he pays me back on monday but buys me a sandwich at lunchtime for £3 to say thanks (interest??), what is the APR on that?
What sort of Sandwich?? If it was cheese and pickle i would say the APR would be high. If it had Tomatoes in it, i would say Go f
k a Pony....
shakotan said:
Graham said:
shakotan said:
You.
Retard.
Charming... or were you looking in a mirror at the timeRetard.
If I [as a firm] were to lend you £100 for two weeks, what would you deem an appropriate 'charge' for me to make for this service?
shakotan said:
Graham said:
shakotan said:
You.
Retard.
Charming... or were you looking in a mirror at the timeRetard.
If I [as a firm] were to lend you £100 for two weeks, what would you deem an appropriate 'charge' for me to make for this service?
Cheers,
FT.
cal72 said:
shakotan said:
Graham said:
shakotan said:
You.
Retard.
Charming... or were you looking in a mirror at the timeRetard.
If I [as a firm] were to lend you £100 for two weeks, what would you deem an appropriate 'charge' for me to make for this service?
Fume troll said:
shakotan said:
Graham said:
shakotan said:
You.
Retard.
Charming... or were you looking in a mirror at the timeRetard.
If I [as a firm] were to lend you £100 for two weeks, what would you deem an appropriate 'charge' for me to make for this service?
Cheers,
FT.
Edited by shakotan on Thursday 11th November 10:11
shakotan said:
Let's look at it from another angle.
If I [as a firm] were to lend you £100 for two weeks, what would you deem an appropriate 'charge' for me to make for this service?
If I [as a firm] were to lend you £100 for two weeks, what would you deem an appropriate 'charge' for me to make for this service?
Fume troll said:
Let's say £6.61
Cheers,
FT.
Cheers,
FT.
shakotan said:
£6.61 wouldn't even cover the overheads of the loan, let alone make a profit from it. £6.61 'interest' over 2 weeks equals an APR of 343.7%, I bet that's still thought of as 'unreasonable' by some!
I picked 6.61 because over a week it gives the same APR as the OPs story. Except you said two weeks so I wasn't as clever as I was trying to be... Cheers,
FT.
Edited by Fume troll on Thursday 11th November 10:17
Fume troll said:
shakotan said:
Let's look at it from another angle.
If I [as a firm] were to lend you £100 for two weeks, what would you deem an appropriate 'charge' for me to make for this service?
If I [as a firm] were to lend you £100 for two weeks, what would you deem an appropriate 'charge' for me to make for this service?
Fume troll said:
Let's say £6.61
Cheers,
FT.
Cheers,
FT.
shakotan said:
£6.61 wouldn't even cover the overheads of the loan, let alone make a profit from it. £6.61 'interest' over 2 weeks equals an APR of 343.7%, I bet that's still thought of as 'unreasonable' by some!
I picked 6.61 because over a week it gives the same APR as the OPs story. Except you said two weeks so I wasn't as clever as I was trying to be... Cheers,
FT.
shakotan said:
clarkey said:
APR isn't a great measure for short term debts though..... if I lend a colleague £20 for a taxi on a friday so he can get home, and he pays me back on monday but buys me a sandwich at lunchtime for £3 to say thanks (interest??), what is the APR on that?
5,960,364.5%clarkey said:
shakotan said:
clarkey said:
APR isn't a great measure for short term debts though..... if I lend a colleague £20 for a taxi on a friday so he can get home, and he pays me back on monday but buys me a sandwich at lunchtime for £3 to say thanks (interest??), what is the APR on that?
5,960,364.5%Initial Loan Value - £20
Loan Period - 3 days
Interest - £3
Monthly Interest Value (£3/3*30) - £30
When you stick it in here/http://www.prudentminds.com/apr-calculator.ht..., a one month £20 loan with the total repayable of £50 gave me an APR of 5960364.5%
I'm not a finance genius though, so may have got it completely wrong!
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