Bad Credit Advert

This made me laugh - maybe an unintentional pun?
http://img258.imageshack.us/my.php?image=badadul0.gif

But 400+% apr? Jeez...

 

Blimey.

 

I think if you offered up some of your fleet, they'd be wanting to
apply a much higher APR lest they have to repo it and actually need to
recoup some of their money from the sale of it. ;-)

 

"Typical APR 2229.81% (30 day loan)"

Well yes, that is high but given the basis of the load (ie, 30 days)
and the fact that by (UK) law the APR has to be expressed in years,
it's not that bad...

As with all financial instruments, just knowing the interest rate
is not useful unless you also attach a term with it. Saying that you
get a "6% return" on something can be very good if it's done in a
week, but very bad if it takes 10 years.

The annualised interest rates make short-term ("payday") loans
look like a real rip-off, but given the much smaller amounts
involved, one has to consider the appropriate cost involved.

In the above example, how much do you think you pay in interest
given the "Typical APR 2229.81% (30 day loan)" rate?

It actually works out at £30. Amount Borrowed = £100,
Amount Repaid = £130. Cost of loan = £30. In "real" terms
(ie, the amount of money it costs you for the time period)
it's not actually that bad. The time period and the law on
expressing the rate makes it look worse.

If you borrowed the same £100 on your mortgage over 25 years,
at an example rate of 6.25%, you'd be paying back over £198,
and that's without any fees incurred which you can bet your
shirt on being added to the amount you borrow and thus also
attracting interest.

The point I was making is that this is a long(er) term loan
that still has a stupidly high interest rate, along with
a poorly worded title ;-)

 

Cnut ;-)

Oh, and get a working sig sep....