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Bozowi: An alternative to payday loans

Payday Loans TrapWe have all seen the advertisements on television for payday loans and various other financial instruments that come attached to extremely high interest rates. If you haven’t then our initial response would be “where have you been”?! Even if you don’t watch television, you will no doubt have seen the multiple rounds of controversy that have shrouded the industry at times. See, the idea behind it all is fantastic; the customer gets the money they need in a stupidly quick manner, while the loan provider has carved themselves out a very profitable niche.

Unfortunately, that’s just on the surface of things. If we begin to look at the fineprint then we’ll see that these loans come with ludicrous APR’s, which means that over a course of a year you could easily end up owing many times more than you initially borrowed.

Let’s use a market leader as an example – we won’t mention names, so let’s call them The Sliders – we can see that their representative APR is 5853%. That means that if you borrow £400 over 30 days you would only need to pay £127.15 in interest. Quite a lot but workable, if you were really desperate for the cash, right? But what happens if you miss the payment for whatever reason? Maybe you’re made redundant and need to buy food and pay rent before you can even consider any other payments?

 

The debt can easily mount up

That’s where they have you. Once you’re outside the initially agreed period, they’ll start piling on the interest. If you fail to get their money back to them within 3 months, you would technically owe them £5,881.97. Remember, that’s on a £400 loan. But what if it went unpaid for an extended length of time? Let’s take a look.

 

Years

Amount Owed

1

£23,412.00

2

2,740,608.72

3

481,223,485.14

4

112,664,042,340.98

5

32,971,131,990,801.00

 

Now, if we’re honest, no loan company is ever going to ask you to pay that – we simply did that to point out the extortionate rates that they could apply over the long term. Nonetheless, £32 trillion in half a decade is quite impressive. That’s enough to cause a global financial crisis all on your own!

Realistically though, the debt will just continuously roll over and accrue fees and such, which will probably be enough to financially break anyone who isn’t on a salary comparable Sir Alan Sugar.

 

designer purseWe’re the alternative

Instead of borrowing money, which could ultimately leave you in hot water, why not just liquidate some of your unused and unwanted assets? It’s the financially responsible thing to do. We have had people come to us looking to downgrade their devices, to unlock money that has long since been spent. They sell their device to us and then buy a lesser model to replace it. In some cases, this can unlock as much as £250 – and you’re giving nothing up but a few apps that you can get back in a few months when you’re back on your feet!

We’re not just limited to electronics anymore either. If you have designer handbags, watches, shoes or anything else laying around that you think holds value, we’ll make you a genuinely generous offer. No panic, no worrying about paying it off at the end of the month –  it’s just there and it’s yours.


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