Included in our swag of junk mail this morning was a flier for mob that do personal loans, anyway they happened to include the various costs associated with taking out a loan - they are:
20% establishment fee
4% flat monthly fee
plus the normal I.D. sureties etc.
So, if you want to borrow $1000 for a year the costs are:
Establishment fee = $200
4% flat monthly fee (4 X 12) = $480
So at the end of the year you have paid back $1680 including the $1000 you borrowed. That's an annual interest rate of 68%.
And they reckon caravan park owners are sharks!
ps...fine print says "additional fees and charges may be applied in the event of default"
Cloak said
04:21 PM Jan 26, 2015
Crikey explains why people use credit cards I guess.
Cruising Cruze said
12:59 AM Jan 27, 2015
And you would be suprised how many people that can't afford it take a loan like that out
Included in our swag of junk mail this morning was a flier for mob that do personal loans, anyway they happened to include the various costs associated with taking out a loan - they are:
20% establishment fee
4% flat monthly fee
plus the normal I.D. sureties etc.
So, if you want to borrow $1000 for a year the costs are:
Establishment fee = $200
4% flat monthly fee (4 X 12) = $480
So at the end of the year you have paid back $1680 including the $1000 you borrowed. That's an annual interest rate of 68%.
And they reckon caravan park owners are sharks!
ps...fine print says "additional fees and charges may be applied in the event of default"
And you would be suprised how many people that can't afford it take a loan like that out
John