Swimming with the Loan Sharks

August 12, 2013 at 08:35 Leave a comment

WongaA piece of advice if you are considering swimming with sharks:

Make sure you are on guard all the time and, preferably, within a caged environment. Also, do not even consider going anywhere near the shark without supervision of an experienced shark expert.

Oh! Did I say ‘shark’? I meant ‘loan shark’. The desperation to make ends meet in the UK has risen t such high levels that people are taking unnecessary risks by applying for even small loans. UK’s most famous site, Wonga, seems to be advertising everywhere using cuddly old pensioners (puppets) to entice victims’ softer side. No the wonder they are heavily advertising. Wonga charge 4,124% APR. Fact: borrowing £100 at Wonga’s APR costs more than the US national debt (over $14 trillion) after 7 years!

Money inherently has no value. There is no gold backing up any currency. Therefore, the only value money has is perceived value, which is totally subjective. Should people’s perception change, then money will be worth no more than the cost of the paper it is printed on.

The majority of people have become money or wage slaves by getting into debt to repay the mortgage or to cover the cost of living. Prior to the expansion of easy credit in the 1980s, it sufficed to have one breadwinner in the household to cover the mortgage and living costs. The change in the financial system made it easier to borrow money and borrow money we did.

Consequently, more and more people began buying things they could not afford with their existing wages. Demand for products rise and, when the supply cannot keep up with demand, the price of these products rise. This is exactly what has happened to the property industry. In many parts of the UK, it is impossible to get onto the property ladder without having two wage earners.

The rise of the payday loan sharks coincides with one of the deepest recessions. Resorting to borrowing money out of desperation is a sure-fire way to get into debt that will sink you. Money is one of the grand illusions that have trapped billions of people into merely surviving. Forget thriving. It is time to take stop, breathe and take stock. The loan sharks do not force people to get into debt. Individual consumers make that decision for themselves.

However, if you have found yourself caught up in the debt trap with a payday company and have a complaint, then turn to the Financial Ombudsman. Between April and June 2013, 72% of the complaints have been upheld. Complaints can be made to the Financial Ombudsman Service consumer helpline on0300 123 9 123 or 0800 023 4567 or emailed to complaint.info@financial-ombudsman.org.uk. For further advice on payday loans, you can also turn to the Citizens Advice Bureau and get in touch with the Money Advice Service for money management advice.

Love and gratitude,

Harun Rabbani

Author of Shattering the Grandest Illusions




Entry filed under: Economics, Personal Evolvement. Tags: , , , , , , .

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