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Do YOU understand APR?
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By (user no longer on site)
over a year ago
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Yeah that’s the price you pay when you have bad credit. You can always get loans with a much lower APR through places like amazon or John Lewis. Or direct through your bank if you need it. Or a credit card.
Also it might state 99% apr, but that’s over the year. If you paid it all off one month later you’re only paying a fraction of that. Around 7.5%
I’m not condoning taking out any loans. I would advise against it in any situation. |
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"Was that the ad for the £568 telly that you can buy on £8 a week installments?
I think the final cost came to about £1,250 iirc  "
I was an Xbox package at around £600, marketed by a mum type woman, selling it as something that’s a need and promoted the company
like they have morals and the customers best interests at heart.
The lack of critical thinking among the masses is shocking.
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"Was that the ad for the £568 telly that you can buy on £8 a week installments?
I think the final cost came to about £1,250 iirc "
That sounds about right, sometimes I used to wonder into one of their outlets in town just to see exactly how much more you were paying over the odds to have it instantly. It really astounded me, I saved up and bought a brand new 42" Samsung telly for £250 about 4 years ago from an independent supplier. If I had gone through the h.p. route, I would probably still have been paying, and total cost would be over double what places like Brighthouse are charging. |
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"Was that the ad for the £568 telly that you can buy on £8 a week installments?
I think the final cost came to about £1,250 iirc
I was an Xbox package at around £600, marketed by a mum type woman, selling it as something that’s a need and promoted the company
like they have morals and the customers best interests at heart.
The lack of critical thinking among the masses is shocking.
"
Brighthouse is a terrible company which profits from the misery of those who are often not financially literate enough to understand what they are signing up to. |
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It's the double edge sword of APRs. They have to by law now show what the annual rate of interest, to allow comparisons. But for shorter term loans, it's a little misleading.
So, an example. Say I lent you £10, on the promise that you would pay me back in 7 days, and you'd give me £2 for my time and trouble. Sound reasonable? Technically, I would have advertise that at an APR of 1042%.
So yes, absolutely all the things the others have said hold true - don't do unless you know you can afford, read the T&Cs to let yourself know what you're getting into (particularly the penalties), etc. But equally, take a sanity check - what is the APR relating to. |
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If you’re a family relying on food banks , with no spare cash at all , and already in debt , what can you do ?
Christmas is round the corner and the kids will be chatting with their friends at school about what they hope for . The kids of the family that has nothing wont understand the APR , nor the financial dire straits their family are in .
And it sucks , proper big time it sucks .
And I can understand parents wanting to do their best to give the kids something . The fact that they can’t afford it is tragic , but some way or another , parents will try and do their best by their kids . |
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By *onyGalWoman
over a year ago
leeds |
I hate places like this. People who can’t afford to buy outright having their pants pulled down.
I feel like especially this time of year many people want to give their kids a good Xmas that they will take out agreements with brighthouse and on the surface sure, £8pw is nothing really, but they’re paying off their purchases for YEARS. The final amount paid is just ridiculous.
While I know that nobody is forcing anyone to take out loans like this, I think that lending as unethical and exploitative as this should be stopped. |
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"
While I know that nobody is forcing anyone to take out loans like this, I think that lending as unethical and exploitative as this should be stopped. "
Agreed, the proliferation of bookies, pawn shop/cash converters and loan shops like these since the recession is just plain unfair, cruel even.
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From my perspective as a single parent on a sink estate for ten years and before that actually homeless with those children (nothing to do with me I hasten to add) the only thing I got myself into debt over were necessities when I couldn't get them second hand.
I had a cold shelf in my pantry and had to buy food that needed chilling every two days. No freezer.
When we were offered a council house, we had very little. Clothes were kept in boxes I decorated with wallpaper, army blankets covered the floors and the beds were acquired when kind folks answered my ad in a local paper asking for help.
No phones at all (call box down the road).
We had a small rented telly, loads of free stuff to do in the park and city, a cat.
I worked hard to provide, we wern't ever hungry but we were utterly skint.
Working at a call centre, someone asked if I was going out that night and I said no, I'm skint. She said she was too and showed me the tenner she had in her purse, I had a quid to get me home on the bus and no more income for two days!
We went without and it may have been shitty, cold, deprived and miserable at times but I did not enter financial ruin because I thought getting stuff for my children that other people had were important or necessary.
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"I hate places like this. People who can’t afford to buy outright having their pants pulled down.
I feel like especially this time of year many people want to give their kids a good Xmas that they will take out agreements with brighthouse and on the surface sure, £8pw is nothing really, but they’re paying off their purchases for YEARS. The final amount paid is just ridiculous.
While I know that nobody is forcing anyone to take out loans like this, I think that lending as unethical and exploitative as this should be stopped. "
The problem is that without these places they would have to go without
Some might say that’s a good thing , but it must be awful having to explain to the kids that they get nothing for Christmas or their birthday . And what do you do if the Telly packs up , or the fridge , or the cooker ?
People who use these places don’t do so through choice . It’s a last resort , and in desperation plenty of families at least have something . And Brighthouse are hardly a massive money making corporation either . Look what happened to Wonga ! |
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I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay. |
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay. "
It’s certainly true that these places take a massive risk when they take the most vulnerable customers on . No one in their right mind would give someone with nothing anything of any value on the premise that they would pay for it eventually . The credit history of the average person using bright house is abysmal , so they are going to have bad debts creating a business model that simply wouldn’t be sustained without high mark ups .
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay. "
I do have some sympathy with this view point.
But the fact remains the people using these stores will probably not be financially literate. There comes a point where good business practices become exploitation.
It’s also true that they’re doing nothing illegal, it’s for the government to regulate the industry, and there’s little point blaming individual companies (as much as I personally find them contemptible).
Brighthouse are also not doing very well financially, and nearly went bust last year IIRC. |
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"I hate places like this. People who can’t afford to buy outright having their pants pulled down.
I feel like especially this time of year many people want to give their kids a good Xmas that they will take out agreements with brighthouse and on the surface sure, £8pw is nothing really, but they’re paying off their purchases for YEARS. The final amount paid is just ridiculous.
While I know that nobody is forcing anyone to take out loans like this, I think that lending as unethical and exploitative as this should be stopped.
The problem is that without these places they would have to go without
Some might say that’s a good thing , but it must be awful having to explain to the kids that they get nothing for Christmas or their birthday . And what do you do if the Telly packs up , or the fridge , or the cooker ?
People who use these places don’t do so through choice . It’s a last resort , and in desperation plenty of families at least have something . And Brighthouse are hardly a massive money making corporation either . Look what happened to Wonga !"
Better to go without than pay £2000 for a £600 television, and store up more financial problems for the future.
Just as with pay day loans, which people often take out to repay other debt, borrowing from Peter to pay Paul, which creates a vicious circle of debt that will quickly become unsustainable for those on low incomes. |
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay.
I do have some sympathy with this view point.
But the fact remains the people using these stores will probably not be financially literate. There comes a point where good business practices become exploitation.
It’s also true that they’re doing nothing illegal, it’s for the government to regulate the industry, and there’s little point blaming individual companies (as much as I personally find them contemptible).
Brighthouse are also not doing very well financially, and nearly went bust last year IIRC. "
This is the point , they aren’t doing very well financially . They made a massive loss last year , so while we look at them and their like as being exploitive , the fact is they fear a service that no one else would offer . Because it’s so risky . |
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay.
I do have some sympathy with this view point.
But the fact remains the people using these stores will probably not be financially literate. There comes a point where good business practices become exploitation.
It’s also true that they’re doing nothing illegal, it’s for the government to regulate the industry, and there’s little point blaming individual companies (as much as I personally find them contemptible).
Brighthouse are also not doing very well financially, and nearly went bust last year IIRC. "
I don't think the fundamental problem is that their customer don't know it's not a good deal at the individual level. The evidence would show that people in their circumstances are prone to impulsive behaviour. So my question would be, why do 'we' pay benefits in cash to people that we know can't manage money? Wouldn't an American programme of vouchers be kinder? |
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay.
I do have some sympathy with this view point.
But the fact remains the people using these stores will probably not be financially literate. There comes a point where good business practices become exploitation.
It’s also true that they’re doing nothing illegal, it’s for the government to regulate the industry, and there’s little point blaming individual companies (as much as I personally find them contemptible).
Brighthouse are also not doing very well financially, and nearly went bust last year IIRC.
This is the point , they aren’t doing very well financially . They made a massive loss last year , so while we look at them and their like as being exploitive , the fact is they fear a service that no one else would offer . Because it’s so risky ."
Another way of looking at it is that they’re doing a crap job of running a highly exploitative business with dubious ethics.
I hope they go bust.  |
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By (user no longer on site)
over a year ago
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay.
I do have some sympathy with this view point.
But the fact remains the people using these stores will probably not be financially literate. There comes a point where good business practices become exploitation.
It’s also true that they’re doing nothing illegal, it’s for the government to regulate the industry, and there’s little point blaming individual companies (as much as I personally find them contemptible).
Brighthouse are also not doing very well financially, and nearly went bust last year IIRC.
I don't think the fundamental problem is that their customer don't know it's not a good deal at the individual level. The evidence would show that people in their circumstances are prone to impulsive behaviour. So my question would be, why do 'we' pay benefits in cash to people that we know can't manage money? Wouldn't an American programme of vouchers be kinder? "
Not really they would just sell the voucher! Housing benefits though should go to the landlords what is happening now is madness. |
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay.
I do have some sympathy with this view point.
But the fact remains the people using these stores will probably not be financially literate. There comes a point where good business practices become exploitation.
It’s also true that they’re doing nothing illegal, it’s for the government to regulate the industry, and there’s little point blaming individual companies (as much as I personally find them contemptible).
Brighthouse are also not doing very well financially, and nearly went bust last year IIRC.
I don't think the fundamental problem is that their customer don't know it's not a good deal at the individual level. The evidence would show that people in their circumstances are prone to impulsive behaviour. So my question would be, why do 'we' pay benefits in cash to people that we know can't manage money? Wouldn't an American programme of vouchers be kinder? "
That might be a good solution.
Vouchers which couldn’t be exchanged for booze and fags (which mysteriously there’s always money for).
There are some council flats near me which have £50,000 cars parked outside them, which also seems a little dubious to me... |
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay.
I do have some sympathy with this view point.
But the fact remains the people using these stores will probably not be financially literate. There comes a point where good business practices become exploitation.
It’s also true that they’re doing nothing illegal, it’s for the government to regulate the industry, and there’s little point blaming individual companies (as much as I personally find them contemptible).
Brighthouse are also not doing very well financially, and nearly went bust last year IIRC.
I don't think the fundamental problem is that their customer don't know it's not a good deal at the individual level. The evidence would show that people in their circumstances are prone to impulsive behaviour. So my question would be, why do 'we' pay benefits in cash to people that we know can't manage money? Wouldn't an American programme of vouchers be kinder?
Not really they would just sell the voucher! Housing benefits though should go to the landlords what is happening now is madness. "
I agree with the landlord point. But where does it end, essentially we're saying that these people can't be trusted with money so should all their basic needs to covered in a way such that the only cash they have is disposable income? |
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By (user no longer on site)
over a year ago
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay.
I do have some sympathy with this view point.
But the fact remains the people using these stores will probably not be financially literate. There comes a point where good business practices become exploitation.
It’s also true that they’re doing nothing illegal, it’s for the government to regulate the industry, and there’s little point blaming individual companies (as much as I personally find them contemptible).
Brighthouse are also not doing very well financially, and nearly went bust last year IIRC.
I don't think the fundamental problem is that their customer don't know it's not a good deal at the individual level. The evidence would show that people in their circumstances are prone to impulsive behaviour. So my question would be, why do 'we' pay benefits in cash to people that we know can't manage money? Wouldn't an American programme of vouchers be kinder?
Not really they would just sell the voucher! Housing benefits though should go to the landlords what is happening now is madness.
I agree with the landlord point. But where does it end, essentially we're saying that these people can't be trusted with money so should all their basic needs to covered in a way such that the only cash they have is disposable income? "
Its a no win situation the closest you will get if its a benefits card that can only be used for home delivery at a supermarket on limited products but then you would have another outcry if chips and pizza wasn't on the list and fresh vegetables were. |
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"I love all the people that have done the financially modelling to know £8 a week is a rip off. Why not start your own business and offer £7 a week then? Because you'd go bankrupt, that's why. Maybe the real shocking part is how many people take credit that they won't repay.
I do have some sympathy with this view point.
But the fact remains the people using these stores will probably not be financially literate. There comes a point where good business practices become exploitation.
It’s also true that they’re doing nothing illegal, it’s for the government to regulate the industry, and there’s little point blaming individual companies (as much as I personally find them contemptible).
Brighthouse are also not doing very well financially, and nearly went bust last year IIRC.
I don't think the fundamental problem is that their customer don't know it's not a good deal at the individual level. The evidence would show that people in their circumstances are prone to impulsive behaviour. So my question would be, why do 'we' pay benefits in cash to people that we know can't manage money? Wouldn't an American programme of vouchers be kinder?
Not really they would just sell the voucher! Housing benefits though should go to the landlords what is happening now is madness.
I agree with the landlord point. But where does it end, essentially we're saying that these people can't be trusted with money so should all their basic needs to covered in a way such that the only cash they have is disposable income?
Its a no win situation the closest you will get if its a benefits card that can only be used for home delivery at a supermarket on limited products but then you would have another outcry if chips and pizza wasn't on the list and fresh vegetables were. "
This is part of the reason why poor people tend to have poor diets and be overweight.
Eating healthily is expensive for those on low incomes. |
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"Licensed loan sharks exploiting societal pressures to buy things you do not need with money you do not have.
"
You are denying some people their liberty by deciding for them, what they do and don't need. Obviously not all their customers default on their debts and if they could get a better deal, they would have. So for some individuals, they wanted something and took the best deal they could get. You'd deny them that liberty because of what a totally unrelated person did. Slippery slope... |
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"Who doesn’t understand APR
Btw credit cards are cheaper than that"
Lots claim to because they feel foolish there are some on this thread who claim to understand it but don't which is sad really and they end up not asking when they should and are taken advantage of. |
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"Is there not a legal cap on APR in the UK?? I'm actually shocked reading some of the comments here regarding rates being charged "
0.8% for pay day loans. Which still permits 1500% per annum ish.
No idea whether that applies to HP agreements such as Brighthouse offer. |
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I understand Apr and the underlying formula
Many people in my experience do not want to understand Apr or finance they just want stuff
They don't care if they can afford to repay , will be able to afford to pay or consequences
And if we suggest many do not understand or want to understand Apr, pcps are well beyond their threshold , |
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"Is there not a legal cap on APR in the UK?? I'm actually shocked reading some of the comments here regarding rates being charged
0.8% for pay day loans. Which still permits 1500% per annum ish.
No idea whether that applies to HP agreements such as Brighthouse offer. "
0.8% per day that should have said. |
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By (user no longer on site)
over a year ago
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I don't really understand APR. I would be surprised if the people using companies such as Brighthouse understand it. Perhaps they do understand but don't care.
Lots of people use their credit cards and get massively in debt but can only afford to pay off the minimum monthly payment. Big car/ expensive holidays/ etc for £10 a month. Bargain. |
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By (user no longer on site)
over a year ago
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I don't totally get it
I do know what the cost of something is
I know if that is acceptable to me
If I am buying on credit card, it's paid off monthly so I am not paying interest
If I am buying a larger item on credit e.g. a car, I want to know three things :
1. What it's gonna have cost me when I've done paying for it ?
2. How much of that is the cost of credit ?
3. Can I afford the monthly payments easily ?
If all 3 equate for me, then I'll sign on the dotted line
That's as easy as I can make it for myself
That's also why I tend to live life comfortably as opposed to excess / on the edge of what I can afford |
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By *onyGalWoman
over a year ago
leeds |
"Another way of looking at it is that they’re doing a crap job of running a highly exploitative business with dubious ethics.
I hope they go bust. "
Here’s hoping.
Regards offering a better weekly payment because they are raking it in.. I couldn’t look myself in the mirror if this was the kind of business I was into. I’d consider it both shabby and shameful. I do run my own business, and while I don’t make a fortune it is ethical, which greatly benefits my staff and impresses clients so I’ll stick with what I know  |
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