how stupid do you have to be...

[Loosehead]

To borrow �5740 at 34.9% and let the debt grow to �384000. See here: http://www.sky.com/skynews/article/0,,30000-1190377,00.html

What should the courts do?

[butter1]

I read about this a while ago.  Firstly, I wouldn't take a loan out that was 34.9% APR.  Secondly, I wouldn't let it grow to �384000....what a ridiculous amount.  I'm not sure whether I feel sorry for these people or just think they are abit stupid.  Depending on how much they did pay back, which I'm assuming must be more then what they borrowed then I think the Courts should let them off from paying it.

[boobesque]

oh my gosh, i am flabbergasted!

[acw]

Perhaps not stupid.... maybe just naive and acting on some VERY bad information.

Their credit rating will be shot for life - that's no less and no more than what they deserve!

And I bet they're not the only ones....

[luckyboy]

Naive and Definitley pretty stupid..

[Oneeyedvic]

I am disgusted that they 'got away with it'.

However, 34.9% at that time was not extortianately high - Base Rate in October 1989 was 15%. It would be the equivalent of borrowing at around 15%APR now - which is not unreasonable to thise with an impairde credit rating.

They managed to get off on a technicality - personally I think they should lose their house

[jno]

not so stupid, by the sound of it!

[acw]

They are stupid, jno, their lawyers aren't! :-p

I know I said earlier maybe not stupid, but on reflection it was for home improvement - not a life saving operation.  I don't know why people choose to get into debt for tihngs they don't NEED.  But perhaps that's another debate....

[jno]

acw everyone gets into debt all the time - that's what credit cards are. Used to be that you only got into debt to buy a house and perhaps a car on the never-never; now it's virtually everything.

You're right about the lawyers (groan) but I guess their clients deserve some, er,  credit for hiring them!

btw acw, did you see Milly was looking for you to ask something? (sorry Loosehead, a bit off topic there.)

[rod]

This guy is really bad! Loanshark  And where he belongs.

[acw]

Hey,

jno - I did see the post from Milly, thanks. 

I personally don't own a credit card, and am avoiding them like the plague (you've never seen me on the High Street during sale season - it's ugly, believe me!!!)

However, many people have credit cards and pay them off in full at the end of the month.  I don't really view that as "debt" (although it obviously technically is).

I'm just talking about taking a loan to paint your living room or get a conservatory or whatever.  It's not really the same as getting into debt in order to pay university fees, your mortgage or for an operation that can't wait as long as the waiting list needs you too!  Well - not the same in my opinion anyway!!! :-)

[stevie21]

I'd take their house and sell their kidneys. I'm not the most sympathetic person in the world.
I'd have wanted the loans company to get at least the �26K that they would have got if the loan agreement was adhered to, plus all costs.
Repossess the house.

[ahd70]

You people are so pompous and full of yourselves!! I can appreciate saving up for things, but the biggest debt most of us have is a mortgage and I fail to seee how anybody can save up for a house!!

I am a hard working mother and having brought my son up for 8 years on a third floor council flat in a very violent part of the east end of London I knew I had to move beore my son was was the next teenage stabing victim.

The best I could do was a run-down old house that needed a lot of work but it was a safer healthier part of the world for my son.

Shortly afer moving my partner took ill and we suddenly had to survive on my wage alone, as the insurance wouldn't cover his illness.

When I started to get into arrears and be threatened with repossesion I would have taken a loan from anywhere I was so desperate to keep a roof over my son's head.

I need a loan to finish the works so that I can sell it - not just to paint my bedroom!! Many people that carry out home improvements are doing so through needs as much as vanity etc.

You people may think debt is stupid but you need to be in that position to appreciate the need for debt!!