Anorak | This is What Is Known As Lying With Numbers: Home Finance Loans

This is What Is Known As Lying With Numbers: Home Finance Loans

by | 8th, December 2011

THAT’S distinct from Disraeli’s thing about lies, damned lies and statistics: for this is straight up lying with numbers.

It’s all about the payday loan industry. You know, those appalling people that some 3 million of us borrow from each year. Usually for a lower cost than we’d have to pay a bank for arranging an overdraft, if they would even give us one.

But still, some have decided they’re evil and must be pursued. So we end up with things like this :

My Home Finance loans are not subsidised, and a borrower would pay £7.09 a week for 52 weeks to repay £300, producing a total repayment of £383.68 over the year including interest of £68.68 and an administration charge of £15. The same borrower taking out £300 from Wonga for just 31 days would repay a total of £398.91.

You see what they’ve done there? Compared the costs of a one year loan with those of a one month loan. Which is sorta OK, except when you come to that little arrangement fee. Because you do have to

You have already read 1 premium article for free today
Access immediately the premium content with Multipass

Or come back tomorrow

Posted: 8th, December 2011 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink