Text a loan at eye watering APR

The weekend has arrived once again and I decided that it would be wise to stay indoors this Saturday night, there was very little money in my account, and I didn’t want to put myself in a situation where I would be totally penniless. I wanted to leave a little something in there for food, electricity and other bits and bobs. Besides lately I’ve been tying to live frugally and only buy things that are actually necessary.

About 2 hours later after watching some seriously boring Saturday TV, and a bit of peer pressure from my mates, I decided that I would go out and just live on baked beans until next week when I got paid.

So imagine my absolute horror when I reached the cash point and found that my balance was £0.32…Oops, I guess that £150 leather jacket wasn’t exactly a necessity. But still I thought there would at least be a couple quid still I hadn’t realised that I had spent quite so much. The cab was going to be here any minute, my friends were all ready to go and I had no money. Not only was this a really embarrassing situation, it was also very frustrating and annoying.

That’s when one of my friends suggested TxtLoan, You simply send them a text, and within minutes your account is credited with £100. Easy. A little too easy I thought. So I looked into it a bit further.

I found that £100 needs to be paid back within 7 days in order to escape paying any extra charge, however, on day 8, £110 needs to be repaid which works out to be monstrous 994% APR.

If for any reason I find myself unable to make repayments by day 9, TxtLoan will send me a reminder which comes with its own £25 “administrative and transaction fee” which will increase the amount repayable to £135. All of a sudden this loan isn’t looking too attractive, and it gets worse.

If by day 11 I’m still not able to pay the loan back, I’ll be sent another reminder and again charged £25 administrative and transaction fee. This pushes the total loan amount to £160. By day 16 I’ll owe TxtLoan £180, and by day 23 I’ll have to pay £200.
Txt loan say “Day 46…if the loan is not paid back in full, we refer the loan to our collection department which incurs an additional £46 administrative charge and transaction fee and we may refer the loan to our collection partner.”

The company appeals to people who are living from pay cheque to pay cheque and young people who don’t really think about when they actually have to pay the money back. The company comes down very hard on customers who can’t afford to pay the money back straight away.

Although the company claim that they are there to “help people overcome day-to-day cash flow problems, they also encourage people like me who may need it for a night out, for fun or to go shopping.

Text loan only declines people who have been declared bankrupt or been subject of debt collection within the last 18 months. Other than that anyone, no matter how poor their credit status is and regardless of how much debt they are already in, has access to £100 to get themselves into even more debt.

There has always been pay day loan companies and quick cash lenders about but this must be the fastest and the most expensive.

All that information quickly put me off the night out, the programme that I had initially deemed boring suddenly became very interesting, so I wished my friends a great night and waved them goodbye, and opted for a quiet, debt free night in front of the TV.

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