It's the thing.

29 January 2014

Credit Ratings, Loans, and the ol' Catch-22

Today, I'm getting slightly pissed off at the system. (As usual at this point, I imagine.)

People familiar with me and my past entries know I'm not in the best of financial health. I lived waaaay beyond my means back in 2009-2012 and was relying on payday loans to pay off other payday loans, and it became a horrible, vicious cycle of debt. And most people would think I'd be immediately hostile to payday loan companies. It's actually quite the opposite. The advice I offer is;

"Don't be stupid
Play it sensible and don't borrow if you don't have to
And if you absolutely have to, don't borrow more than you do actually need."

Borrowing to buy a shiny? Don't
Borrowing because your car broke down? Can it wait?
Borrowing because you might be booted out because rent issues? Talk to the landlord first.


But I doubt you came here for life advice from me, the world's biggest financial hypocrite.

I suspect you're here to listen to me rag on banks and shit.
Which is precisely what I am here to do.

Okay. My current position is ~£2k of debt. Very High-risk, low length debt. High repayments. Repayments I couldn't keep up with. My credit rating fell, obviously. I take that begrudgingly. I was an idiot and deserve every bit of financial pain I currently suffer.

But here's the thing: I do want to pay everything I owe back, I'm not taking the easy way out and declaring myself bankrupt just to save a few months of pain in the short term by fucking myself royally for the long term
(Though, with the amount of high-earners declaring Bankruptcy and keeping a shit ton of stuff they have, with seemingly no catches ticks me off)

There's a lot of loans out there, and lots offer a "Debt Consolidation" for a reason to take the loan. Considering I earn £900~ a month, and my usual outgoings totalled £850 for a few months, before rent, it was extremely unsustainable, and I was borrowing to pay off what I'd borrowed (Payday loans!)

I approached a bank. Wanted to borrow £2k over 3 years. Pay off the majority/all of the debt with the money, then pay that off over 3 years. Seems solid, right?

Declined.
Maybe they're just picky sons of bitches.

I tried 5 banks, 8 loan providers, some even catering to low credit applicants. All denied.

I continued to borrow from unsustainable, unregulated sources, throwing myself deeper in debt to the point where outgoings for debt were higher than my monthly wage.

I'm too proud/stubborn to ask family or friends for help, before you say anything!
I got myself in this shit, I can totally get myself out of it.

What I'm trying to get at here is, the financial world is one giant Catch-22 You can get money if you have money, and if you don't, you're thrown to the sharks, covered in blood.

The banks go under because they make some shit decisions (Much like myself and many others) and they get handouts.

Completely fucking unfair. And considering the amount of payday loan providers springing up, it's clear there's a market - and a problem.

Banks are at this point required for day to day life, but completely corrupted to its core.

Doesn't matter what kind of positive attitude they spin on their adverts and leaflets, to entice new people to accounts - once you're in our grasp, we'll hold your money, charge you to use it and deny you any help whatsoever when you're up shit creek without a paddle.

28p overdrawn? £5 a day charges until you sort it. We won't phone or e-mail you, but we'll send you a letter on second class post which'll take a week to get there.

Fuck you Halifax, and fuck you HSBC. Fuck you especially, Barclays, and a huge Go Fuck Yourself to RBS.