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But again, this reduces next month’s income. So you’ll end up having the same problem every month. Unlike with companies, employed people’s income doesn’t vary
by Semaphor 5y ago
But again, this reduces next month’s income. So you’ll end up having the same problem every month. Unlike with companies, employed people’s income doesn’t vary between months (or maybe it does for some?).
- meheleventyone 5y agoYes it’s a trap which is why a lot of people see it as predatory particularly as the interest rates are (used to be?) obscene. Payday lending companies can become a leech on poor people. This looks a little different to the usual structure of payday lending but still has the issue you point out.
- pjc50 5y ago> So you’ll end up having the same problem every month Yes. This led to the UK FCA trying to ban rollover loans: https://www.fca.org.uk/news/news-stories/tougher-rules-payday-lenders-take-effect https://www.fca.org.uk/news/news-stories/tougher-rules-payda... > employed people’s income doesn’t vary between months (or maybe it does for some?). Exactly: gig economy, variable shift patterns, tipping, benefit payments, delayed cheques, freelancers of all sorts, delayed payment of debts by customers, seasonal employment, sudden unemployment, seasonal expenses, etc. (That said, this app only works for payments from one employer, but I can see it working well for the service industry)
- dagw 5y agoemployed people’s income doesn’t vary between months. As you mentioned for some it does (overtime etc.), but even if 'gross' income doesn't vary month to month, expenses can vary massively and so your total 'net' income can be very different month to month.