Case study #1: Encounter with an UK cash loan company

This real life story concerning a UK cash loan company happened back in 2003. This story involves two of my friends who were UK citizens. I will refer to them as friend A and friend B, since they obviously doesn't want their identity disclosed. This case study is perfect to see the differences between two different types of mentality and attitude, and how they both respectively clear off their debt.

So how did they end up borrowing money from a UK cash loan company? One day after a night out at the local pub, they were both driving home with an alcohol level that is higher than that allowed by the law. They were later involved in an accident, where they drove too fast and rammed into another person's car from behind. They were both quite lucky to not be seriously hurt, but their car was heavily damaged. The other driver was unhurt, but his car was badly damaged in the rear. In case you were wondering, both cars involved in the accident were BMWs. Ouch!

To make matters worse, they couldn't go to the insurance company for claims, because the car that belonged to friend B, had no insurance. The insurance for that car had expired quite sometime ago, but he never took the time nor thought to renew it. The person driving, friend A, had quite a number of points in his driving license so they both ended up pleading with the other driver to not make a police report. They told him that they would settle the bill for repairing his car. After convincing the other driver, they sent their respective cars to the workshop. Bad news came, when my friend needed to pay 6000 pounds to fix his BMW. They had to change the entire engine, gearbox, drivetrain and lots of bodywork. Worse news was to come when the other persons BMW required 3000 pounds to repair. Although it suffered only minimum damage, that car has repaired at a licensed and authorized BMW workshop, which made it that much more expensive.

So now they needed to come up with close to 10,000 pounds in one week to settle both workshops. They were both still fresh in their jobs after just graduating a couple of months earlier. Both were earning 1300 pounds a month, but they only had a total of 2000 pounds in the bank. They were left with no choice, but to find one of their local UK cash loan company. They both went to a UK cash loan company that was recommended by their friends. They were both offered a 8,000 pound loan at 20% and for twenty months. Friend B was almost ready to accept that loan if not for friend A's objection. Friend A calculated the loan and found out that they will not be able to afford the payments, 2000 pounds a month. As well as having to pay a very large amount, 40,000 pound in total! Not a good deal to say the least!

Friend A tried to negotiate politely with the UK cash loan company, but the results were still beyond their capabilities. Just as they both refused the loan and walked away, the person from that UK cash loan company that was dealing with them, asked them to stay and they then agreed to a much better loan rate. This time, they were able to get a loan at 12% and for ten months. This means that they would need to pay 1760 pounds a month and a total or 17,600 pounds by the end of the payment period. Friend A knew that it was about the best offer they could get. They couldn't apply for a personal loan from the bank due to various reasons. To be sure that they will be able to pay that loan from the UK cash loan company as well as have enough money for themselves, they both decided to take a part time job.

Luckily for them, one of their friend's father needed some part time workers for his pub. They both got the job which paid them an extra 450 pounds a month. Their second job required them to work from 7pm to 11pm. Considering that their job was fairly easy, it was good pay and they also had dinner for free at the pub. But from here on, their different mentalities and attitude would determine how they would both handle the situation. Working at the pub changed friend B. He felt jealous to see other people relaxing and enjoying themselves at the pub. He got more and more depressed and he actually quit that job by the end of just one month. Friend A understood the situation they were in and he tried to advice friend B, but to no avail. Even then, Friend A continued with his part time job as he knew that it was vital in helping them solve their loan and also avoiding any unwanted trouble from that UK cash loan company.

They each had to come up with 880 pounds a month for their loan. After quitting the job, friend B was left with only 420 pounds each. But thanks to his part time job, friend A still had 870 pounds and he didn't have to worry about dinners. Friend B continued his depression and occasionally went out for drinks to make himself feel better. Because of his attitude and lifestyle, almost every month after quitting his job, he didn't have enough money to pay for his share of the loan. Luckily for his sake, friend A was saving and was able to cover for the amount that friend B was not able to pay. After ten grueling months for friend A, they were able to settle the debt without any incidents.

Friend A told me that for the entire ten months, he kept thinking to himself that "drinking is not going to solve our problem. I need to do what is needed to directly solve our problem". This mentality assured him of the situation they were in, and what they needed to do to settle the debt to the UK cash loan company. Friend B on the other hand, kept feeling sorry for himself although the person who sacrificed the most was friend A. The difference in attitude and mentality alone for two different people made them solve their problems through two different ways. Friend A faced the problem realistically, head on. Friend B on the other hand, was trying to avoid the problem which had already occurred, by hoping someone else would solve the problem for him.

Could you imagine what would have happened to friend B had friend A not helped him out? That debt would never had been settled by the agreed period. What trouble would have came from that, we can only imagine. Thanks to Friend A's strict mentality and attitude of facing the problem head on, they were able to avoid any unwanted situations with that UK cash loan company. This case study shows you the importance of a cool head when applying for a loan as well as the importance of the right attitude and mentality when you are in debt.


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