Surveys and lending

I started to do an online survey today relating to getting loans online, and gave up: the questions became increasingly ridiculous, and I couldn't be bothered. I started doing online surveys when I was out of work in 2006, having been assured time and again that these surveys would bring heaps of money. I am so naive it's not funny. But when you're feeling rather desperate after giving up a reasonably paid job, anything seems possible.

I have had some benefits from them - one in particular is getting a couple of cinema tickets every so often as a result of doing the surveys. But that's about it; the other amounts that turn up are pretty minimal. You'd have to be doing surveys all day long, and I'm already crazy enough without contemplating such a way of spending my time.

Anyway back to getting loans online: a lot of these kinds of loan are of payday loan type, where you can get money lent to you using something like your car as collateral. Not a terribly good idea, especially if something happens to your car. Borrowing money is something we've all had to do at times, and there are plenty of opportunities for the unwary to get themselves into hot water these days. If you're going to borrow money, go to a place that can be trusted, has a good reputation and won't fleece you silly.

There are more than enough of these around; the loan mightn't happen instantly, but neither will it cost you an arm and a leg, items that most of us can do with, rather than without.

Mobile borrowing

Finnish firm Ferratum Group has set up its mobile microloan service in New Zealand offering cash to borrowers at high interest rates. Already there's been a fair amount of concern as to what will happen to people who use this service in a casual way, and how much debt they'll accumulate within a short time.

If you pay the loan back quickly, this system will probably work in your favour, but if you let it ride, the amount you owe is going to increase exponentially. There is a schedule, but it's not something you can read through quickly on your cellphone - especially when you're wanting the money quickly. According to Philip Macalister, in the schedule (see here) interest rates range from 91% for $100 borrowed for seven days through to rates of more than 500%.

Ouch. Off the top of my head I can't work out what that will add to your loan, but I don't have any doubt that it's a substantial amount.

There are all sorts of loans available out in the big wide world - do we educate our kids as to how dangerous some of these can be? I just came across a common loan system (see title loans Raleigh NC for an example) that will lend money against your car, if you're over 18 and the car has a value of US$2500. A car isn't quite the best asset to be borrowing against, but I suppose it's a step up the lending ladder compared to borrowing via your mobile.

Kiva

Kiva is finally starting to make headlines. Well, when I say that, I mean that the first headline I've seen regarding Kiva apart from those on the Kiva site itself turned up in the Guardian online today.

I first came across Kiva last year, in relation to Blog Poverty Day. It seemed a good scheme then, and it's proved itself since. I think what I like about it is that the money you lend out actually comes back to you and you can re-lend it to another person in the queue. And there are plenty of people in the queue, too.

It's very simple. The website shows you a bunch of photos of people who would like a loan to fund either a small business starting up, or one that's already underway. These loans go to people who are already on the move; they may live in poverty areas of the world, but they're doing their best to make sure they don't go down the tubes.

Some of the photos show groups of people who are working as a collective. You can lend to either. And the amount you lend is minimal, really: $25US. I've had it paid back three or four times over already, and there's still money in my account. If I need to top it up, I just draw a bit off my Paypal account and it's done! Kiva asks for a small donation usually, for admin purposes, but you're not obliged to pay this.

I'd recommend it to anyone: it's certainly better than spending your money on diet pills that work (or don't work, as the case may be), or on some new clothes, or a DVD or book (the last two are where I fall down when browsing in shops). Kiva is a way to make a difference in the world. It's a tiny difference as far as I'm concerned, perhaps, but combined with thousands of others' money, it makes a huge difference to people in places we've often never heard of.

Check 'em out!