Payday Loans: What is your opinion?

[brandondrury]

Re: Payday Loans: What is your opinion?

Neither my parents or my teachers ever taught me about these topics and yet they are vital to living our lives as much as knowing how to drive a car or apply for a job.

I know the feeling. In regards to education, I agree 100%. I'm not sure why finances have been left out of high school curriculum. I'll blame it on the low pay of the people we employ to teach our kids. If we paid them more, we'd get people who understand money teaching them, maybe.

I wonder how many people feel that they were mislead by a payday loan company? I've heard sad cases where people spent over $10,000 with payday lending companines. I guess these people didn't understand basic math and just sort of jumped in blind. Maybe they were financially desperate enough to just jump in and didn't notice the long term issues involved.

Brandon

[lillian]

Re: Payday Loans: What is your opinion?

I always wonder this when I see people complaining about payday loans, have any of you every actually used one? I have a feeling the people doing all the complaining and wanting them banned have never been in a position where they were a few hundred bucks short.

For me, paying $30 to take out a $200 ladvance on my paycheck makes sense. There are times when I've written checks to pay bills like my credit card and sent off before the due date (because the late fees are $39). It takes less than a 1/2 hour to get the cash at a payday loan place, I can then quickly deposit it and avoid bouncing a my check and returned check fees and late fees.

Maybe other people have people they can borrow from to cover situations like this, but I don't. My bank offers some sort of loan, but it takes a few days to approve my application and that wouldn't help.

For me, using a payday loan a few times a year actually saves me untold numbers of dollars in other charges.

Unless any of you have actually been in a situation where you need extra cash to cover bills, I don't think you have a right to complain. And please don't support a ban of payday loans. It would be bad for those of us who use it.

[Ima saver]

Re: Payday Loans: What is your opinion?

Well I have never been in that situation, so I won't complain, I am just sorry that you have to use the payday loan.

[Optsol]

Re: Payday Loans: What is your opinion?

Back to the original post. Payday loans are bad. Gov't involvement in payday loans is worse

[brandondrury]

Re: Payday Loans: What is your opinion?

Back to the original post. Payday loans are bad. Gov't involvement in payday loans is worse

That's a brilliant way of looking at the situation. It appears that Lillian doesn't agree with about payday loans being "bad", but that's okay.

To be honest, I'd guess that cable TV is a greater detriment to society and payday loans. But that is just my opinion.

Brandon

[Optsol]

Re: Payday Loans: What is your opinion?

Just giving my opinion...

Cable TV may indeed be of greater detriment, but I wouldn't want the gov't's thumbs on that pie either.

I'm in the free market camp -- and for folks who desire/need such a service? Awesome, it's there. I do think everyone, including those who use such a service on occasion, would agree that they would be better if they didn't have to use it. {meaning that they would be in a less disadvantageous position}.

[CRFSaver]

Re: Payday Loans: What is your opinion?

Usurious rates that keep people in debt for long periods of time...

What is the typical size of these loans? Its normally a couple hundred dollars isnt it? I would agree with Userious if it was for large dollar amounts, for example buying a car but not sure if I agree with that on the smaller dollar amounts.

On payday loans I am not as concerned with them as I am other types of loans. Lets face it, with a payday loan you know what you are paying. You borrow 200 bucks and you pay back 250 bucks. Hmm, this is costing me 50 bucks. People dont go into those situations blind.

I would be more concerned with auto lending where there is dealer participation on the loan as well as the possibility of hidden fees and services you don't know you are paying for.

[PRICEPLUS]

Re: Payday Loans: What is your opinion?

CRFSaver,

The loans are not large for a person with a good paying job but I suppose that person would not need the services of a payday loan arrangement. I liken them to those stores that let you rent you rent and then eventually own their own appliances.

The people who take advantage of payday loans are usually very poor. They are usually not as savvy about loaning practices and they are preyed upon.

Loan sharks in the old neighborhood would take payments of 2 dollars on a twenty dollar loan every week when I was a kid. Most poor folks could get 2 dollars together but maybe not the twenty. You made no dent in the loan and the next week you would still owe the 2 dollars plus the original twenty. Some folks would pay the vig for months until they realized they were paying back a whole lot more than 20 dollars.

You see loan sharks are not in business to break your arm or leg. They want you healthy, working, and paying the points on the loan. The longer you are in debt to them the more money they make. Who does this sound like?

I despise those who take advantage of those who are most vulnerable!

Yeah, poor folks don't have many places to go for credit so they get taken advantage of! It just ain't right!

[PRICEPLUS]

Re: Payday Loans: What is your opinion?

Oh, as for car dealerships....I have seldom been to other places where I have felt the need for a bath when I left!

[Optsol]

Re: Payday Loans: What is your opinion?

Oh, as for car dealerships....I have seldom been to other places where I have felt the need for a bath when I left!

Amen!

[CRFSaver]

Re: Payday Loans: What is your opinion?

I think the only place I feel dirtier coming out of is furniture stores. You bring up valid point Priceplus, I just wanted to bring up the transparancy in payday lending versus other lending vehicles.

[shelbylovesmelby]

Re: Payday Loans: What is your opinion?

Payday loans are just plain EVIL! But people are gulable enough to use them & keep them in business. And the former banker in me remembers all the pay day loan stores calling to verify funds on accounts that were returned NSF. Many of those people just have checks for that purpose & pay their bills in cash (when grocery stores took utility pmts) or get money orders. And I'm sure that's partially why they charge such outragious fee's is to make up for the $ they can't collect & court costs.

Along the same lines there are the places where you can get a Auto Title Loan if you don't have a lien on your vehicle of course. But if they knew they could go to any financial intitution and get a loan againt their vehicles value as well (often recommended over a personal loan wich is usually double+).

But again I think these places pray upon people with lousy credit who just need a few $ to get buy til their next check. And folks who utilize the pay day loans constantly are usually teetering tward filing bankruptcy because they can't get out from under the payday loan cycle.

jmho

[Ima saver]

Re: Payday Loans: What is your opinion?

I have t o agree with Shelby. I would not go into one of those places for anything. I would starve first.

[ender513]

Re: Payday Loans: What is your opinion?

I see so many of my customer's with payday loans, and all the resulting problems (I work at a bank). It makes me really dislike the whole industry and how they do business (how many payday loan places do you see in upscale neighborhoods?).

On the other hand, anyone who has credit card debt can't really disparage someone who has payday loans. Credit cards aren't accessible to some people, and so they get themselves into other problems with debt that is accessible. I guess the saying "people in glass houses" applies to payday loans sometimes. That said, I still dislike the companies and worry about disclosure of fees.

The overall question here isn't so much about payday loans, but about debt and spending in general. I've seen lots of people get into problems with overdraft fees, or late payments for loans. It's not just payday lenders charging high fees.

[PRICEPLUS]

Re: Payday Loans: What is your opinion?

The credit card people extend credit right after a bankruptcy! Why? You are on the hook for the money at that point. Cash and carry should be the MO of most people most of the time.

29% interest because one of your other bills arrived a few hours late. 39 dollar late fees. Overdraft fees! CC companies aren't that far up the food chain as far as I am concerned. All the lenders want you hooked and paying big time, all the time!