18 Comments »

elaine said:
I think it makes more sense to teach Personal Finances rather than Geometry/Calc/higher level math, as most people would benefit much more from learning about interest rates, savings accounts, Roth IRAs, credit cards, mortgages, etc.
Payday advance companies will always exist as long as the market proves there is a need for it. There is a need primarily because children aren't educated in how to manage their income versus their expenses.
# 21 October 2009 at 4:08 pm
Amber W said:
I'd ask family or friends before I'd pay the outrageous fees those places want.
Have you considered evaluating the junk in the garage or your closets that you could put up on Craigslist.org and sell to raise cash you won't have to pay interest on?
# 21 October 2009 at 4:31 pm
WPMixer said:
You mentioned payday loans “cost” Americans $4.2 billion in fees. But in 2006, consumers spent $4.2 billion in ATM charges to withdraw their own money. They paid an estimated $22 billion in NSF fees to banks & credit unions, and banks collected an estimated $10.3 billion for overdraft protection. Businesses charged an estimated $57 billion in late bill payment fees. And credit card interest cost consumers more than $87 billion.
Watch the attached video for APR comparisons.
# 21 October 2009 at 3:22 pm
Wordpress said:
economist Donald Morgan:
Who then benefits from payday loan bans? Credit unions, for one, notes Morgan. He says interest rates on overdrafts charged by credit unions and banks can exceed 2,000 percent, dwarfing the high interest rates on payday loans. Credit unions, he adds, have been especially hurt by payday lenders cutting into their overdraft fees.
# 21 October 2009 at 4:18 pm
Shane said:
I use to loan here http://snipurl.com/if7j4
One of the fastest ways to get loan with bad credit, would be with a payday loan
You can get about $1500 in 2 hours just applying for a quick cash loan there.Fast approval and Low fees, faxless, they didnt care about my bad credits
# 22 October 2009 at 1:53 am
Free Blog said:
the claim of APR as high as 390 percent disguises some important caveats. To reach this APR, the consumer would have to roll the loan over repeatedly. This scenario is unlikely, it says, since rolling over these loans is illegal in 22 states and severely restricted in eight others.
# 21 October 2009 at 7:20 pm
tucsondude said:
I would never allow myself to get into the trap of using them. That is why they are considered evil because people have used payday loans as a way to pay for their lives from one paycheck to the next. And that is not what they are meant for; they are short-term credit establishments.
But there are people out there who do not have a stable income and, let's face it, there are some stupid people out there. And that is why I think some regulation needs to be made. But I also believe that people need to accept some personal responsibility for their money and lifestyle decisions.
# 22 October 2009 at 8:39 am
nacao said:
I am considering getting in the payday loan business. However with all theses complaints, and countless states wanting to take action against them, I am getting skeptical. But I don’t understand why the industry is cutting its own throat. If they continue the way they are going they will be stifled out of business by government regulation.
Come on guys, clean up your act before the government does. Maybe they feel that the end is near and they need to make their money now.
# 22 October 2009 at 2:20 am
Lauren said:
Honestly its not something I would recommend often and it can be a lot of interest payments. But maybe theres no alternative. Best of luck.
# 22 October 2009 at 10:17 am
JediMaster said:
People who use pay day loans probably can't get credit anywhere else due to damaged credit and had something come up that needed to be paid right away that had they an emergency fund would have covered (flat tire, unexpected bill, illness). People who are using these types of places are probably already living paycheck to paycheck already so that they'll never be able to get out of the cycle of the pay day loan. States that allow people to have more than one pay day loan out at once really open them self to trouble, because then they'll start using one to pay the other and not really pay off either. Not to mention the fees are steep, but if you can't get help anywhere else…they are a better choice than what the bank charges you for over the limit and overdraft fees. I think they have a legitimate place in our society, although not pretty. It's a nature of the financial envirnoment right now. It's really hard to get up out of it.
# 22 October 2009 at 2:57 pm
psychic said:
someone who was in dire need, disabled, facing life on the streets or death without medication…have a heart, my government is cruel, i did not choose to be born here!
# 22 October 2009 at 2:41 pm
Blogger said:
The notion that $793 is paid for every $325 loaned is deceptive. It suggests that an individual takes out a single loan of $325 and pays it off along with an additional $468 interest. In fact this number is based on an assumption that a borrower receives a $325 loan and pays a fee of $52 nine consecutive times, piling up $468 in interest before the borrower is able to pay off the principal. This is precisely the type of rolling over that is widely limited or prohibited by law.
# 22 October 2009 at 5:04 pm
Dawn L said:
I wouldn't do this. Why spend unnecessary? You are betting on receiving something that has yet to come. What would happen if something goes wrong for you? This is like writing a check and not having enough money in your account to cover it.
# 23 October 2009 at 12:42 pm
Yahoostar said:
By my experiences, and alot of serious research, you should only work with established, land-based, payday lenders. Many of them also have on-line sites. Also, make absolutely certain that you are dealing with a member of CFSA. CFSA has strict rules and regulations that their member lenders have to follow, these rules and regs are there to protect you, the borrower.
Additionally, do not, never ever, borrow from more than one payday lender at a time. That is exactly how many people get into trouble with payday loans, by over extending them selves beyond the qualified amount given by a lender. Too many of these people then accuse and blame the payday loan industry for creating their troubles, when it was their decision, that they made, to over-extend themselves.
One of my personal favorite lenders is http://www.moneytreeinc.com
Also, research http://www.cfsa.net to see why that is so important.
# 23 October 2009 at 2:01 pm
jrvjeo said:
The first thing you must do is to get a grip on your spending. Payday loans should only be used for a dire emergency. If you get a payday loan before you've paid back a previous one you're falling into a debt trap.
OK – so what do you do? Take all your credit cards except for the one with the least amount of credit left and cut them up. It doesn't matter if you owe money on them: you'll still have to repay them but at least you won't add to your debt. Use the one left only if you absolutely have to. Leave it at home: use cash for everything. Do it now.
If you absolutely cannot manage to repay your loans from your salary, then consider debt consolidation. This doesn't make the debt go away, it just smooths it over a longer period. But you must resolve not to use it as an excuse to get into even more debt because that could land you in bankruptcy.
You say you're in a hole. You know what they say? When you're in a hole, stop digging!
Good luck.
# 23 October 2009 at 10:02 pm
rails said:
I enquired about this in Australia but the money come out of America at a rate of 75% on a $250 loan, what wanker would do this.
# 24 October 2009 at 8:36 am
guzen said:
Get into the industry, I’ll be happy to take your money and not pay it back you greedy scum.
# 24 October 2009 at 8:41 am
WPBlog Shop said:
what about the predatory lending of banks? What is the APR on a bank overdraft? What about Utility companies? What is the APR on a late fee? Credit Card Companies? They have been getting away with it for years. PaydayLoan companies are nothing compared to Utilities, banks and credit card companies.
# 24 October 2009 at 10:48 am

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

Name (required)

Mail (will not be published) (required)

Website (optional)

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.