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Posted: 4/2/2006 8:57:30 AM EDT
What's up with all the "Payday" loan shops? Seems like they might as well start putting them in Starbucks they're so common. Every town I drive through, you can't swing a cat without hitting one.

How many of you out there have ever used one, and how badly do they bend you over on the loan?

Just curious.
Link Posted: 4/2/2006 9:04:47 AM EDT
i used one once about 9 years ago....

30 bucks for every 100

yes sir.. 30%

i needed cash bad... needed it right then and there..,.

used it paid it 2 weeks later and never let myself get there again ..


Link Posted: 4/2/2006 9:04:59 AM EDT
I've used one a couple of times, never again. They charge a 512% annual interest rate. Yes, I'm serious.
Link Posted: 4/2/2006 9:05:36 AM EDT
It's legal loan sharking. Run away.
Link Posted: 4/2/2006 9:12:04 AM EDT
They prey on people who don't have the discipline to maintain a bank account, and are also used by check forgers and other criminals. Probably the only good they do for society is provide competition for black market loan sharks who might resort to criminal acts as a part of their business plan.
Link Posted: 4/2/2006 9:12:23 AM EDT
[Last Edit: 4/2/2006 9:13:55 AM EDT by PeteCO]
They are another indicator of a society with no financial competence anymore.

Not to brag or anything, but I keep $3000 in cash at my house and it NEVER goes below that number. This is for emergencies, in case my bank accounts were somehow inaccessible. I feel naked without it.

Now, I can bitch about this because I have indeed been there, years and years ago before I learned about money. IIRC it was like $60 to borrow $600 for a week. So they give you $600 and you pay them $660. The shameful thing is that I was making slightly more than double the US median at the time, no kids and my wife made about $20k back then - do the math. I had a HUGE gun collection, two new cars, and tons of stupid toys. And yet we lived in an apartment and our rent payments were almost always late, as were my car payments. I ran up over $15000 in credit card debt. Ate out a nice restaurants probably 5 times a week. What a disgrace that was.

Nowadays I make much more money, but drive used cars I payed cash for. I have no debt other than my house. I save more than 50% of my income. I look back on the time in life where I needed to scrounge for money, get payday loans for rent, and owed everyone money as a good thing. Without it, I'd be another middle-class dumbfuck who can't manage money. When the real-estate market makes a downturn (as all equity markets do), the people who refinance every three years to pay off the credit card bills (that they ran up buying groceries and paying the electric bill because the BMW lease was so expensive) are going to be well and truly fucked.

If you have over $1000 in car payments every month (soccer mom SUV and BMW could easily hit $2000), and don't save any money, living paycheck to paycheck, you are in a SERIOUS financial situation. This is not directed at the original poster, but it's more of a blanket statement.
Link Posted: 4/2/2006 9:14:11 AM EDT
Payday loans should be a last resort along with pawn shops. The rates will always be high but will vary from state to state and with more or less competition.

Probably $20-$25/hundred is more the average and when you compare that to stopping a bank NSF charge of $31.00..........................................



5sub
Link Posted: 4/2/2006 10:35:24 AM EDT

Originally Posted By draver:
What's up with all the "Payday" loan shops? Seems like they might as well start putting them in Starbucks they're so common. Every town I drive through, you can't swing a cat without hitting one.

How many of you out there have ever used one, and how badly do they bend you over on the loan?

Just curious.



Credit card interest is a better deal. A credit card cash advance is a better deal.

If you don't need it to be cash, just charge it on the card and take the first 30 days interest free.
Link Posted: 4/2/2006 11:07:41 AM EDT
I am at the WV/ Va state line and WV does not have these, but there are a bunch of them at the VA border. Conversly WV allows up to 30% per month for pawns, VA 15% so the pawn shops are all on the WV side.
Link Posted: 4/2/2006 11:14:24 AM EDT

Originally Posted By whoanelly:
They prey on people who don't have the discipline to maintain a bank account, and are also used by check forgers and other criminals. Probably the only good they do for society is provide competition for black market loan sharks who might resort to criminal acts as a part of their business plan.



how would a check forger use this business, to rip them off?
Link Posted: 4/2/2006 11:14:39 AM EDT

Originally Posted By SubnetMask:
It's legal loan sharking. Run away.



Yep...

Link Posted: 4/2/2006 11:18:23 AM EDT
If I was unemployed and wanted to start a biz, it's what I would be setting up.
I have a bud who has one and a pawnshop, he makes 5 times more profit with the check cashing than the pawnshop.
Link Posted: 4/2/2006 11:25:05 AM EDT

Originally Posted By armac:

Originally Posted By whoanelly:
They prey on people who don't have the discipline to maintain a bank account, and are also used by check forgers and other criminals. Probably the only good they do for society is provide competition for black market loan sharks who might resort to criminal acts as a part of their business plan.



how would a check forger use this business, to rip them off?



To cash checks and run away. No need to have an account which can be used to track them down. Of course some people try the same things at banks...
Link Posted: 4/2/2006 11:28:08 AM EDT
Loan sharks!! They should be shut down for their predatory practice.
Link Posted: 4/2/2006 11:43:05 AM EDT
Thats capitalism though, there's an obvious market for it (stupid/irresponsible people) don't blame the people for making a buck off the service.
Link Posted: 4/2/2006 6:49:45 PM EDT
Ran into this when I worked for the gov. Had at least one secretary there who did not have a bank account. Got her check from the gov, cashed it at a cashing place, used cash for everything. Weird.
Link Posted: 4/2/2006 6:59:17 PM EDT
Three words:

Manage your money.


and you won't ever need to "know" about borrowing money against yourself.

Link Posted: 4/2/2006 7:08:56 PM EDT

Originally Posted By shocktrp:

Originally Posted By draver:
What's up with all the "Payday" loan shops? Seems like they might as well start putting them in Starbucks they're so common. Every town I drive through, you can't swing a cat without hitting one.

How many of you out there have ever used one, and how badly do they bend you over on the loan?

Just curious.



Credit card interest is a better deal. A credit card cash advance is a better deal.

If you don't need it to be cash, just charge it on the card and take the first 30 days interest free.




In general people that use payday loans can't get a credit card to save their life.
Link Posted: 4/2/2006 7:28:01 PM EDT
they're for when you need money for crack before the next paycheck
Link Posted: 4/2/2006 7:37:43 PM EDT
LOL

Look outside any military post and you find zillions of them.
Link Posted: 4/2/2006 7:43:53 PM EDT

Originally Posted By SubnetMask:
It's legal loan sharking. Run away.



I needed the money, or they were gonna re-po my "rent to own" furniture.
Link Posted: 4/2/2006 7:45:10 PM EDT
scam scam scam. you're better off going to the mob. at least you can run from them and they don't have legal recourse against you
Link Posted: 4/2/2006 7:45:49 PM EDT
I've seen rates as high as 521.43% Avoid like the plague.
Link Posted: 4/2/2006 8:00:52 PM EDT

Originally Posted By AssaultRifler:
they're for when you need money for crack before the next paycheck



Most crackheads dont have checking accounts,think before you speak.
Link Posted: 4/2/2006 8:06:14 PM EDT

Originally Posted By Tanam:

Originally Posted By AssaultRifler:
they're for when you need money for crack before the next paycheck



Most crackheads dont have checking accounts,think before you speak.



yes but if they have a job say slinging burgers at a fast food joint they can get a high intrest loan using previus pay check stubs as proof of employment ot take out a car title loan.

Link Posted: 4/2/2006 8:12:39 PM EDT

Originally Posted By cyrax777:

Originally Posted By Tanam:

Originally Posted By AssaultRifler:
they're for when you need money for crack before the next paycheck



Most crackheads dont have checking accounts,think before you speak.



yes but if they have a job say slinging burgers at a fast food joint they can get a high intrest loan using previus pay check stubs as proof of employment ot take out a car title loan.




Not if you have insufficient credit history, i make alot more then a burger slinger,yet i still cant get a loan, no credit history is worse then a negative report,go figure.
Link Posted: 4/3/2006 3:51:27 AM EDT

Originally Posted By Tanam:

Originally Posted By AssaultRifler:
they're for when you need money for crack before the next paycheck



Most crackheads dont have checking accounts,think before you speak.



You dont a checking account in order to get a paycheck
Link Posted: 4/3/2006 3:52:50 AM EDT
None here; I have only seen them around military posts and in poorer areas of large cities.
Link Posted: 4/3/2006 4:11:40 AM EDT
i have done it in pawn shops in the late 80's.
i have used it once for my brother to get his car fix, which he did pay it the following week.

my sister-in-law got hook real bad in the these check cashing places. she got arrested for bouncing a check at one of them.

she was doing 3 different check cashing places at one time. write a check at the first one to pay the next one and then to the next one. she got so overwhelm that she said screw it and didn't pay the last one so she could break the cycle. she broke it alright after getting arrested. now she will not have a checking acct only a savings acct. but her husband still takes everything to the pawn shops circular saw to floor buffer.
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