Why NOT to do payday loans

Discussion in 'General Chat' started by kyleb, Mar 14, 2009.

  1. kyleb

    kyleb New Member

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    I want to advise you on payday loans. You should not do them.

    Although you do not see it, by making payday loans you are giving the loan provider an exorbitant amount of extra money. Let's see, shall we?

    Say I give you a payday loan of $200 for 2 weeks. I charge you 30 dollars as a fee. Do you usually earn $7,571 in 2 weeks? That's the same as working 433 hours each week at Ontario current minimum wage ($8.75 per hour as of March 31, 2008).
     
  2. Bottesini

    Bottesini Old Deaf Ranter Premium Member

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    That is true and good advice.
     
  3. Dodge Trucker

    Dodge Trucker New Member

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    And to top it all off...they can charge you HIGH HIGH interest rates!! I've heard they often charge 40 to 50% interest rates on some poor dumbass fools. So if you took out a $200 loan...you can expect to pay back $350 or more. NO ONE should EVER go to these stupid stores and ask for payday loans. Once you start, they will keep you for LIFE making payments. I have several friends who made the mistake of doing payday loans...and they REGRET it and are STILL trying to get out of it.

    If you don't have the money...SUFFER!! How do you think people back in the depression lived??
     
  4. kyleb

    kyleb New Member

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    Suppose you make a deal with me, stating that you will give me exactly 2 dollars. I will double the 2 dollars, and double the doubled money, each day until stopped. If you stop the doubling after 30 days, how much money must I give you? $2,147,483,648
     
  5. Dodge Trucker

    Dodge Trucker New Member

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    Your point in this is?
     
  6. smithj

    smithj Guest

    Hello Friends,

    What is no fax payday loans? Please provide me more information on no fax payday loan.
     
  7. smithj

    smithj Guest

    As per my previous post, I would like give you more specific information so any of you can help me. Actually I am looking for quick cash and someone has suggest me faxless payday loan for quick approved. But, before I can apply for the faxless payday loan, I need some information. What is the current interest rate? Is their any hidden charges? I visit some advertisement on internet and they says: Apply for No Fax PDL, No hidden charge. Is it true?
     
  8. diehardbiker

    diehardbiker Active Member

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    Payday loans are for suckers!

    Trust me!

    This is perfect legal scam in the United States! I can't believe this!
     
  9. kyleb

    kyleb New Member

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    Uhh...

    I'll need the amount you want to borrow and what the fee is. Then I'll explain it all to you.
     
  10. smithj

    smithj Guest

    Hello Friends,

    Thanks for your helpful reply. As per my previous post someone has informed me that, some payday loans are prohibited in some states and that means that if I am in one of those states and get a loan it would be with an unlicensed/illegal company. payday loan interest rates vary from state to state. Some are very strict while others allow almost any amount.

    Please suggest me if is their any other option available in payday loan except faxless payday loan. I apply for payday loan to help my friend. He lost his job in this recession period. He need 1500$ borrowed. Please help...
     
  11. Oddball

    Oddball Stay weird Premium Member

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    stay away from any payday loan places at any cost. Why not your friend apply for unemployment insurance?
     
  12. kyleb

    kyleb New Member

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    OK, $1,500 dollars borrowed.

    The fee would typically be between $225 and $450, so I'll pick a number in between that - $337.50.

    The fee: Over 14 days (2 weeks times 7 days), you would be paying $337.50 / 14 days = $24.11 each day. You would be paying $8,800.15 in fees over 365 days.

    $337.50 in fees for a 2 week loan is the same as paying 88 cents for each dollar borrowed. Dividing $1,500 by 88 gives $17.05.

    The extremes:

    $225 in fees for a 2 week loan is the same as paying 59 cents for each dollar borrowed. Dividing $1,500 by 59 gives $25.42.
    $450 in fees for a 2 week loan is the same as paying 117 cents for each dollar borrowed. Dividing $1,500 by 117 gives $12.82.
     
    Last edited: Mar 20, 2009
  13. smithj

    smithj Guest

    Hi kyleb,

    Thank you very much for valuable information. As per "Oddball" reply, I want to know more about unemployment insurance. So I can easily guide my friend for the same.

    Thanks,
     
  14. GarnetTigerMom

    GarnetTigerMom New Member

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    If you use pay day loans,, you have to pay them back it not worth it. They can be dirty business.
     
  15. Royale

    Royale Active Member

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    Yes only if they are loosely regulated.
     
  16. Foxrac

    Foxrac Well-Known Member Premium Member

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    Yup, I agree with that.
     
  17. marvin-r

    marvin-r New Member

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    as with any loan, the key to using payday loans, online or otherwise, is to do so very occasionally-- only when it's truly an emergency. When determining if it is best to apply for a payday loan online, consider your ability to repay it. Always know where the repayment money will come from before you agree to borrow any, or you can create even more problems for yourself.


    fast loans
     
  18. Bear

    Bear Active Member

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    Payday loan fees are usually not that high. Usually if you borrow 300 you end up paying back like 350-375 depending on the place. The PROBLEM with payday loans is that it turns into a vicious cycle of borrowing. These loans are targeted at the already very low income people. If you need to borrow from them just to make it through then my suggestion is dont. Cause then you will be continuously borrowing. If you cant afford it, simple dont get it. If you need money, simple wait till the next payday or borrow from friends who will work out a repayment with you.
     
  19. rockin'robin

    rockin'robin Well-Known Member

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    I dunno much about "Payday Loans"...but there are several businesses here that do loans for 30 days....say you take a loan out for $500.00 and within 30 days, pay back $554.00.....charging you $54.00 for the loan, which is cheaper than ur bank card or borrowing from the bank....

    They do not allow loans over $500.00, and ur monthly income must be a certain figure and ur credit-worthiness is also considered.

    The only way anyone should do this is if it's a dire emergency, and are able to pay back the loan the next month.....You could also borrow $500.00, pay back $554.00 in 1 month...turn around and borrow $400.00 and pay back $434.00 in 30 days...the charge lessens with the least amount of money you borrow, if you can't pay it all back at once.

    I do know of some people that have done this and had no problem, BUT..it's still risky!
     
  20. Smithtr

    Smithtr G.G.H.T Premium Member

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    you should be trust to honest and loan otherwise you are careful that is really careful..
     

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