Payday Loan Centres – Consumers Beware
When you are looking for a quick cash loan, you may be confronted by many reports saying that payday loans are a problem, and you need to avoid them as much as possible. While it can be true that some people may struggle to pay off the debt, and find themselves getting into a worse position, this is at least partially due to poor planning. People who carefully consider whether payday loans are the answer will usually find that there is no problem at all with their loan, and will usually return again and again to borrow small sums of money from these lenders.
The Problem with Payday Loans
The reason that some people may struggle with payday loans is that they simply do not understand the implications of the loan. They treat the lender as though they were a bank or credit card company, but while these lending companies might be satisfied with a slightly late payment, or perhaps a reason for not having the money immediately, payday lenders expect to be repaid by a certain date, and any defaulting on this set repayment will be punished severely. In order to manage a loan successfully, you need to consider whether you will be able to handle the loan properly. If you are doubtful about your success, you might want to consider taking out a different kind of loans.
The Problem with Other Types of Loan
This does not mean that the particular types of loan which are advertised by the reports are safe and sound. Credit Union loans, for example, are only usually available to people in certain circumstances, and if you borrow the money to pay off bills or credit cards, you may not be able to access the money when you really, truly need it. Other loans, often given through the government, are also difficult to obtain, and may take months to reach the borrower. This can be almost as bad as waiting for a bank loan, and really defeats the object of taking out a quick loan to solve immediate money worries. Your bank or building society are also not quick-lending solutions, and so when you really need money, and need it within a week or 10 days, then your only real alternative may be a payday loan. These reports can sometimes recommend that you take out a credit card loan in order to cover your payments, but these often have extremely high charges, and you will have to repay the amounts for months to come. Payday loans are a cheaper and faster alternative to any of these.
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royg6852 wrote on March 28, 2010
I don’t know about everyone elses experiences but we got $300 from cashloancity com and had it paid back after one extension. My wife and I couldn’t have been more pleased with the service.
missjudi1 wrote on March 28, 2010
After listening to your ranting and raving, Ive discovered that you’re a windbag who is grossly misinformed. If you spent a few minutes talking to one of the owners of these businesses, you’d see that your showing off your ignorance. Fortunately you being an idiot, probably wont HURT anybody, but there is a reason you’ve never been elected president. Do the world a favor, KNOW what your talking about before you spew your stupidity all over the internet for all the world to see!
checkngoanswers wrote on March 28, 2010
The only way to reach the much-hyped triple digit APR is to take out one advance and continue to renew the same advance every two weeks for an entire year. State laws and industry best practices do not allow this to happen.
Payday loans are a viable low-dollar, short-term loan that are cheaper than overdrawing your account, paying bills late, etc. Watch the attached video response.
wolverineeeeeeeee wrote on March 28, 2010
what are you being difficult about. You do make the desision yourself to loan with 400% interest. If every american starts stopping doing things on credit then we would not have your problem now. Save for something you want to buy.(credit cards get x% on what you buy so if you use em youre not helping)
haroldsays wrote on March 28, 2010
I do understand what you are writing about. Unfortunately there are people who do take out the loans and default on them. That certainly is not right. Thanks for sharing your thoughts about this matter.
spointman78 wrote on March 28, 2010
I work for a Payday loan store and I can tell you the #1 reason for the interest being so high. Most customers take out the loan, and never come back. We’ll then have to deposit the check, and 99% of the time get it back for NSF (Non Sufficient Funds), SP (Stop Payment), or account closed. A lot of the people also will take the money and then file for Chapter 7 bankruptcy. If everyone was honest and paid back, the rates would be way lower.
dragoonmaster1781 wrote on March 28, 2010
ya its $28/item at my bank.
DaimajinStoneGod wrote on March 28, 2010
the service fee is generally $10-15 per $100 borrowed not including the 400% interest. A $650 loan can turn in to a $1650-$1950
DaimajinStoneGod wrote on March 28, 2010
There is no such thing as a debtors prison. I am currently trapped in the repetitive cycle to the tune of $900 a month. I just quit paying.
kmcl11 wrote on March 28, 2010
How are these calculated
xmikeandlaurenx wrote on March 28, 2010
My wife and I got suckered into these payday loan sharks when we were young. Nobody should ever use these sharks for help.
Gb755c wrote on March 28, 2010
You have a great gangster/Godfather immitation
astrolifter wrote on March 29, 2010
Lets all get together and pray that everyone that owns a payday loan company dies and goes to hell.
haroldsays wrote on March 29, 2010
Somewhere out in the midwest I believe. He should be out of jail by now. Although, I am not sure how he can help people with the Payday Loan situation. Take care! Harold
jafoalert wrote on March 29, 2010
Where’s Jack Kevorkian when you need him?
haroldsays wrote on March 29, 2010
I think that being in the payday loan business could be a great idea if you charge reasonable interest rates and you give people a reasonable time to pay the loans back. Truth is most people can not afford to pay the loan back in one pay period and that is where people get in trouble. You could develop your business in such a way as to make money and help people at the same time. Best wishes to you with your business idea. Take care! Harold
Ratbeeitch wrote on March 29, 2010
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.
haroldsays wrote on March 29, 2010
Thanks for posting your comments. I am glad to hear that you experience with a payday advance center has been a positive one. You make some good points about the situation concerning payday advance centers. Thank you. Harold
yekyrneh wrote on March 29, 2010
zacw20 is absolutely right. At most payday loan stores, if you pay back the loan on your next payday, like you’re SUPPOSED TO, you only pay $15 for every $100 borrowed. That’s 15% interest – NOT 400%! You NEVER pay the annual percentage rate, because it’s NOT an annual loan. PAY BACK THE LOAN WHEN YOU’RE SUPPOSED TO, and you will NEVER be ripped off by a reputable payday advance business! I am an occasional payday advance customer, and have NEVER been ripped off!
haroldsays wrote on March 29, 2010
I hear ya on that. I know what you say is true and it is a disgrace. I guess I will have to address that in a future video and on my consumer blog. Thanks for reminding me of what most banks do to their customers when it comes to bounced checks. Thanks! Take care! Harold
spudro61 wrote on March 29, 2010
bounce a check and pay up to 2000%apr, harp on that harold
spudro61 wrote on March 29, 2010
hey harold, bounce a check for 10.00 and pay 35.00 in nsf fee’s, Thats about 2000% apr.thats worse than pdl fees. harp on that
haroldsays wrote on March 29, 2010
As in any industry there are companies that operate ethically and serve a good purpose. It sounds like yours is another one in the payday loan industry that does. There are however many payday loan centers and companies that do not. And you are right about it being a short term loan situation for a person in need. The problem is that many people who use the service can not repay the loan right back and need to keep making the interest payment over and over again and that leads to problems. TY!
krenda1022 wrote on March 29, 2010
I work at a payday loan company and we also charge only 15 dollars per 100, people come to us because they have no other options the banks wont approve them even though they have jobs. The people that do the loans over and over again are using the loans the wrong way! These are short term loans not long term. What would you do if you needed work on your car to drive to work and only needed a few hundred dollars and didnt have it? These companies also employe thousands of americans!