I am really hesitant to jump on the anti-payday loan bandwagon.
Sometimes people need quick cash, and it’s an easy option which doesn’t require messing with one’s credit rating, or involving any of the major credit rating agencies or banks.
It’s just easy, quick, and fairly anonymous. Yes, it can be painful, but it’s an option. I’ve used it to SAVE my credit rating. It was expensive, but I know those who’ve used it as a tool to save their good credit rating when they might otherwise have a ding on their regular credit.
The big banks love their usurious fees and high interest rates, too, and they’d LOVE for payday lenders to go out of business.
I’m suspicious that shutting them down would suit the crony capitalists just fine.
Those interest rates seem usurious to me (I pay mine off every month, so no interest payments for me).
Other things which can save a tremendous amount of money:
Purchase used vehicles. The depreciation is smaller, and if cheap enough to avoid financing carrying full coverage insurance is optional instead of demanded by the bank. In areas where liability only coverage is available, the savings between no interest and the cheaper insurance may well be enough to buy your next vehicle over the life of the one you drive.
Rent is due in ten days, and the car breaks down today.
Living paycheck to paycheck, there is often too much month at the end of the money.It all falls apart for the lack of $300.00, right now!
Whether you have no credit or bad credit, no bank is ever going to give you a small loan, short or long term, that allows you to plow anything into savings.Not worth their time, and also counterproductive. They would prefer that you bounce checks, and pay their fees.
A payday lender charges an upfront fee of 10% and $1.00, and will stretch that repayment out for three weeks.Problem solved.
So...rent gets paid on time, absent the $5 - $75 a day late fee.(yes-that is the legal lease penalty rate spread-read the fine print)
Car gets repaired, avoiding the loss of income due to missing hours.
No checking account or late “fees” that are even more punitive. No possibility of police/government “criminal” involvement.
A single “insufficient funds” checking account charge would be a minimum of $32.00.
So...using the payday lender saves $1.00 in banking fees, and allows you to not fall any deeper in debt.
Sue me if I waste the $1.00 on a lotto ticket!
It's a frickin bargain!
They will either go there, or go to Vito.