Payday loans- opinion?

Hey!

Recently I have notice that more and more people use payday loans to get through the rest of the month and it is alerting to me, because more and more advertisements is been shown on media about these loans.

I have an experience where my friend was doing such a practice and it create and addictive habi, that if he has no money at the moment, he can get it right away by the loan. Of course the percentage that he pay to return the loan is riddicules 300%, like really?

The concern to me is that society will be irresponsible and better will take a loan than save money!

What are your thoughts about payday loans, please share I would love to hear them:)

If a pay day loan is really 300% interest then he would be better off borrowing from the mafia, haha.

Seriously though, borrowing money with super high interest rates is a losing game. I don’t know anything about this person but if possible he would be much better served by cutting out any expenses he can find to bridge the gap, rather than borrow. He would end up with a lot more money as well since we wouldn’t be paying those astronomical interest rates.

Hi CA, The incidence of “Payday loans” appears to have gone parabolic since the debacle of the Fraudulent activities of the major banks caused the 2008 Crash.

As always, when the “Regulators” involve themselves, only the poor and disenfranchised suffer.

The fact that the crash was caused by unscrupulous banks parcelling up “Sub-Prime” (Very risky) mortgages and selling them off as “investment parcels” was “Addressed” by making credit harder to get, when a few of us believe it should have been addressed by simply saying anyone who was sold loans they could not afford to repay, should have legal protection and simply having those loans wriiten off at the lenders expense.

However, the criteria got so stupid that a great many people simply were unabe to access credit from mainstream lenders.

Now these people still have needs and shortfalls in their lives and the “Payday lenders” stepped in to bridge that gap (At huge expense to the “Poor” )

Dirty business, dirty causes. Stupid responses to dirty underhand and probably fraudulent Banking practices. - But who suffers ?

Those of us whoo have been forced to “Bale the banks out”, and now have to pay high charges, massive interest rates on overdrafts and Credit Cards and receive derisory interest on our savings from these same institutions.

And of course the Poor buggers, who cannot get credit in any other way than the “Payday lenders” !

Don’t borrow money, especially when there’s such an interest involved.

Not so easy when the kids are hungry and the bailiffs at the door !

Trust me, I know. But borrowing money puts you in bigger trouble in the long run. :frowning:

For me it isn’t a good option,in general for people who has monthly salary…

Risky business.

I wanted very much to open my business related to different types of jewelry, but of course, you need a lot of investment in this thing.

Back in 1994, saw a business opportunity, I was in my mid 20’s… Needed cash fast… Payday lenders didn’t exist, had just bought a house so banks wouldn’t loan me anything, not even a credit card.

Had no option than to use what was in the day an opportunistic credit provider (now GE Finance) and borrowed $2500 (~$5000 in 2021) at 25% which at the time was expensive money!

Sold my treasured Suzuki Katana Motorbike and started the business…

By 1999, business was turning 7 figures. Sold the business in 2011 and semi retired … at 45!

Not a bad return for $500 interest… If you are young enough, energetic enough, passionate enough to do something with borrowed funds that has the potential to scale you up… It’s well worth the risk!

True Fact: “Most people at the end of life that are asked what they reflect back on and regret… It’s not what they did do… It’s what they didn’t do… !”

1 Like

As for me, you need to choose a bank wisely and study the information about each in detail, and not create a survey on the Internet. I myself, when I wanted to buy a car, asked my friends about some good bank. Everyone advised different things. I already thought about taking a loan from a bank that is located near the house, but when I looked through this site edullinenlaina.com, I realized that if I had chosen this bank, I would have overpaid twice in the end. People, choose your bank wisely. Then you complain that the banks are cheating you for money.

I’ve realized that people with bad credit are usually lower middle class or poor, so they have no choice but to use programs like payday loans, take out loans with extremely high interest rates, open credit cards with yearly charges + high interest, etc.
Assuming that most people whom would need a payday loan fall into this category, there may be times where they feel cornered and have no other option, especially when it comes down to living payday to payday. This is why these things are so popular - many have no other option or feel that way; however, it isn’t financially responsible to continuously take out these loans and to continue being crippled by the interest. I could see doing it in absolute desperate measures, like in the case of pending eviction or having no food, but would not recommend doing it in any other case. Those that are financially irresponsible may turn to payday loans as a way to get things that they don’t need and only want, which never ends well.

I agree with you

Payday loans might be better than any other kind of loan because the loaner only gives a small amount of money. The person who took it should give it back as soon as she gets her paycheck.