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” !
Sure, they can, but the options will be very poorly designed because of the condition, not to mention the fees. When I bought my smartwatch, I also paid attention to the work status, I am unemployed officially, so i needed such service that would provide me loan. The store where I took loan has a large selection and good conditions. I chose the cash loans for unemployed and was very happy. I advise you to look for the right service.