"Pay day" loans exacerbate housing crisis - Yahoo! News

Not that I'm saying credit cards are good, they're not, but these are prue evil.

In a small town near ours we noticed that a 3rd one of these PayDay loan businesses are going in within the last year. These things need to be outlawed or people need to wise up!

wow...I have never heard of "Payday loans" before I read that. Thanks for sharing. I'm very glade that my mortgage payment is cheaper then most people's rent! But that really makes me freak-out a little.

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SAHM to MacKenzie 09/10/03, Brooke 09/21/05, KayLynn 04/23/08 and WIFE to Fred 5 years!
~Live your life until LOVE is found...Or love will just get you down~

These places are popping up all over in our town. They should be outlawed! I get so upset when I see people - usually young women walking into them. A couple of years ago, I read that young, single moms are their biggest customers.

I've never used them. But it seems like a vicious cycle.

Ah yes...the evil of the evilest in "Lending". DH and saw a commercial for one of these places a few months back....now we have seen them all over the city, but I have never seen them advertised...and thanks to the power of the DVR we paused the "fine print" at the end of the commercial that they must legally disclose. This place had an interest rate of 200% (some are higher!!). That is CRAZY!!

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Does Money Matter?

Ive never used one personally, but i know people who have. The interest is crazy and it starts a constant cycle because the payments are very high. So, you continue to be short on cash and need to keep taking out these loans.

WOW! I've never heard of payday loans either. I can't believe how they prey upon people like that. Those interest rate are totally unbelievable!

I'm glad that some states are trying to get a cap on the interest rates (or already have one) and am surprised that CA doesn't have a cap in place yet.

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July food budget: $500.00
Eating out spent: $85.00
Groceries spent: $248.12
Total spent: $333.12

My SIL uses them, but she tends to have different men pay them off (I suspect that is a whole other thread ) anyway -- I thought many states had placed some laws governing these types of places but according to the interest rates in that article?! Those laws evidently haven't done much good. I know Washington State, awhile back, made it so you can only get a small amount but I don't think that really helps because, according to my SIL, you can just go get the same amount at different stores. It is disgusting what people are willing to do to one another.

These things are unfortunately a dime a dozen around Marine bases. When my husband and I were stationed in North Carolina it seemed there was one on every corner. The Marines that used them were usually but now always the Marines that were E-3's and below. I felt bad for them because then they would have to pay a crazy interest amount of top of what they borrowed. I think those things are pure evil.

I have to admit, I did fall ignorantly into this vicious cycle a few years back. We were short on cash one week due to a vehicle repair, so I took out what I thought would be an easy to pay back amount. But then payment time came, and we had another unexpected expense that week, so I couldn't even afford the interest payments on the first pd loan. So, I had to take out another to pay on the first one. On it, not pay it off! So then I had two loans out, with payments of interest alone about $200 each. The cycle continued for months, totalling 6 payday loans, until I finally gave up and quit paying them. I settled 4 of them several months after I quit making the biweekly interest on them, and the other 2 went to court and ended up getting garnished out of my paychecks. It was not a fun time, cause a lot of cash flow stress, as well as emotional stress b/w dh and myself. Please take my advice, NEVER take one of these out. The interest is ridiculous, by the way. Here in WI, their fees run anywhere from $20-$30 for every $100 that you borrow. So, if you borrow $500, every 2 weeks you owe them a minimum of $100-$150 in interest alone. Anything over that and you are chipping away at your loan amount, but the $100-$150 MUST be received. Its horrible ladies, please stay away!