yeah it's not fun and can be pretty scary but sometimes the options are all bad and you just have to do the best you can.

Honestly the best thing most people can do in those situations is swallow their pride and ask family (or friends) for help.  Failing that, getting a cash advance from your boss or from a credit card.  Or even selling some of your belongings.  My wife and I were very fortunate to have a good friend who was able to help us.  My kids practically consider her an Aunt.  I hated accepting help.  I'm one of those people who won't ask a store clerk where something is.  But I'm glad I didn't turn her down because I had too much pride.

 

What do you mean roll over? When I used them you HAD to pay it back the next paycheck or it was a collection issue after that. Then you had to wait 24 hours until you could take another one out.

 

Let's say you take out a $500 loan to get your car repaired.  They charge you let's say an $85 fee for taking out that loan.  That doesn't seem bad at all.  I meant hat's 17% interest.  No problem so far.  But let's say it takes you four months to be able to pay back that loan.  Each time you roll it over to another two weeks.  You now have paid $680 in interest for a $500 loan.  (A total of $1180, so I'm not being confusing here. Borrowing $500, and then paying $680 back would be reasonable)  

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I was wrong about Trent Baalke. 

Honestly the best thing most people can do in those situations is swallow their pride and ask family (or friends) for help.  Failing that, getting a cash advance from your boss or from a credit card.  Or even selling some of your belongings.  My wife and I were very fortunate to have a good friend who was able to help us.  My kids practically consider her an Aunt.  I hated accepting help.  I'm one of those people who won't ask a store clerk where something is.  But I'm glad I didn't turn her down because I had too much pride.

 

 

Let's say you take out a $500 loan to get your car repaired.  They charge you let's say an $85 fee for taking out that loan.  That doesn't seem bad at all.  I meant hat's 17% interest.  No problem so far.  But let's say it takes you four months to be able to pay back that loan.  You now have paid $680 in interest for a $500 loan.  (A total of $1180, so I'm not being confusing here. Borrowing $500, and then paying $680 back would be reasonable)  

 

But that's not how payday loans work at all. They limit what you can borrow based upon your paycheck, so if you make $300 a week you can only borrow up to $300. To use your example if you needed $500 so long as you didn't have any other loans and you made at least $500 every paycheck they would lend you $500 but you write a check for $555 (it's a standard $50 for $500 at all of them the "state fee" ranges from $4-$5  at the 6 different companies I've used in the past) and on your next paycheck the entire $555 is due. There's no taking a month to pay it off, it's literally due on your next paycheck then you have to wait 24 hours to take out any other loans. The amount is restricted based on what your paycheck is obviously if you only make $300 a paycheck they won't loan you $500.

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But that's not how payday loans work at all. They limit what you can borrow based upon your paycheck, so if you make $300 a week you can only borrow up to $300. To use your example if you needed $500 so long as you didn't have any other loans and you made at least $500 every paycheck they would lend you $500 but you write a check for $555 (it's a standard $50 for $500 at all of them the "state fee" ranges from $4-$5  at the 6 different companies I've used in the past) and on your next paycheck the entire $555 is due. There's no taking a month to pay it off, it's literally due on your next paycheck then you have to wait 24 hours to take out any other loans. The amount is restricted based on what your paycheck is obviously if you only make $300 a paycheck they won't loan you $500.

 

Yes, that is how they work.  


 

 

 

enerally, it means you pay a fee to delay paying back the loan. This fee does not reduce the amount you owe. If you roll over the loan multiple times, it’s possible to pay several hundred dollars in fees and still owe the amount you borrowed. For example, if you roll over a $300 loan with a $45 fee three times before fully repaying the loan, you will pay four $45 fees, or $180, and you will still owe the $300. So, in that example, you would pay back a total of $480.
 
Some payday lenders give borrowers the option to roll over their loans if they cannot afford to make the payment when it’s due. However, many states limit or ban payday loan rollovers. 

Source: http://www.consumerfinance.gov/askcfpb/1...-loan.html

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I was wrong about Trent Baalke. 

Yes, that is how they work.  


 

Source: http://www.consumerfinance.gov/askcfpb/1...-loan.html

 

So "many states ban payday rollovers." It seem like you are just living in the wrong state, and Eric isn't.

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"Why should I give information to you when all you want to do is find something wrong with it?"

So "many states ban payday rollovers." It seem like you are just living in the wrong state, and Eric isn't.

Payday lenders have found ways to get around rollover bans.  Just like they've found ways around many other state regulations.


 

 

 

CRL’s research shows that rollover bans fail to stop payday lenders from trapping borrowers into back-to-back loans, which are simply rollovers by another name.   “When rollovers are banned, industry simply replaces them with back-to-back loan flips that continue to ensnare people in long-term debt carrying an annual percentage rate of 400 percent,” said CRL senior researcher Leslie Parrish. “Payday lenders know this and that’s why they support rollover bans.”

http://www.responsiblelending.org/media-...-trap.html

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I was wrong about Trent Baalke. 

Yes, that is how they work.  


 

Source: http://www.consumerfinance.gov/askcfpb/1...-loan.html

 

Yea in Florida you can't roll them over you have to pay back the one you take out then wait 24 hours. If you don't payback they cash the check, if it bounces then you have a collections issue.

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Payday lenders have found ways to get around rollover bans.  Just like they've found ways around many other state regulations.


 

http://www.responsiblelending.org/media-...-trap.html

 

That's not predatory lending they make you close out one loan and then wait 24 hours to take out another loan. How is that different then a credit card giving you a fresh balance after you've made a payment. With credit cards if you pay you get access to a new line of credit instantly with pay day loans you have to wait 24 hours?

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here is a link to the laws state by state, it's regulated at the state level.

 

http://loans.org/payday/studies/state-laws

 

Most states the limit is $500 and it clearly states the terms are from 10-30 days (covering a pay period) I don't get it, how is this worse then a credit card with 30% interest and $95 annual fee's that's the only option most people taking out payday loans would be allowed. Or a secured card?

 

just to put some numbers down if this same person used a credit card with the 30% interest for the $500 and made the minimum payment they would pay $510 in interest before paying it off

 

http://www.bankrate.com/calculators/mana...lator.aspx

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here is a link to the laws state by state, it's regulated at the state level.

 

http://loans.org/payday/studies/state-laws

 

Most states the limit is $500 and it clearly states the terms are from 10-30 days (covering a pay period) I don't get it, how is this worse then a credit card with 30% interest and $95 annual fee's that's the only option most people taking out payday loans would be allowed. Or a secured card?

 

I've personally never taken out a payday loan. I'm very careful about interest rates.


 

But if someone really needs one, it can be a lifesaver. I don't see how shutting them down is good for those who need them. If you have a long term problem rather than a short term cash-flow problem, then payday loans are not the answer.

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"Why should I give information to you when all you want to do is find something wrong with it?"

I've personally never taken out a payday loan. I'm very careful about interest rates.


 

But if someone really needs one, it can be a lifesaver. I don't see how shutting them down is good for those who need them. If you have a long term problem rather than a short term cash-flow problem, then payday loans are not the answer.

 

I would've been in trouble without them a few years ago. I had just gone through a foreclosure my credit was in the tank so no Credit Cards, I was only making $10.15 an hour working two part time jobs with a family of 6. We where in a small 2 bedroom duplex barley barely paycheck to paycheck, there is no family or friends to loan us money. Something came up I had to use payday loans for about 6 months, sure it was expensive but the alternative was don't pay the rent and get evicted?

 

We got through it, the credit is turned around we have a new home we bought last year and financially I'm back on my feet. But taking away what little help there was while I spent my time in the economic slums would've just made the climb back out all that much harder.

 

I do know that some people use it improperly as a means to spend a paycheck before they get it, now that's where they get in trouble. But that's a personal responsibility problem not the institution offering help to low income no credit consumers. Sure as hell won't find banks offering that kind of help.

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Yes, progressives DO want to take land. The believe that land is a national resource that should belong to all people. "Land Reform" is a central tenet of the party since the Georgism the 19th century. If it's not outright confiscation then its a Land Value Tax where you either develop your land the way they want or you get forced by taxation to sell. It's also why they've taken millions of acres out of the private sector the last hundred years, because they don't think land should be a private property. Of course Boudreau well be along to tell us it just ain't so, so YMMV.

If I recall, our national parks were land grabs by a republican president.


That turned out pretty good for our nation.


I just wonder when we've decided that our country would be better off without the federal portion of the Constitution?


Is bureaucracy bad? At times- of course. But you don't throw the baby out with the bath water...

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I would've been in trouble without them a few years ago. I had just gone through a foreclosure my credit was in the tank so no Credit Cards, I was only making $10.15 an hour working two part time jobs with a family of 6. We where in a small 2 bedroom duplex barley paycheck to paycheck, there is no family or friends to loan us money. Something came up I had to use payday loans for about 6 months, sure it was expensive but the alternative was don't pay the rent and get evicted?

 

We got through it, the credit is turned around we have a new home we bought last year and financially I'm back on my feet. But taking away what little help there was while I spent my time in the economic slums would've just made the climb back out all that much harder.

 

I do know that some people use it improperly as a means to spend a paycheck before they get it, now that's where they get in trouble. But that's a personal responsibility problem not the institution offering help to low income no credit consumers. Sure as hell won't find banks offering that kind of help.

Nobody every pays me in barley 

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Nobody every pays me in barley 

 

ha I didn't even see that one, damn public education.

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If I recall, our national parks were land grabs by a republican president.


That turned out pretty good for our nation.


I just wonder when we've decided that our country would be better off without the federal portion of the Constitution?


Is bureaucracy bad? At times- of course. But you don't throw the baby out with the bath water...

 

No, you drain the tub of the putrid, filthy, disgusting water and you put in warm, clean, new water.

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“An empty vessel makes the loudest sound, so they that have the least wit are the greatest babblers.”. - Plato

The thing to do is look at the deeper problem as to why "payday loan" companies started up and are in business.  The people that use them, in most cases are people that were either irresponsible, or had something come up where they need cash immediately.  People that use these places have poor/no credit, so the risk is very high that they will default on their loan, thus the high interest rates.

 

Over-regulation of these companies to force them to accept a lower interest rate would result in most, if not all of them closing up.  Companies won't take the risk and/or lose profit.  This leaves a segment of the population that have a need to use these kinds of companies to have nowhere else to turn.

 

Then consider the scenario where the government backed the loans if the interest rate was brought down closer to a conventional credit card.  Or say the government backed loans to conventional banks if they took on risky loans such as these.  What you have is in essence what the "housing bubble" was.

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There are 10 kinds of people in this world.  Those who understand binary and those who don't.

I can tell a whole bunch of people that have no clue how payday loans work are chiming in. They do not have high interest rates, those advertised rates of 300% interest only apply if someone takes a loan out on every paycheck for an entire year then they would have paid that high 300% interest rate over the year. The individual paycheck loans are from 10-15% of what is borrowed due in 1 pay period.


Hell you can't even get a secured card with 15% interest unless you have decent credit.

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I can tell a whole bunch of people that have no clue how payday loans work are chiming in. They do not have high interest rates, those advertised rates of 300% interest only apply if someone takes a loan out on every paycheck for an entire year then they would have paid that high 300% interest rate over the year. The individual paycheck loans are from 10-15% of what is borrowed due in 1 pay period.


Hell you can't even get a secured card with 15% interest unless you have decent credit.

 

They just, like, parrot what their Progressive masters tell them man...

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“An empty vessel makes the loudest sound, so they that have the least wit are the greatest babblers.”. - Plato

They just, like, parrot what their Progressive masters tell them man...

Dang, pot you have been all over the place lately. 

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Dang, pot you have been all over the place lately. 

 

It was my best impression of you guys. Must not translate well over these dang intertubes.

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“An empty vessel makes the loudest sound, so they that have the least wit are the greatest babblers.”. - Plato