Pay Day Loans

crankcall

crankcall

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So 1st , I've never used or needed one. I'm listening to a man interviewed on CTV news, he owns a small engine shop , needed some medical help and borrows $4500 from "pay day loans" , five yrs later he finds out he owes $3790 of the $4500. He pays $200 a month , $156 of which goes to interest on the loan. New gov't rules cap predatory interest at 35%, but older loans are not retroactivly adjusted and many are out there at almost 45% .
A. How stupid (desperate?) would you have to be
B, How terrible is this guy at running a small engine shop?
C. Who would sleep at night with a spiral like that

The loan , which was actually written as an unsecured lined of credit was sold to DirectLend who then sold it to AllianceFinance. What an industry .
 
crankcall said:
So 1st , I've never used or needed one. I'm listening to a man interviewed on CTV news, he owns a small engine shop , needed some medical help and borrows $4500 from "pay day loans" , five yrs later he finds out he owes $3790 of the $4500. He pays $200 a month , $156 of which goes to interest on the loan. New gov't rules cap predatory interest at 35%, but older loans are not retroactivly adjusted and many are out there at almost 45% .
A. How stupid (desperate?) would you have to be
B, How terrible is this guy at running a small engine shop?
C. Who would sleep at night with a spiral like that

The loan , which was actually written as an unsecured lined of credit was sold to DirectLend who then sold it to AllianceFinance. What an industry .
Click to expand...
Legal payday loan rate just got lowered to $14/100 for two weeks. If you roll a $100 loan through a year, you have paid $365 in fees. That has been lowered by the libs to save us as it used to be 15/100 for 390% APR. It's all talking points and very little actual consumer protection.
 
It's just legalized extortion. Just taking advantage of the most vulnerable.
It's just unfortunate that low income people can't get a loan or line of credit through more reasonable sources.
 
250R-ICE said:
It's just legalized extortion. Just taking advantage of the most vulnerable.
It's just unfortunate that low income people can't get a loan or line of credit through more reasonable sources.
Click to expand...
On the flip side, the failure to pay rate is astronomical. While >350% is too high imo, with >10% delinquency, realistically, the 35% rate may be reasonable as below that, no business has an incentive to lend.

The big issue is not enough money coming in compared to going out. Most need a financial intervention, not a loan. I think everyone I knew that used payday loans smoked/drank. Cut the vices for a few months and your future financial path is drastically altered. None were willing to do that.
 
Financial literacy is a skill and an aptitude, just like anything else. We all have our individual strengths and weaknesses.

I'd like to think I have a knack for finances.

Engine repair? Zero knacks for that particular skillset.

I probably get taken advantage of at most of the shops I take my car to.

"You need a new flux capacitor and we topped up your blinker fluid"
"Oh. Ok. Thanks!"

🤷‍♂️
 
Lightcycle said:
Financial literacy is a skill and an aptitude, just like anything else. We all have our individual strengths and weaknesses.

I'd like to think I have a knack for finances.

Engine repair? Zero knacks for that particular skillset.

I probably get taken advantage of at most of the shops I take my car to.

"You need a new flux capacitor and we topped up your blinker fluid"
"Oh. Ok. Thanks!"

🤷‍♂️
Click to expand...
As the original story supports, mechanical aptitude without financial aptitude hurts. Financial aptitude without mechanical aptitude works.
 
GreyGhost said:
As the original story supports, mechanical aptitude without financial aptitude hurts. Financial aptitude without mechanical aptitude works.
Click to expand...

Good point.

Most problems can be solved by throwing money at it.

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