Pay Day Loans

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When we first married we bought some furniture from the Brick , no pay for one year . When the loan came due we found out the loan had been sold to Household Finance and you had to pay the loan at a branch office of Household finance. Try and find that pre internet living in the sticks . We cleared the loan with zero interest but if we had not our two Gs worth of furniture was twenty one percent back to tbe day we purchased. Lesson learned .


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Lightcycle said:
So many variables as to why people get themselves into dire straits, financially.

- financial literacy: an inability or lack of training to understand math, interest rates and options available to them

- impulse control: inability to make a distinction between necessities and luxuries, inability to delay gratification, tendency towards financing depreciating assets.

- You can also make a case about the globalization of social media and influencers to generate demand for unhealthy spending habits. 30 years ago, you only had to keep up with the Joneses across the street in your little neighbourhood in Newmarket. Now you gotta keep up with the rich housewives of Manhattan and their cottages in the Hamptons.

- ever rising cost of living and stagnant wages. This one I don't buy into too much. There's an oft quoted stat that right now, the majority of Canadians are only $200 away from insolvency. However, if you dig a bit deeper, that stat has been quoted every single year for the last... well, forever. It doesn't matter how the economy is doing, a lot of people will always spend right up to their limit of their finances, rich or poor.

- But I think the most insidious factor is the sheer weight of the financial industry's efforts to prey upon the aforementioned using a wide variety of debt traps like Payday loans and Rent-To-Own schemes with large markups. Right now, the big one is Buy-Now-Pay-Later, like Klarna, Sezzle, etc. The industry is moving so fast that regulators can't keep up with all the new offerings and the different ways lending companies are finding to get around the rules.
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I agree 100%. I also believe everyone of those could be avoided or greatly reduced with simple common sense.
 
Lightcycle said:
Good point.

Most problems can be solved by throwing money at it.

giphy.webp
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Agreed. If you have a problem that money can solve you don't have a problem.
 
A lot of my friends are not good with money. They will be the first to admit it.

It's okay with me. I'm not good at other things that they excel at. We've all got our strengths and weaknesses.

What *is* a red flag is when someone is bad with money - poor impulse control, trying to project an image, etc. - but then blame somebody or something else for their own predicament.

That is a moral failure and a huge character flaw in my eyes.

So you finance all your non-necessities on a whim and then turn around and blame Boomers or immigrants or politicians because you don't have any money at the end of the day? Nope. Take ownership and responsibility for your own actions.

Personal finance is a lot like personal fitness.

I'm terribly out of shape. I eat like crap and don't exercise. You don't see me blaming Ronald McDonald for it.
 
Lightcycle said:
What *is* a red flag is when someone is bad with money - poor impulse control, trying to project an image, etc. - but then blame somebody or something else for their own predicament.

That is a moral failure and a character flaw in my eyes.

So you finance all your non-necessities on a whim and then turn around and blame Boomers or immigrants or politicians because you don't have any money at the end of the day? Nope. Take ownership and responsibility for your own actions.
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Sounds like politicians.
 
JC99 said:
I forgot to add one other thing. When you’re searching for credit relief issues and things like that it’s also not that uncommon to find other predatory companies that will encourage you to consolidate your multiple debts under their umbrella so that they now have access to the interest you were paying company A.
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They buy the long overdue debts at as little as 5%. Then they play the games.

I knew a guy that got way behind but wanted to clear the debt. In a telephone conversation the collector offered to settle for 50% to clear things. He scraped together the 50% and once the cheque cleared the collector denied any 50% offer was even discussed.
 
crankcall said:
When we first married we bought some furniture from the Brick , no pay for one year . When the loan came due we found out the loan had been sold to Household Finance and you had to pay the loan at a branch office of Household finance. Try and find that pre internet living in the sticks . We cleared the loan with zero interest but if we had not our two Gs worth of furniture was twenty one percent back to tbe day we purchased. Lesson learned .


Sent from my iPhone using GTAMotorcycle.com
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Yup. The day you signed the papers in the showroom. Not as some people assume, the day of delivery. One minute late and they drop the hammer.
 
GreyGhost said:
Common sense isn't so common anymore. Yolo and the budget will balance itself seems more popular. Or if you want to be cynical, many people don't plan for tomorrow as they hope an inheritance will solve their future issues.
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You forgot Lotteries.

Growing up when the Irish Sweepstakes was the only game in town and illegal at that, it was different. If I saw something nice, a car or house, I would be told that to get it I had to work hard and save my money. Now it's "Win the lottery" "Work ethic be damned."
 
Dirty Frank said:
You would not believe the percentage of buyers that assume that the interest clock STARTS at the one year mark.
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Even OSAP plays that game. Tell students that payments don't need to start for six months after graduating but neglect to mention that interest starts the day you graduate. When the igovernment nstitution providing most people their first loan is opaque and tries to screw you, it's hard to criticize predatory lenders.
 
I always paid off the Leons & Future Shop cards a couple of months before the year was up, thankfully my parents taught me to pay attention to the fine print somewhat, the cost of borrowing gets missed by many and I wouldn't call myself fully financially literate either. The biggest shocker I ever saw was at a funeral home, I read the fine print and was shocked to see 24% as the financing rate if not paid up front.
 
If you follow the trail long enough you will find that most if not all of the predatory loan businesses are owned by or affiliates of our mainstream big banks.
The same banks that by refusing to service that segment of the business force the desperate or ignorant into that trap.
Capitalism at its finest.
 
crankcall said:
When we first married we bought some furniture from the Brick , no pay for one year . When the loan came due we found out the loan had been sold to Household Finance and you had to pay the loan at a branch office of Household finance. Try and find that pre internet living in the sticks . We cleared the loan with zero interest but if we had not our two Gs worth of furniture was twenty one percent back to tbe day we purchased. Lesson learned .


Sent from my iPhone using GTAMotorcycle.com
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Been in the same situation, luckily with the same outcome.
 
tat2 said:
I always paid off the Leons & Future Shop cards a couple of months before the year was up, thankfully my parents taught me to pay attention to the fine print somewhat, the cost of borrowing gets missed by many and I wouldn't call myself fully financially literate either. The biggest shocker I ever saw was at a funeral home, I read the fine print and was shocked to see 24% as the financing rate if not paid up front.
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Old joke

The difference between a hooker and a banker is that the hooker stops screwing you when you die.
 
Friend is a mortgage broker , you go see her when the traditional bank isn’t working for you . She’s not a shark and her rates are often better than the bank , but the number of people that show up with an employment letter that states they earn over two hundred Gs a year working for the family business , which is a convenience store . Yeah ok .


Sent from my iPhone using GTAMotorcycle.com
 
Lightcycle said:
So many variables as to why people get themselves into dire straits, financially.

- financial literacy: an inability or lack of training to understand math, interest rates and options available to them

- impulse control: inability to make a distinction between necessities and luxuries, inability to delay gratification, tendency towards financing depreciating assets.

- You can also make a case about the globalization of social media and influencers to generate demand for unhealthy spending habits. 30 years ago, you only had to keep up with the Joneses across the street in your little neighbourhood in Newmarket. Now you gotta keep up with the rich housewives of Manhattan and their cottages in the Hamptons.

- ever rising cost of living and stagnant wages. This one I don't buy into too much. There's an oft quoted stat that right now, the majority of Canadians are only $200 away from insolvency. However, if you dig a bit deeper, that stat has been quoted every single year for the last... well, forever. It doesn't matter how the economy is doing, a lot of people will always spend right up to their limit of their finances, rich or poor.

- But I think the most insidious factor is the sheer weight of the financial industry's efforts to prey upon the aforementioned using a wide variety of debt traps like Payday loans and Rent-To-Own schemes with large markups. Right now, the big one is Buy-Now-Pay-Later, like Klarna, Sezzle, etc. The industry is moving so fast that regulators can't keep up with all the new offerings and the different ways lending companies are finding to get around the rules.
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Speaking of impulse control, here I am trying to be financially smart by using 8yr old phones and not buying meals out but I come on here and y'all are like:
D

Post in thread 'Luxury tool deal? Milwaukee 12v power ratchet'

Don't you still need to break the bolt loose with a manual ratchet, then switch to this? It would probably be easier to just stay with the ratchet.
 
Hardwrkr13 said:
Speaking of impulse control, here I am trying to be financially smart by using 8yr old phones and not buying meals out but I come on here and y'all are like:
D

Post in thread 'Luxury tool deal? Milwaukee 12v power ratchet'

Don't you still need to break the bolt loose with a manual ratchet, then switch to this? It would probably be easier to just stay with the ratchet.
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Fark, I was just about to pull the trigger on that too!

To be fair, I never said I was immune to poor impulse control... :cry:
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