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Why payday loans work

Date: Sun, 11/26/2006 - 20:37

Submitted by anonymous
on Sun, 11/26/2006 - 20:37

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Total Replies: 48


So I would like to know what everyone's thoughts are on why people actually take out payday loans? can you not get a credit card, borrow money from a bank or borrow money from friends or relatives? for those of you that have more than 4 pdl's, why is it you can't use any of the above alternatives?

LET 'ER RIP!


People might not have the required credit to borrow money from a bank or apply for a credit card. And the payday loan companies represent payday loans as easy cash. Perhaps that is the reason people go for them. Why are you asking this question? Are you looking for payday loan?


lrhall41

Submitted by on Sun, 11/26/2006 - 21:29

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I guess it depends how bad the debt is. Check your budget - are you living beyond your means? Do you need to scale back your life and make cuts to survive on your current income?

If it is short term, maybe you need to bite the bullet and ask for help from family. But the key it to make it a very short loan and a one time thing. Readjust your life so you don't have to make loans a regular part of life.


lrhall41

Submitted by jedijeff13 on Mon, 11/27/2006 - 05:47

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My suggestion would be to get on the telephone and find a ride to work, or take the bus/cab if you don't want to borrow money from friends/family. Your payday will come soon enough and you can take care of your car then, without a huge interest rate.

I think you're trying to get me to say a PDL is a good idea, and I will NEVER say that. I was in my own personal Hell due to PDL's. Yes, I got myself into the mess, and I got myself out of it. But if I had just swallowed my pride and let the people around me help me instead of thinking, "Watch me take care of this all by myself without them helping me. They'll be proud of me." and then the next minute my checking account is going hundreds of dollars in the negative each payday, resulting in me having to take another PDL to get back in the positive. No thanks. Never again. And you know I tell EVERYONE I know to NEVER take a PDL.


lrhall41

Submitted by Jessi on Mon, 11/27/2006 - 08:22

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I would agree with them both. I was lucky - I never got a PDL, so I never got into the trap others here have. But PDLs, from a financial standpoint, are a bad idea. Forget all the other reasons. The interest rate is enormous. Far beyond what a friend might charge you, if you have friends like that. There are so many more options out there.

You asked about ride. There HAS to be someone in your area that wouldn't have an issue giving you a ride to and from work. So you have a broken car - big deal. You aren't the first and you won't be the last. People understand that you don't have the time or money to fix your car and are very willing to help. If they don't, move by me - I'll drive ya.

For other issues, there are other options. Personally, I went thru a hard job loss. Dang near had my home foreclosed. I spoke with my church pastor who put me in contact with someone in my church that helps in such a situation. People helped me out with cash to make up for missing money and get me back on my feet. There is a great option for help.

Basically, when you are down, you really can't get much lower. Humble yourself and ask for assistance - there is nothing wrong in asking for help. By nature, humans WANT to help. We just never know when we can have the chance.


lrhall41

Submitted by jedijeff13 on Mon, 11/27/2006 - 08:53

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Here I am in one of the deepest holes ever and I really see no way out! I have pay day loans to cover payday loans and I can't do this any longer! I was just contacted by the credit counseling company that you suggested earlier today, but I have to get all of the loan companies together. I am so ashamed and embarassed.


lrhall41

Submitted by Colleen H Carrocia on Mon, 11/27/2006 - 09:26

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Hi Irish. Many of us have been in your shoes, so we understand what you're going through. I will tell you this, though - there is an end in sight. You've taken the first step. There's no need to be ashamed or embarrassed. Everyone makes mistakes. The important thing is for us to learn from our mistakes. Do as the credit counseling company suggests and get all the loans together so they can work with you on resolving your debt. The best of luck to you. Let us know how you're doing.


lrhall41

Submitted by dbaker6 on Mon, 11/27/2006 - 09:49

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Welcome Irish, We have all been there. You have nothing to be ashamed or embarassed about. Keep us posted on your progress and if you have any questions just ask. Best Wishes KYSIDE38


lrhall41

Submitted by KYSIDE38 on Mon, 11/27/2006 - 19:36

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actually i would say that they are certainly not an answer for solid financial management, that is for sure. however, if you look at history, this type of lending has been around for centuries. there has always been a segment of the population that does not have access to unsecured capital. not saying that it is good but it is a fact.


lrhall41

Submitted by on Mon, 11/27/2006 - 19:43

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That is a crock, no offense.

There once was a day when credit bureau's did not exist. My grandpa will tell you in a minute that times were easier once upon a time. He had a mortgage on his farm, and he made payments twice a year. If he didn't have the money, he sold something. Up until 30 years ago a person could walk into their bank and borrow $1,000.00 at 1% interest with no credit check and you had 6 months to pay it back.


lrhall41

Submitted by polly on Mon, 11/27/2006 - 19:47

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Quote:

if you look at history, this type of lending has been around for centuries. there has always been a segment of the population that does not have access to unsecured capital. not saying that it is good but it is a fact.

Yes, there was a time when capitalists used to lend money to poor villagers and farmers knowing the fact that the borrowers can never pay it back. The sole intention of this type of loans was to grab the slightest amount of property those poor villagers had.

This was the scenario in the Third World Countries when Feudalism was in power and such crooked system existed in some corners even 50 years ago. Hope the Guest is not intended to call those days back here.


lrhall41

Submitted by stanley on Mon, 11/27/2006 - 21:21

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The trouble with PDL's is that they are good in theory, BUT. Unfortunately when you get to the point that you are forced to use desperate measures (like PDL's)a person is usually in pretty dire straits financially.

Despite good intentions to do it just this once, it most likely continues on. While it seems like an easy answer it just exacerbates the problem (by starting the cycle we all know of getting one to pay the other). I don't think anyone liked or likes to be in this horrible cycle.


lrhall41

Submitted by Lorri on Mon, 11/27/2006 - 21:38

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Exactly!! PDL industry failed to deliver the purpose of the loan and people got a wrong interpretation of the whole process. That is the problem with PDL.

Lorri, have you read noticed this thread? AG????????s Office, WV is about to take steps against PDL.

http://www.debtconsolidationcare.com/westvirginia/pdl-restrictions.html


lrhall41

Submitted by stanley on Mon, 11/27/2006 - 22:14

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Lorri, I must say read the thread. I am proud of the action my state has taken. The AG office has worked many hours getting this done and its was not election year for them. Hopefully all states will someday do away with this practice of predatory lending. KYSIDE38


lrhall41

Submitted by KYSIDE38 on Tue, 11/28/2006 - 05:38

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oh polly, polly, polly. you my friend are exactly correct. you USED to be able to go and get a signature loan for $5000---back in the good old days. why can you not do that today, you ask? Well let me tell you. There is a thing called personal responsibility and just the exact same way that your car insurance works (the accident free drivers pay the way for the under/non insured by way of higher premiums) the banks and lenders work today. There is a much higher incidence of people taking out loans (all kinds mind you) and feeling like they don't have to pay them back. Does that sound familiar? In any case it doesn't take much to see why that is. As for the credit bureaus, emerging countries, not unlike the US about 80 years ago, are forming non-traditional credit bureaus via the form of cell phone bills. That's right, could you imagine what the credit world would look like in the US if we based credit off of that? I guess then the cell phone companies would be ripping everyone off.

whew...that was a really long winded post of opinion. enjoy!


lrhall41

Submitted by on Tue, 11/28/2006 - 20:30

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the reason why payday loans work is because as for me i have no family member to borrow from because its only a few that are still living, i just recently went to work andthere was no job to have my bills were not gonna wait for me to find a job my credit is not good enough for a credit card and the couple of credit cards i just received for a line of 300 dollars hell they took out more than 200 for no good credit fees that i was only left with 50 dollars to spend now aint that some shit although they charge an arm and leg to get it the next day you need it and thats all you see


lrhall41

Submitted by on Fri, 12/01/2006 - 22:56

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