4 things about payday loans
- Payday loans arent intended to be long term, so the APRs opponents spout out is on an unfounded assumption that the loan is going to take a year to pay back when it will (is supposed to) take 2 weeks to a month.
- Many people who use payday loans do so in order to not bounce checks. Bounced check fees can be multiple times worse in terms of (misapplied) APR rates. Imagine a $35 charge (interest rate) for a $5 over draft?
- The majority of those who oppose them never have or will use them. The people who do use them overwhelmingly oppose a ban on the loans.
- If payday loans go away, where will the people who need them turn for short term loans? Loan sharks? Criminal behavior? I think it’s safe to say that people who find themselves in the regular predicament of “needing” a payday loan aren’t the most fiscally or socially responsible (make poor life decisions) people to begin with, removing the one safe safety net they have would really make their lives that much worse.
My family and I recently traveled cross country and I looked for inexpensive hotels for our overnights. I discovered that the average price for a decent hotel was about $70.00 a night. So let me see. $70.00 a night equates to about $2100.00 a month for rent. Wow, what a rip off for a one-room kitchenless, unit in a so-so neighborhood next to a freeway.
So there I was, getting sleepy, in dire need of a place to lay my head, and waiting for me were these greedy hotels wanting to gouge me just because they could. Man! Greed is so ugly.
So, what I propose is a law that makes it illegal for these shady types to charge so much to people who have no other place to stay. Let’s see, the going rent payment for a family of 4 is, say, $1000.00 a month. This equates to about $32.00…
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