Do you have adblock enabled?
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(The New York Times)   Problem: those pesky "consumer protection laws" limit the interest rates that banks can charge. Solution: work behind the scenes with payday loan companies, for a hefty cut of the 500% interest that they can charge   (nytimes.com ) divider line 63
    More: Asinine, payday loans, interest rates, consumer protections, Pew Charitable Trusts, insufficient funds, credit check, West Indies, Consumer Financial Protection Bureau  
•       •       •

2619 clicks; posted to Business » on 24 Feb 2013 at 6:23 PM (2 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



63 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest

Archived thread

First | « | 1 | 2 | » | Last | Show all
 
2013-02-24 01:21:42 PM  
In the 90's and mid 00's, it was $30 overdraft fees and a shell game with card charges. Now, it's this. God knows what tactic they'll come up with next in the eternal shell game of "fark the little guy"
 
2013-02-24 03:42:23 PM  
"Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn't operate," said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.

The ability of a business to automatically withdraw funds from your account isn't the problem. Lots of legitimate businesses do this. The problem is allowing sleazebags like payday loan "businesses" to any kind of automatic access to your checking account in the first place.
 
2013-02-24 04:23:46 PM  
The Mob wishes they had it as good as payday loan companies
 
2013-02-24 04:38:25 PM  
...and this is why I don't spend money I don't have.
 
2013-02-24 05:31:10 PM  
The irony is that the payday loan operator isn't really making more than 20-30% after you deduct rent, labor, insurance, and bad loans. They're small loans, and small profits attached to large fixed costs.

Ironically, if you walked into your bank and asked if they'd loan you $500 at 30%APR till payday they'd laugh you out the door because it wouldn't be worth their time.

Ideally we'd do away with usurious interest rates from the top, but they're too busy making things so the bottom needs that 500% loan so they can make rent and pay for gas to get them that that job that doesn't pay well enough that they don't need 500% interest rate loans. I'm a strict atheist but I'd reach out to help preachers teach their parishioners the "evils" of letting yourself into usury.  And if we could get the people at the bottom to stop feeding the problem maybe things will work out.
 
2013-02-24 06:28:33 PM  

SilentStrider: The Mob wishes they had it as good as payday loan companies


Feel free to start a low-interest loan company catering to those with bad credit.

/good luck, we're all counting on you.
 
2013-02-24 07:08:48 PM  

DrPainMD: SilentStrider: The Mob wishes they had it as good as payday loan companies

Feel free to start a low-interest loan company catering to those with bad credit.

/good luck, we're all counting on you.


yeah, because getting judgements for loan debt and taking property, tax returns, and even pay directly from a paycheck is just so hard for these people to get.

There is a reason these companies actually rake in huge profits, and why some states are now emulating their collection processes
 
2013-02-24 07:08:58 PM  

hubiestubert: ...and this is why I don't spend money I don't have.


You sound smart.
 
2013-02-24 07:11:56 PM  

SilentStrider: The Mob wishes they had it as good as payday loan companies


I think I'd rather borrow from a shark than go to one of those ripoff "payday advance" places.

I mean, my leg will heal in a couple of months.  Those payday loan ripoff artists can fark your finances up for years.
 
2013-02-24 07:16:06 PM  

wildcardjack: The irony is that the payday loan operator isn't really making more than 20-30% after you deduct rent, labor, insurance, and bad loans. They're small loans, and small profits attached to large fixed costs.


Yeah, keep believing that.

Ironically, if you walked into your bank and asked if they'd loan you $500 at 30%APR  459%APR  till payday they'd laugh you out the door because it wouldn't be worth their time  have dollar signs in their eyes like a Warner Bros cartoon.

/FTFY
 
2013-02-24 07:32:39 PM  
Bring back the usury laws and be willing to deal with the foreign entities as if jurisidiction didn't matter.
 
2013-02-24 07:49:00 PM  
I think it's funny how the bible explicitly forbids usury in multiple places, but I've never once heard a holy roller rail against it.

But one vague sentence about teh ghey and *WHARRRRRRGARBLE* until the end of time.
 
2013-02-24 07:53:12 PM  
The payday loan people make pawn shop rates look good.
 
2013-02-24 08:02:18 PM  

wildcardjack: The irony is that the payday loan operator isn't really making more than 20-30% after you deduct rent, labor, insurance, and bad loans. They're small loans, and small profits attached to large fixed costs.


Yep, I did computer work for someone that had 10 or so of these places. Here's how it works:

Need $500 now? They'll lend it to you, but it'll cost you $30 or so for every 2 weeks you don't pay them. Basically, they want you to come in and pay them $30 every 2 weeks to keep it afloat. It's called a "payday" loan for a reason. By law, they have to be upfront about this, to the point of posting a sign taller than you in big capital letters spelling out what the deal is. Plus, they sign a paper that has the pertinent points in big capital letters.

Fark it, at least they're upfront about it. For people to compare these to conventional loans (OH NOES! LOOK AT THAT APR!) is disingenuous, because these are loans that no bank would touch.
 
2013-02-24 08:10:11 PM  

NutWrench: "Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn't operate," said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.

The ability of a business to automatically withdraw funds from your account isn't the problem. Lots of legitimate businesses do this. The problem is allowing sleazebags like payday loan "businesses" to any kind of automatic access to your checking account in the first place.


No, the problem is people buying shiat they can't afford.
 
2013-02-24 08:26:40 PM  

whistleridge: In the 90's and mid 00's, it was $30 overdraft fees and a shell game with card charges. Now, it's this. God knows what tactic they'll come up with next in the eternal shell game of "fark the little guy"


Or... You could not take out loads and make sure you have enough money in your account when you write checks.

Crazy talk, I know....
 
2013-02-24 08:52:52 PM  

Propain_az: NutWrench: "Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn't operate," said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.

The ability of a business to automatically withdraw funds from your account isn't the problem. Lots of legitimate businesses do this. The problem is allowing sleazebags like payday loan "businesses" to any kind of automatic access to your checking account in the first place.

No, the problem is people buying shiat they can't afford.


I hear some of them even have refrigerators.
 
2013-02-24 08:54:52 PM  
rather than reigning in payday loan places the State of Washington now allows local banks and credit unions to make the same loans at 87% interest.

I had a loan officer offer to make me one and could not get beyond the X dollars per hundred per week.   I could work it out in my head it was so straight forward, when I said, "that's over 80 percent intrest!"  she looked at me and said, "no it's $X per week"  sigh.
 
2013-02-24 09:18:17 PM  

Propain_az: NutWrench: "Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn't operate," said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.

The ability of a business to automatically withdraw funds from your account isn't the problem. Lots of legitimate businesses do this. The problem is allowing sleazebags like payday loan "businesses" to any kind of automatic access to your checking account in the first place.

No, the problem is people buying shiat they can't afford.


Like rent?
 
2013-02-24 09:35:34 PM  

Monkeyfark Ridiculous: Propain_az: NutWrench: "Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn't operate," said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.

The ability of a business to automatically withdraw funds from your account isn't the problem. Lots of legitimate businesses do this. The problem is allowing sleazebags like payday loan "businesses" to any kind of automatic access to your checking account in the first place.

No, the problem is people buying shiat they can't afford.

I hear some of them even have refrigerators.


Do they really OWN those refrigerators?  I bet they got them on credit.   Or they came with their rented apartment.

Stupid poors, living beyond their means.
 
2013-02-24 09:36:37 PM  

hubiestubert: ...and this is why I don't spend money I don't have.


No mortgage, no car loan, no credit cards?

Cheers on being independently wealthy.
 
2013-02-24 10:45:31 PM  

sendtodave: Do they really OWN those refrigerators?  I bet they got them on credit.   Or they came with their rented apartment.

Stupid poors, living beyond their means.


I hate to say this but personal responsibility and irresponsible spending, especially among people just starting out in life, has a lot to do with people who seek out payday loans.

Even if I needed an emergency influx of funds, it'd be far cheaper to use my credit card and miss a payment, than it would be to take out a single payday loan.

Yeah, they're predatory lenders, but until the laws change to catch up with their practices, it's buyer beware.
 
2013-02-24 10:58:53 PM  

BronyMedic: Even if I needed an emergency influx of funds, it'd be far cheaper to use my credit card and miss a payment, than it would be to take out a single payday loan.


You think these guys qualify for credit cards?   I couldn't before I got an office job.

Make seven bucks an hour, full time, living paycheck to paycheck?  No credit for you.

Oh, your POS 12 year old car died?  Looks like you won't make it to your next paycheck, buddy!

The obviious solution is for everyone to get office jobs and become middle class.  It was so easy to do!
 
2013-02-24 11:11:28 PM  

sendtodave: You think these guys qualify for credit cards?   I couldn't before I got an office job.


Bullshiat. It's not hard to get a secured credit card. That's how I built my credit from having none at 18.

sendtodave: Make seven bucks an hour, full time, living paycheck to paycheck?  No credit for you.


I was making minimum wage at the time, 5.45 an hour, working 96 hours a week.

sendtodave: Oh, your POS 12 year old car died?  Looks like you won't make it to your next paycheck, buddy!

Oh, bullshiat. There are garages and dealerships out there that will work with a payment plan for people who can't pay up front. Especially in rural areas.

sendtodave: The obviious solution is for everyone to get office jobs and become middle class.  It was so easy to do!


That's powerful derp there. I think you underestimate the amount of money a blue collar worker can make, especially in skilled labor fields.

No, the obvious solution is to NOT rely on predatory lenders who skirt the law to defraud their customers out of massive amounts of money, ruin any kind of credit they have, and charge anywhere from 400 to 1000% interest on the loan depending on which state or city you're in.

The other obvious solution is to start teaching people early good financial practices. Like, you know, budgeting and living within your means, even if you have to use credit to purchase something.

If I make 2000 take home a month, and I know that 1500 dollars of that is going to be spent on cost of living and essentials, it doesn't make sense for me to go out and buy something that's going to add 200 dollars on to that number that I don't need, does it?
 
2013-02-24 11:36:03 PM  
Have to love inflation...I know the Krugmans think it's fiction. BS.
 
2013-02-24 11:40:40 PM  

msupf: DrPainMD: SilentStrider: The Mob wishes they had it as good as payday loan companies

Feel free to start a low-interest loan company catering to those with bad credit.

/good luck, we're all counting on you.

yeah, because getting judgements for loan debt and taking property, tax returns, and even pay directly from a paycheck is just so hard for these people to get.

There is a reason these companies actually rake in huge profits, and why some states are now emulating their collection processes


If it's such a low risk business, then do it.
 
2013-02-24 11:48:10 PM  

BronyMedic: sendtodave: You think these guys qualify for credit cards?   I couldn't before I got an office job.

Bullshiat. It's not hard to get a secured credit card. That's how I built my credit from having none at 18.

sendtodave: Make seven bucks an hour, full time, living paycheck to paycheck?  No credit for you.

I was making minimum wage at the time, 5.45 an hour, working 96 hours a week.

sendtodave: Oh, your POS 12 year old car died?  Looks like you won't make it to your next paycheck, buddy!

Oh, bullshiat. There are garages and dealerships out there that will work with a payment plan for people who can't pay up front. Especially in rural areas.

sendtodave: The obviious solution is for everyone to get office jobs and become middle class.  It was so easy to do!

That's powerful derp there. I think you underestimate the amount of money a blue collar worker can make, especially in skilled labor fields.

No, the obvious solution is to NOT rely on predatory lenders who skirt the law to defraud their customers out of massive amounts of money, ruin any kind of credit they have, and charge anywhere from 400 to 1000% interest on the loan depending on which state or city you're in.

The other obvious solution is to start teaching people early good financial practices. Like, you know, budgeting and living within your means, even if you have to use credit to purchase something.

If I make 2000 take home a month, and I know that 1500 dollars of that is going to be spent on cost of living and essentials, it doesn't make sense for me to go out and buy something that's going to add 200 dollars on to that number that I don't need, does it?


As far as getting credit, just telling you how it went for me.  Perhaps it's because my parents never had credit, and I was living in another state at the time, I dunno.  I was in my mid 20s, working an office job, before even Crapital One would look at me.  Of course, by then, I didn't need them.

And I was just using "office" to mean a skilled job.  One that doesn't pay less than ten bucks an hour.

And I've never met someone that'd fix my car for free without credit.  Certainly not the places I tried.
 
2013-02-25 12:13:59 AM  
BronyMedic:If I make 2000 take home a month, and I know that 1500 dollars of that is going to be spent on cost of living and essentials, it doesn't make sense for me to go out and buy something that's going to add 200 dollars on to that number that I don't need, does it?

If you look at why people get themselves into unsustainable debt it's very rare that they just can't control their spending. The far more common scenario is that someone is living paycheck-to-paycheck, they have an unexpected cost, they need to get a little credit to make ends meet, something else goes wrong, they need a little more credit, etc. Even people with a small to moderate amount of savings can be completely wiped out by an unexpected expenses.

As you say, the key here is teaching people how to be financially secure, but what that really means is savings. Everyone should at least have 9-12 months of emergency funds, and once you have that you should be saving something every month. Even if you can only save $50 or $100 per paycheck, you need to start putting something away and then never touch it outside of an honest-to-God emergency. Once you have that emergency fund you pay down all your debt, and once you have no debt you keep saving.

This has been made a lot worse recently by the recession, but one in five households has negative net worth. We have 43% of households that have no savings, and 27% are asset poor, which means they have no savings and no substantial assets they could use to defray an unexpected cost. This means that something like 40% of American households need some form of credit to survive even small unexpected expenses, and the number of households that could survive something serious, like unexpected medical bills or having to replace a vehicle ahead of schedule is going to be much, much larger.
 
2013-02-25 12:51:59 AM  

wildcardjack: Ironically, if you walked into your bank and asked if they'd loan you $500 at 30%APR till payday they'd laugh you out the door because it wouldn't be worth their time.


Ahem!  Wells Fargo, Fifth Third, and U. S. Bancorp were doing it in 2010.  They just called it a "checking advance product."  $100 to $500, 30 days, 120% APR.
 
2013-02-25 12:52:26 AM  
Raising the minimum wage to keep up with inflation would help stop a good chunk of the payday loan places. Most of the time, needing money is not a matter of spending too much, it's making too little.
 
2013-02-25 12:59:43 AM  
The definition of scum.
 
2013-02-25 01:38:58 AM  

hubiestubert: ...and this is why I don't spend money I don't have.


Wow. Deep in the dark of night, there stands a small glimmering candlelight, a beautiful brilliance which stands to give spark to a flame of the all too rarely seen animal that was once known as good common sense. I bow deeply to you my friend, and your most excellent post is why you're my Farker of the Day.

--- I wish grandparents (or great grandparents) across the nation would explain to their grandchildren/great grandchildren how back in the day the closest they came to the dangers of credit cards was to buy on the installment plan. That, and the great difference between having what you need, what you truly need, and what you merely want.

Bless your heart hubiestubert.
 
2013-02-25 01:40:17 AM  

Fubini: one in five households has negative net worth


You also need to define "household."  Pretty much every college student or recent college grad has negative net worth (ding.  Paying $28K/year towards $40K of debt on $48K of after-tax income).
 
2013-02-25 01:42:20 AM  

machodonkeywrestler: Propain_az: NutWrench: "Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn't operate," said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.

The ability of a business to automatically withdraw funds from your account isn't the problem. Lots of legitimate businesses do this. The problem is allowing sleazebags like payday loan "businesses" to any kind of automatic access to your checking account in the first place.

No, the problem is people buying shiat they can't afford.

Like rent?

If you have to take out a payday loan for rent, you might need a cheaper place to live

/not to say you can find it
 
2013-02-25 01:52:32 AM  
there is an easy solution to the pay day loan mess : a ban them on the federal level including making it a crime for pay day lenders in other nations to offer them to US citizens.

never get the house though.
 
2013-02-25 05:25:25 AM  

Fubini: and the number of households that could survive something serious, like unexpected medical bill


Of course this is one that shouldn't exist as a problem in the first place in any developed nation.
 
2013-02-25 07:40:23 AM  

MithrandirBooga: I think it's funny how the bible explicitly forbids usury in multiple places, but I've never once heard a holy roller rail against it.

But one vague sentence about teh ghey and *WHARRRRRRGARBLE* until the end of time.


I've never met one that wouldn't take paper money, either. Or one that preached against interracial marriage, or advocated for bond servitude, either. Apparently they've come up with some excuse for only following the parts they want to and pretending the inconvenient parts don't exist.
 
2013-02-25 07:41:53 AM  

sendtodave: hubiestubert: ...and this is why I don't spend money I don't have.

No mortgage, no car loan, no credit cards?

Cheers on being independently wealthy.


I have none of the above and I'm not super wealthy. You can be middle-class and debt-free if you put your mind to it. You have to make sacrifices, though, so most people don't want to do it.
 
2013-02-25 07:57:28 AM  
Propain_az:

No, the problem is people buying shiat they can't afford.

Obama giving away free cell phones just empowered them further!
 
2013-02-25 08:03:37 AM  

Fubini: The far more common scenario is that someone is living paycheck-to-paycheck, they have an unexpected cost, they need to get a little credit to make ends meet, something else goes wrong, they need a little more credit, etc. Even people with a small to moderate amount of savings can be completely wiped out by an unexpected expenses.


What kills them is that they don't pull back on expenses until the issue is forced.  Anyone who's lived more than a few years in the real world should know that the "unexpected" is anything but unexpected.  People get sick and cars break down, so not having savings is asking for trouble -- especially if you're poor.  What people really should do is scale back -- WAY back -- in any situation where they're financially vulnerable.  Just making ends meet isn't enough; that's just waiting for that "unexpected" expense to blindside you.  You need to save until you have enough cash to pay for the "unexpected" without borrowing.  This is a skill, and frankly one most people don't have, so the rich have no business judging.  But it is the root of the problem.

Ah, and here's where the bleeding hearts go, "You're just someone who's never been in that situation!  You don't know what it's like to barely scrape by!"  Oh, you mean sleeping in a smelly used car and subsisting on stale donuts?  Been there, done that.  The working poor enjoy a standard of living today that would be the envy of kings before the Industrial Revolution.  Which is fine.  Great, actually -- the crappy thing about kings back then is that they enjoyed their standard of living at the expense of others.  I'm not one who believes the poor should be miserable because they're poor or deserve it somehow.  The issue here isn't where they're at so much as living beyond their means.  "Misery" is a hell of a sliding scale but most people don't realize that, so even the poor have a lot more expenses they can eliminate than bleeding hearts are led to believe.  However -- and here's the rub -- most people would rather borrow money than plan to slide downward.  That $500 payday loan to pay for an "unexpected" car repair is often needed because stuff like smoking, drinking, lottery tickets and cable TV aren't cut until it becomes impossible to pay for them all.  THEN that car repair gets people sobbing, "I don't know how I'll ever pay for this!"  This is what people refer to as "unable to manage their money", but like I said, just blaming them isn't the solution because the rich condemning these people often don't have this skill either.  About all they really do is gut others' budgets and grab the cash to cover their own expenses; a convenient option that isn't there for those on the receiving end of these gut-and-run ops.  Whom are the rich asking the poor to emulate, exactly?  Lehman Brothers?  AIG?  General Motors?  Congress?

The reason why payday loans are unethical has nothing to do with profit margins or APRs.  Free market economics dictate that demand for a product or service will be met with supply, but there are certain demands that should not be satisfied.  Consumer debt is every bit as addictive and destructive as the worst drugs but we ban drugs (resulting in a thoroughly unregulated black market) and pretty much let the payday lenders do whatever.  In both cases it's in society's best interest to ignore the libertarians because just one idiot can ruin an entire family unless dealing with debt junkies is tightly regulated, but the part that gets me is, who should do this job?  Given the glowing examples of altruistic generosity and fiscal prudence above, I don't know who I'd trust in this country to rehabilitate the finances of the working poor.
 
2013-02-25 08:11:52 AM  
I wonder what slavery would be like compared to poverty today if slavery still existed.

Who would have it better?
 
2013-02-25 08:23:18 AM  

MithrandirBooga: I think it's funny how the bible explicitly forbids usury in multiple places, but I've never once heard a holy roller rail against it.

But one vague sentence about teh ghey and *WHARRRRRRGARBLE* until the end of time.


Bonus points for the fact that Jesus himself never spoke out about gays or got angry about them.

Moneylenders?  Uh yeah, the only thing in the whole New Testament that actually pissed off Christ.

Then again, I concluded a long time ago that the vast majority of "Christian" clergy aren't following the teachings of Jesus of Nazareth, they're just enforcing their own social/cultural biases while giving lip service to the dominant religious paradigm of the society they live in
 
2013-02-25 08:36:21 AM  
Oh noes!  People are lending money to others on terms that are clearly spelled out!  Oh the huge manatee!

Silverstaff: Moneylenders?  Uh yeah, the only thing in the whole New Testament that actually pissed off Christ.


He also went ballistic at a fig tree for being out of season.
 
2013-02-25 08:45:17 AM  

wildcardjack: Ironically, if you walked into your bank and asked if they'd loan you $500 at 30%APR till payday they'd laugh you out the door because it wouldn't be worth their time.


However, peer-to-peer lenders would be happy to loan you that amount, probably for much less interest. Screw the banks and the payday loan sharks.
 
2013-02-25 09:04:24 AM  

BMFPitt: Oh noes!  People are lending money to others on terms that are clearly spelled out!  Oh the huge manatee!

Silverstaff: Moneylenders?  Uh yeah, the only thing in the whole New Testament that actually pissed off Christ.

He also went ballistic at a fig tree for being out of season.


Didn't he get mad at some pigs too?
 
2013-02-25 09:08:51 AM  

sendtodave: hubiestubert: ...and this is why I don't spend money I don't have.

No mortgage, no car loan, no credit cards?

Cheers on being independently wealthy.


No mortgage. Used car, and paid for outright. Debit card only. It IS possible to live within your means, but most folks like to push further, and then are surprised when things get hairy at how much more they have to lose. It takes more discipline, but you can live well without spending money you don't have.
 
2013-02-25 09:09:16 AM  
So banks are processing authorized payments and this is wrong? How about Federally requiring banks to A) allow customers to put a block up to prevent overages B) allow customers to block specific entities from withdrawing funds.

Snarcoleptic_Hoosier: Raising the minimum wage to keep up with inflation would help stop a good chunk of the payday loan places. Most of the time, needing money is not a matter of spending too much, it's making too little.


Source?

sendtodave: hubiestubert: ...and this is why I don't spend money I don't have.

No mortgage, no car loan, no credit cards?

Cheers on being independently wealthy.


You can have loans and still have the money. Depending on the interest rates sometimes it's better to have a loan than pay up front. If you are only paying 1.5% on a loan and can make 3% by saving(investing), it's better to save. Since some interest is tax deductible it is even more advantageous.   Also using a credit card but paying it off every month costs the person nothing, it's actually the opposite of payday loan where the bank gives you the money for about a month interest free. So the person's money can earn a bit of interest and get points/rewards based on their spending.
 
2013-02-25 09:24:29 AM  
Propain_az:
No, the problem is people buying shiat they can't afford.

Yeah, how dare people make so little money that they need a 500% APR loan to please God get the landlord off their backs for one more month and maybe get power back on for their kids. I've known many people that have fallen into the payday loan trap (there's one on every corner here in ABQ), and not a single one of them was because they needed money for a big screen TV or that new car they have their eye on.

I'm sorry Arizona, but sometimes good, hard-working people get f'd over. People get desperate, and these companies are there to welcome them to their usurious chest with open arms.
 
2013-02-25 09:49:23 AM  

BronyMedic: Bullshiat. It's not hard to get a secured credit card. That's how I built my credit from having none at 18.


Right, because people that need payday loans have the $500 to put down on a secured credit card.  Wait, maybe that's the solution; they can take a $500 payday loan to secure the deposit for their credit card, which they can then use to repay the payday loan!  Brilliant!

I was making minimum wage at the time, 5.45 an hour, working 96 hours a week.

Sure you were, sure you were.

Oh, bullshiat. There are garages and dealerships out there that will work with a payment plan for people who can't pay up front. Especially in rural areas.

Just because they exist doesn't mean everyone will have access to them.

That's powerful derp there. I think you underestimate the amount of money a blue collar worker can make, especially in skilled labor fields.

A master electrician billing at $40 an hour is not the one taking out a payday loan.  It's the apprentice drywaller making $40 a day.

The other obvious solution is to start teaching people early good financial practices. Like, you know, budgeting and living within your means, even if you have to use credit to purchase something.

If I make 2000 take home a month, and I know that 1500 dollars of that is going to be spent on cost of living and essentials, it doesn't make sense for me to go out and buy something that's going to add 200 dollars on to that number that I don't need, does it?


You're such a smug piece of shiat.  Even a $500 cushion would be a dream for some of these people.  But maybe you're right; they should just stop being so lazy and go out and make more money!
 
2013-02-25 09:51:28 AM  

hubiestubert: No mortgage. Used car, and paid for outright. Debit card only.


Oh look, it's another "Why can't everyone just be rich like me?"  It would be great if the world actually worked like that, wouldn't it?
 
Displayed 50 of 63 comments

First | « | 1 | 2 | » | Last | Show all

View Voting Results: Smartest and Funniest


This thread is archived, and closed to new comments.

Continue Farking
Submit a Link »
Advertisement
On Twitter






In Other Media


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.

Report