Q&A: Pay Day cash advances establishments are known to be corrupt, can I have examples?
Question by Beep B: Pay Day cash advances establishments are known to be corrupt, can I have examples?
My friend is using those places to get those 2 week loans,I keep telling her not to but she says she has no other options. I would like to explain to her the facts behind these bad businesses can you give me some facts to dissuade her??
Best answer:
Answer by v b
I wouldn’t say they were corrupt, rather that they legally rip her off.
1. Even if she pays the loans back, she is paying a ridiculously amount of money in the process. For example, she borrows $ 100, but pays back, what, $ 122? For 2 weeks that’s the equivalent of 600% interest. My checking account is paying .1%.
2. One of these days, she will trip up and NOT be able to pay them back. So she’ll renew the loan and renew the loan and renew the loan. The fees will eat her alive.
Know better? Leave your own answer in the comments!
The first person is right, if you get caught up in that rat trap it’s terrible. I mean it’s helpful but it hard to get out if you don’t get out right away. I’m being sued by one because I’m 1 1/2 month behind. Good luck I hope she can get out and soon!!
For the most part they are not corrupt. They are playing by the rules and laws of the area they are in or they would be closed down.
However they do charge high rates of interest and high fees, but that is with in the law.
It would be better to sit you sister down and try to teach her money management and how to budget her money. Review what she spends her money on and try to cut out wasteful spending.
Stop the fast food and dinning out, cook at home.
Cook her meals, do buy the ready to eat meals at the store.
Cut out junk food like chips, soda, and candy.
Cut down on beer and cig’s.