Are those Pay Day advance loan places a scam?

Question

I have heard that they charge high interest for small loans.

Answer 1

No, not a scam, but you'll wind up paying an outrageous amount of interest. A few years ago, I wound up in a pinch and borrowed $150, had to pay back $180 two weeks later. Not so bad I guess if it's a one time deal, but that's WAY higher interest than on a 19.8% interest credit card!

Answer 2

While Pay Day loans are not a scam, they are not a very wise investment. They charge an astronomical amount of interest on their loans, averaging out to 365% to 400% per year. It is definitely not wise to get caught up in the scheme.

These places should only be a LAST resort, after you have exhausted every other possible avenue. If you need cash quickly, try selling off something on Ebay, pawning something you no longer need or use, or having a garage/yard sale. All of these are better than Pay Day loans.

If you can avoid this method of borrowing, stay far, far away. It is definitely not a wise decision if it can be avoided.

Answer 3

Yes! ... I regret doing it when I fell behind on the bills and went to Pay Day Advance and I ended up doing 3 of them at the same time (3 different payday advance places) and my hubby did 4 at the same time ...

Eventually we fell too deep and couldn't pay them all off fast enough ... I realized it was NOT worth it at all with the HIGH interest ...

Our friend found out we were doing this and he eventually paid them all off for us and we paid him back with 20 dollars interest a month ... That really helped a lot! ... We paid him off in a year! ... If we were still doing it, eventually we'll still be paying for it!

We have told our family members not to fall into the same problem and to ask for loan through a relative or a friend that can help you out. (Offer 20 dollars interest a month)

2 family members I know are going through the same thing and we felt so bad that we can't help them to get out of it. They have fallen too deep.

Please don't even think about doing this.

Answer 4

pretty much. They charge a lot More for the loan than a bank would. In the long run you are paying back around 200% of what you borrow depending on which company you go through and unlike banks they are not regulated by the government.

Answer 5

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RE :Are those Pay Day advance loan places a scam?
I have heard that they charge high interest for small loans.
Follow 15 answers

Answer 6

In agreement with everything that has been said, and also, pay no attention to the TV ads that talk about how quick and easy it is, along with 0% interest for the first 30 days. They start to stick you at day 31.

Answer 7

If you want 200 bucks loaned to you, you must pay back 240. It's not the worst thing in the world but only use for absolute emergencys.

Answer 8

Yes and no... They are not scammers but it is expensive to borrow a loan from them...

I used to pay 20 dollars per 100 that I borrowed and the payment date fell on the same day as my payday....

Answer 9

YES!! You will end up only getting about 40% of your paycheck after the advance comany takes their cut. This usually puts you in a cycle where you have to advance your pay again before your next pay period. Sell Blood before you use one of those places.

Answer 10

Usually not a good way to go. I have seen people get in more trouble by using them.

If you can't pay for it with the cash you have on hand, then you probably don't need it! If it's a bill, etc, there's always a better way.