Is it A Rip Off To Get A Pay-Day Loan ???

Question

I am Short On money and thinking about it.....is it a bad idea?

Answer 1

Yes. They are short term loans with very high interest rates. I had friends who did this and they ended up taking out a fresh loan each payday to cover the one from the previous payday and never caught up.

Answer 2

They can be major rip-offs. I would suggest that you borrow money from a friend or family member if possible. The average APR on a credit card is 16%...the average APR on a payday loan is like 400%. There are a lot of fees involved right off the top. Also, if you're not able to pay back the loan after the allotted time, you would have to take out another loan. It snowballs from there and makes things really difficult.

Answer 3

Borrow from family, friend or employer. Who in their right minds would pay what amounts to 300% annual interest to borrow money when you include the "application fee" and repayment schedule??? If you really want to know the problems behind doing it, go to the Yahoo Answers Archives and read the horror stories of people who have had to take another and another and another to keep up. It's worse than the credit card trap and if you don't repay (guaranteed with a personal check), you could be held liable for legal prosecution. Do you still think it's a good idea???

Answer 4

Abso-tively Posi-lutely a rip. If you can't pay it back in time, the interest will kill you. May as well go to a loan shark. As much as I despise having to ask for help from family or friends, I'd do that before going to one of these loan stores.

Answer 5

REALLY BAD IDEA ..enormous interest rates [over 400%] and you often end up just making interest payments or borrowing more to pay their stupid costs...try a family member or friend but be sure you can pay them back quickly and set it up in writing..otherwise,,tuff it out... anything besides a pay day loan!!!!

Answer 6

You usually get better rates bouncing checks. Paying late is better than payday loans. There is a reason they are only located in the parts of town where everyone is BROKE.

Answer 7

I have a friend who started to do this. However, then she was getting a pay-day loan nearly every week because of some of the fees associated with it, were eating up what was left. If you do it, MAKE SURE you have enough to cover the excess on the next week.

Answer 8

You seem to imagine of that you will be on "welfare" continuously. Sorry, yet it would want to now no longer happen. The longest that maximum households proceed to exist welfare is eighteen to 24 months in maximum circumstances. Even the Katrina victims seldom were given extensions previous that. that is now talked about as non everlasting help for Needy households for a reason. shifting aspects to cover them from lenders is adverse to the regulation, and a criminal in maximum states. between diverse subject matters, they are able to void the move and seize the aspects. that is likewise conceivable to be prosecuted criminally. correct that is the authentic kick interior the tooth for you. when you're in a state that would not enable seizure of your position to fulfill a judgment (which includes TX or FL) shifting the residing house to some different person now leaves it open to seizure. i do now no longer understand who this "Small Claims Clergy" is that you communicate with, yet that feels like some stupid conspiracy theorist rant, IMHO.

Answer 9

Big time ripoff! Try to borrow from friends and/or family if possible....just make sure it's your top priority to pay them back.

Answer 10

yes. it generally is usurious. had it been a mortgage loan, I am almost certain you'd refuse to sign. learn financial math...it will serve you well the rest of your lifetime.