PayDay Loans—Borrower BEWARE!! | Miki's Hope

PayDay Loans—Borrower BEWARE!!

Sunday, February 24, 2013


I have heard and read about PayDay loans for many years now, long before I started blogging—even considered taking one out at some point but never did. Something about them just didn’t sit right with me. Well, it turns out I was correct. Baby, my cat decided once again to wake me up at 2:30 AM—so I turned on the computer and saw that The New York Times had an article about it! Click to read the entire story--

Major Banks Aid in Payday Loans Banned by States
By JESSICA SILVER-GREENBERG
Published: February 23, 2013


Now very little in this article surprised me—What I did not know was that these loans have been banned in 15 states!! I was not surprised that the big banks were actually helping these scalpers-which is what they are in my opinion-the interest rates they are charging is nothing short of criminal! According to the article these rates can sometimes exceed 500%. From what I have heard over the years you would actually be better off borrowing from a loan shark (DO NOT do this either-but their rates are supposedly lower then those stated in the article).

As a blogger I get numerous “spam” comments daily—which I am sure everyone else does as well—the bulk of them are for cheap priced prescription drugs or lately PayDay loans—I dutifully delete these comments as I am sure many others do as well. Most times they are marked as spam by my email and are easily deleted—some manage to sneak through-but I get rid of them as well—It now makes sense to me why they are having people sneak these ads into blog post comments—A lot if not all are in other countries-having been banned here-where the laws are not so harsh.

I suggest you click into the above article and read it—it will open your eyes wide and hopefully you will never take out one of these “loans”.













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10 comments :

Beckey said...

Thanks for sharing that.

Mama to 4 said...

Thank you for sharing, I will have to keep it in mind for a loan. I delete all spammy e-mails too, I get lots of them!

Kim Croisant said...

I would absolutely never take out a loan like this. I'm sure the interest rate is sky high. Plus my credit is great and there would be no need to even think about doing this. Thanks for the heads up, b/c so many young people do this and then can't pay it back.

Jennifer Williams said...

I have seen so many people get caught up in this. I can understand maybe once to get by, but then once turns into twice and it ends up being a necessity instead of an only because it is an emergency. I have seen two couples lose everything because of these loans allowing them to spend more than they had - house, cars I everything. Very sad.

Andrea Kruse said...

Groups like this prey on people who either can't keep a balanced budget or fall on hard times. Really a shame. Glad that it has never been an option my family has needed to consider.

HorsingAround InLA said...

Oh yeah. I'd never take out any loan like this! Especially these "pay day" loans! NO WAY! I keep my budget and stick to it!

TerinAleah said...

That is crazy!! 500%?!

Alaina Bullock said...

Wow! How crazy! Unfortunately, I have taken out Payday loans before, and can tell you from first hand experience...DO NOT DO IT! Thankfully, I was able to pay mine off quickly and did not suffer those ridiculous amounts of interest!

hippie_mom said...

I have never taken out a payday loan, but I've heard horror stories from people who have. Thanks for sharing!

AMBER EDWARDS said...

I knew the rates were horrible, just didn't know the %. They are just plain evil preying on people who hit a rough patch. We stay far away from them, and I ban anyone who tries to promote them on my sites.

 
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