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Preview: Comments on Life Lessons of a Military Wife: The Ugly Payday Loan

Comments on Life Lessons of a Military Wife (overseas in Europe!): The Ugly Payday Loan





Updated: 2017-11-11T22:40:42.387+01:00

 



I admire the way you express yourself through writ...

2011-05-12T16:21:56.568+02:00

I admire the way you express yourself through writing. Your post is such a refreshing one to read. This is such an interesting and informative article to share with others. Keep up the good work and more power. Thanks!



Well, 2 years go but the situation with payday loa...

2011-02-10T20:06:47.865+01:00

Well, 2 years go but the situation with payday loans today still the same... Is it good or bad i don't know, but 500% rate is really very-very high, especially for short time payday loans up to $1500.



If you don't, then you end up paying interest ...

2011-01-21T06:01:58.549+01:00

If you don't, then you end up paying interest rates around 400% or so when the interest is applied over a year's time. But, if used wisely, and how they're designed to be used, they are a great benefit to our society.



cash advances and payday loans come in handy when ...

2009-04-11T14:11:00.000+02:00

cash advances and payday loans come in handy when emergencies pop up, and one is a little short on cash. whether its for a kids birthday, the cable bill, or gas in the car; the fact is that everyone has hard spots. millions of people have taken advantage of this hassle free service.



I agree that taking out payday loans regularly can...

2008-11-03T19:06:00.000+01:00

I agree that taking out payday loans regularly can be a bad habit to get into, but in times like these it is necassary for a lot of people. As long as these people are paying back their loans on time, the interest rates aren't above normal credit card rates. The 500% rate is for the year, and hopefully if you take out a loan you're planning on paying it back in the time allotted. If you pay it back on time the interest rate is 36%, which is still expensive, but much more reasonable.



I think I see your frustration! And that's exactl...

2008-04-22T13:36:00.000+02:00

I think I see your frustration! And that's exactly what I mean about these darn payday loans...that you feel you have no other choice! No, I have never had to live hand to mouth, and I consider myself lucky...BUT, I have commanded young soldiers back in the day who got suckered in by these places instead of managing their nice sized paycheck...it's like playing with fire. That was my intended audience for the most part.

It sounds like your parents had an income problem...their debt issues were only as a result of that...and as long as people in such a situation accept that this is all they're going to get and this is all life has for them, then they'll continue to have to go to places like this to survive. And I think that's just plain rotten...shame on our society and school system for not teaching kids basic financial management and not getting more opportunities for young kids to succeed so that all they have to look forward to is minimum wage.

You're right, minimum wage is not enough to survive on and without outside assistance, many would go under.

I'm glad to hear that someone had a bright experience with a payday loan AND it sounds like your parents were able to get out of the vicious cycle these loans usually keep you in....I think you summed it up in your post...payday loans are not something you use on a regular basis, and if you have other options like I mentioned above...use 'em...



Um, if it wasn't for cash advances, my parents wou...

2008-04-22T06:48:00.000+02:00

Um, if it wasn't for cash advances, my parents would've lost their house 10 times over the years by now. Payday loans are good for emergencies like what my parents have had to deal with sometimes, but not on a regular basis. What you learn is that when you've been self-employed most of your life and you can't find a job working for anyone else, you have to take money where you can get it, even if it IS at an insane interest rate. When I was living with my parents, I thanked GOD for payday loans, lady. Without them, my family would NOT have been able to stay in their house long enough to get out of debt and find a new source of income. Paying the crazy interest on the payday loan is preferable to losing tens of thousands of dollars of interest paid in to the mortgage company over the past decade or more any day of the week. Everybody keeps talking about how evil payday loans are; well, they're not.

Have you ever even had to GET a payday loan before? If not, maybe you'll be in the situation one day where you can't get money from anywhere or anyone else and you'll appreciate their existence then. People should be aware of the interest rate when they get a payday loan, but people like you who have probably not ever had to set foot in one of these stores trying to advise people who DO have to use them really piss me off. Managing and saving money when you're a $10/hr employee and you have 2 or 3 kids to feed and a $1000/m house payment (when it should be $700, but they keep raising your interest rate) isn't as easy as you make it out to be.

Talking about how to save money seems to amount to a "game" to you. It's not a game to most people who actually have to go through it, so before you start talking about the "evils" of payday loans, maybe you should put on the shoes of someone who actually HAS NO CHOICE but to get a payday loan or lose their house. Or get their electricity cut off. Or pay their car payment so they can get to the job that has their paycheck on Friday. Or have grocery money until they get paid next week. Grow up.



Regarding Coinstar vs. the time it takes to roll c...

2008-03-03T22:26:00.000+01:00

Regarding Coinstar vs. the time it takes to roll coins, you might check with your bank.

Paying 9% for coin counting at the grocery store seems excessive to me, so over the last several years I've been rolling my own. The last time I took a bag of carefully-rolled coins into my bank (Wells Fargo), the teller asked for assistance from another teller, and the two of them spent a few minutes *opening* all of my rolls and emptying their contents into the tray of a big automated coin counter. When she came back, she said, "In the future, you don't need to bother rolling coins - we just have to dump them all in there anyway." So it would have been easier on them if I _hadn't_ rolled the coins, the counter's total exactly matched what I'd added up from the rolls, and there was no service fee.



Be sure to stop by and read more articles on debt ...

2008-02-19T13:40:00.000+01:00

Be sure to stop by and read more articles on debt reduction at the "Carnival of Reducing Debt", this month at:
http://www.paidtwice.com/2008/02/18/carnival-of-debt-reduction-127-welcome-to-the-snowflake-revolution/

Cinzea, I hear you on what your time is worth? It IS something we have to look at. I use this same argument when people ask why I pay for a financial planner when I could do that stuff myself. Well, because my time and effort is more valuable to me, spent in other areas of my life. As long as my financial planner keeps our investments over x% in the long run, we are happy..and so far, he hasn't let us down. We are in it for the long haul so don't stress over market fluctuations:-))



Payday loans a bad news and yes! they specificall...

2008-02-18T21:54:00.000+01:00

Payday loans a bad news and yes! they specifically target the military personnel. Congress knows this and is trying to do something to help it's soldiers. But don't hold your breathe.

As far as coinstar is worth: you have to calculate how long it will take you to roll $100 worth of coins? If it is a least an hour, what is your hourly wage (or time worth)? Let's say you earn $15 an hr. You have to earn at least $22 to net that $15 to spend. So you have to work one hour and 45 minutes on the job to net the one hour it will take you to roll the coins yourself and save the $15 of lost wages, and time rather than pay the $9 fee for a few minutes of the time it takes you to dump the coins into coinstar.

Penny wise. Dollar foolish. Literally. You have to ask yourself what your time is worth. If it is advantageous to roll the coins yourself, bring them to your bank, write your acct number on the paper roll first (because some banks won't take the coins if you don't have an account with them) then by all means, get rolling.

As for me, I never have more than $20 in coin, so I pay the $1.80 to coinstar. I find more than that on the street.

Just my 2 cents. LOL.



I'd rather pour $100 dollars of coins into the coi...

2008-02-12T21:00:00.000+01:00

I'd rather pour $100 dollars of coins into the coinstar machine and get $91, then have to pay someone $15 for every $100...that's just crazy. And the people who use payday loans aren't usually the ones who can even AFFORD the extra $15....that's why it's EVIL.



Payday Loans are not as bad as people think. For ...

2008-02-08T18:37:00.000+01:00

Payday Loans are not as bad as people think. For every $100 you borrow, you pay $15 in interest on the loan. But the problem lies when you don't pay the loan back in the short term. If you don't, then you end up paying interest rates around 400% or so when the interest is applied over a year's time. But, if used wisely, and how they're designed to be used, they are a great benefit to our society.



Thanks Linda for sharing! It sounds like you maxe...

2008-02-08T18:34:00.000+01:00

Thanks Linda for sharing! It sounds like you maxed out on the debt snowball...that's something worth maxing..unlike those credit cards. I had to laugh at the POW night...I bet if we all replaced one night of eating out with such a meal, not only would we be able to sock away what...about $50 a month...but we would also be able to use that as a teaching moment for our kids as a reminder of those who are less fortunate. Thanks for the tip!



I'm with Jacki on the Coinstar machine...I'm not g...

2008-02-08T15:57:00.000+01:00

I'm with Jacki on the Coinstar machine...I'm not giving ANYONE $9 out of $100 (and I DO have $100 in coins, if anyone wants to come roll them for me!).

My husband, ever the budgeter, used to have what he called "Prisoner of War Night" twice a month...just before payday. That was when he ate bread, rice and water, because that was all that was left till he got paid. But he never ever "floated" checks or used a credit card to buy groceries.

I am truly blessed to have found this man - he got me OUT OF SERIOUS DEBT. And I listened when he talked. Because I, with an accounting background, was too busy looking at the bark of the tree to notice the forest.

His best hint: Gather all your credit cards. Figure out how much you are paying each month...then start paying down. When I met him, I was the "proud" owner of over 25 credit cards...most of them were "store" cards and had HUGE interest rates (at least 21% or more). While I had low limits ($200-$500) on most, they were all maxed out. And I had FOUR major cards...ALL MAXED OUT. These carried higher balances of $1000-$5000. So you can just imagine how much debt I had.

I started by taking the card with the lowest balance due. I paid the minimums on all the other cards, and paid as much toward the first card. It took me 2 months but that one was paid off...and I cut it up, closed the account RIGHT AWAY, not AFTER I paid it off. When I decided that was the card I was paying off, I cut it up.

Now I had a few more dollars to put toward another card. Took the next lowest balance. Paid that off in one payment. And so on and so forth. It took me well over 2 years to get the debt down and the cards paid off. But I did it. And now, we, together, have 4 credit cards. Two cards (major) are joint account cards, so technically that's only one card. The other major card is one I've had for years, but use very little. It's tied to paypal/ebay, so I only use it then (and that's not often). And we have a Sears card...why I keep it, I don't know!

But we pay our debt off monthly. And we watch our pennies.

And we have NEVER (even I, as much debt as I was in) EVER taken a payday loan. Like you, I absolutely HATE seeing those places right outside the gate (along with strip clubs and used car "E-1 and up approved" dealers).



And it's the little fees and charges like this tha...

2008-02-08T15:26:00.000+01:00

And it's the little fees and charges like this that pick away at what we earn! If you track what you give out for a month, you can quickly see where you can eliminate money wasting such as on things like this nifty machine (it is cool to watch though, isn't it?)!



There is a nifty little machine inside the grocery...

2008-02-08T14:38:00.000+01:00

There is a nifty little machine inside the grocery store near my house. It will roll all your loose change for you. All you have to do is dump the jar of coins into the slot and it counts it and spits out bills (and any leftover change).
And in very small print it says it only charges you 9 cents on every dollar. THAT IS 9% PEOPLE. THAT IS $9 ON EVERY HUNDRED!!!
I can roll pennies cheaper than that. As a matter of fact all the coins the kids roll themselves they get to keep!