Comments on: PayDay Loans – The Math Just Never Makes Sense http://www.discoverdebtfreedom.com/2008/04/21/payday-loans-the-math-just-never-makes-sense/ Get Out of Debt and into Wealth Thu, 29 Dec 2011 07:28:55 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Not All The Same http://www.discoverdebtfreedom.com/2008/04/21/payday-loans-the-math-just-never-makes-sense/comment-page-1/#comment-305 Not All The Same Fri, 02 May 2008 19:17:07 +0000 http://www.discoverdebtfreedom.com/2008/04/21/payday-loans-the-math-just-never-makes-sense/#comment-305 True, not everyone should consider taking out a payday loan especially if they know that they won’t have the ability to pay back on their next payday. However, payday lenders should not all be lumped into the same category and furthermore, laws vary depending on the state. Some states allow customers to make several payments with a certain percentage of pay down while others make it mandatory to pay off in full. Mandatory pay-offs are not the lenders decision but the legislators. In addition, all payday lenders that are a part of the industry’s trade association allow individuals with extreme financial difficulty, to make equal payments on the loan amount without any additional interest. All payday lenders are not out to “trap” their customers. True, not everyone should consider taking out a payday loan especially if they know that they won’t have the ability to pay back on their next payday. However, payday lenders should not all be lumped into the same category and furthermore, laws vary depending on the state. Some states allow customers to make several payments with a certain percentage of pay down while others make it mandatory to pay off in full. Mandatory pay-offs are not the lenders decision but the legislators. In addition, all payday lenders that are a part of the industry’s trade association allow individuals with extreme financial difficulty, to make equal payments on the loan amount without any additional interest. All payday lenders are not out to “trap” their customers.

]]> By: Whitney http://www.discoverdebtfreedom.com/2008/04/21/payday-loans-the-math-just-never-makes-sense/comment-page-1/#comment-302 Whitney Mon, 28 Apr 2008 22:36:35 +0000 http://www.discoverdebtfreedom.com/2008/04/21/payday-loans-the-math-just-never-makes-sense/#comment-302 I have used payday loans and found them to be very helpful. I was off work for a few days sick and when I received my paycheck it was short. I had bills to pay so I used a payday loan to suffice. I was able to make up some hours and work some overtime on my next check and that covered the payday loan. There are many stories like mine of people who enjoy having payday loans as a credit option. In fact everyone I know that has used payday loans is happy with the service and has benefited from the service. I had friend get a payday loan to fix his car when it broke down. If he had not been able to fix his car he would have lost more income due to lack of transportation; using public transportation is not an option for him because he uses his automobile to take his work supplies/tools to job sites. He was able to pick up a couple extra jobs on the side and pay off his payday loan. My daughter used a payday loan to cover a medical bill that was on the verge of going to collections and then paid off the loan with her income tax refund. Not every consumer of the payday loan industry finds them self trapped and not able to pay back the money they borrow. Bad news is always the “interesting” news. Why isn’t anyone listening to the people who successfully use the service and APPRECIATE it!!! I have used payday loans and found them to be very helpful. I was off work for a few days sick and when I received my paycheck it was short. I had bills to pay so I used a payday loan to suffice. I was able to make up some hours and work some overtime on my next check and that covered the payday loan. There are many stories like mine of people who enjoy having payday loans as a credit option. In fact everyone I know that has used payday loans is happy with the service and has benefited from the service. I had friend get a payday loan to fix his car when it broke down. If he had not been able to fix his car he would have lost more income due to lack of transportation; using public transportation is not an option for him because he uses his automobile to take his work supplies/tools to job sites. He was able to pick up a couple extra jobs on the side and pay off his payday loan. My daughter used a payday loan to cover a medical bill that was on the verge of going to collections and then paid off the loan with her income tax refund. Not every consumer of the payday loan industry finds them self trapped and not able to pay back the money they borrow. Bad news is always the “interesting” news. Why isn’t anyone listening to the people who successfully use the service and APPRECIATE it!!!

]]> By: Payday Lending Rep http://www.discoverdebtfreedom.com/2008/04/21/payday-loans-the-math-just-never-makes-sense/comment-page-1/#comment-283 Payday Lending Rep Thu, 24 Apr 2008 14:24:33 +0000 http://www.discoverdebtfreedom.com/2008/04/21/payday-loans-the-math-just-never-makes-sense/#comment-283 While critics of the industry assign labels to payday lending customers in an attempt to further their political agendas, the fact is that we provide services to a broad cross section of Americans because there is widespread demand for the financial service we provide. Our customers represent a large demographic segment and cannot be grouped based on race, sex or religion. Research shows payday advance customers to be middle-income, educated, working families, 58 percent having attended college, and one in five having a bachelor's degree. Payday advance customers are not the “un-banked”, as 100% have a checking account at a credit union or bank, but turn to payday lenders for low dollar short-term credit needs. Millions of customers across the country have used payday advance responsibly and appreciate having somewhere to turn when they need quick access to credit. Analysts estimate payday advances were used by 19 million households in 2006. State regulators confirm that, out of millions of customers, there are very few complaints. While critics of the industry assign labels to payday lending customers in an attempt to further their political agendas, the fact is that we provide services to a broad cross section of Americans because there is widespread demand for the financial service we provide. Our customers represent a large demographic segment and cannot be grouped based on race, sex or religion. Research shows payday advance customers to be middle-income, educated, working families, 58 percent having attended college, and one in five having a bachelor’s degree. Payday advance customers are not the “un-banked”, as 100% have a checking account at a credit union or bank, but turn to payday lenders for low dollar short-term credit needs.

Millions of customers across the country have used payday advance responsibly and appreciate having somewhere to turn when they need quick access to credit. Analysts estimate payday advances were used by 19 million households in 2006. State regulators confirm that, out of millions of customers, there are very few complaints.

]]> By: Murray http://www.discoverdebtfreedom.com/2008/04/21/payday-loans-the-math-just-never-makes-sense/comment-page-1/#comment-276 Murray Mon, 21 Apr 2008 23:09:30 +0000 http://www.discoverdebtfreedom.com/2008/04/21/payday-loans-the-math-just-never-makes-sense/#comment-276 If I overdraw my Account at the Bank or Credit Union and they advance me the money for a small fee, should I stay away from these places too. Banks fees are being ignored and cost more money than any payday loan company can charge. Here is an example, My son used his debit card to make a purchase for 3.50, he only had $1.50 in his account so the bank helped him out and paid the $2.00 difference, for a SMALL FEE of $35.00. I did the math for you. Cost of $2.00 overdraft when bank fee is $35.00 Days APR 1 638750.00% 2 319375.00% 3 212916.67% 4 159687.50% 5 127750.00% 6 106458.33% 7 91250.00% 8 79843.75% 9 70972.22% 10 63875.00% 11 58068.18% 12 53229.17% 13 49134.62% 14 45625.00% 15 42583.33% Maybe you should look at the whole picture and do a little comparison yourself. If I overdraw my Account at the Bank or Credit Union and they advance me the money for a small fee, should I stay away from these places too. Banks fees are being ignored and cost more money than any payday loan company can charge. Here is an example, My son used his debit card to make a purchase for 3.50, he only had $1.50 in his account so the bank helped him out and paid the $2.00 difference, for a SMALL FEE of $35.00. I did the math for you.
Cost of $2.00 overdraft
when bank fee is $35.00
Days APR
1 638750.00%
2 319375.00%
3 212916.67%
4 159687.50%
5 127750.00%
6 106458.33%
7 91250.00%
8 79843.75%
9 70972.22%
10 63875.00%
11 58068.18%
12 53229.17%
13 49134.62%
14 45625.00%
15 42583.33%

Maybe you should look at the whole picture and do a little comparison yourself.

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