Apr
5

Does the initial need for a payday loan out weight the long term cost of that loan?

payday loan
Oakine asked:


I have been seeing people on tv that have taken pay day loans out for friends that ave not been repaid. Then they take them to court to get there money back. The problem is that these loans have such high interest rates that they continue accumulating costs. What are some of the ways to avoid this type of situation?
This question has nothing to do with needing money, it is only a question of money and its affects when you are in need. Not to have offers of cheap rates or loans.

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3 Responses to “Does the initial need for a payday loan out weight the long term cost of that loan?”

  1. Kathryn
    April 7th, 2008 at 12:52 am

    I think that taking out a payday loan will only make a person’s financial problems worse. They should be avoided at all costs. If I were in that position, I would ask my employer for an advance on my salary, or I would try to borrow money from a friend or family member.

  2. MSAD
    April 9th, 2008 at 11:48 am

    The interest rates on the pay day loans is close to 400%.

    Never take out a pay day loan.

    And I have a personal belief — you don’t loan money to other people. If you can’t make a gift of it — then the answer is “no”.

    You NEVER borrow money to loan it to someone else. If that person’s credit situation is so bad that they can’t get a pay day loan of their own at 400% –WHY IN HEAVENS NAME DO YOU THINK THEY WOULD BE ABLE TO PAY YOU BACK?

  3. John l
    April 11th, 2008 at 12:14 am

    Oakine, Be careful if you decide to apply for an online cash advance. Each state has different regulations, and I’m not familiar with the all the rules and regulations. Maybe you can find a local cash advance office so you can get advice before taking out the loan.