Payday Loans; Good or Bad

Payday Loans; Good or Bad

By Keith Bunn Jr.

July 29, 2013

Payday lenders are everywhere. You see them on the way to the store, & you surely see them outside the front gates of most military bases. I even took out a couple of them when I was stationed down in Georgia back in the late 90's. But are payday loans good or bad?

Yes, they are everywhere except in 12 states. Why all but 12 states? That's because payday loans SUCK! Yes, I know I just said that I had taken out 2 of them before, that just shows how stupid I was about the subject back then. I was one of the lucky ones though. I didn't fall all the way into the trap. I was able to climb out of that mess pretty much unscathed. Unfortunately, that's not the story for thousands of other Americans across the country.

Predators

There is one other place I didn't mention above where you won't find payday lending facilities and that's on the wealthier ends of town. Not because the people there are wealthy, but because they are not the target market they are going after. Payday lenders go after the lower middle and lower class citizens. They prey on those who don't have a good credit score and think they need a loan, the ones who have fallen on hard times, and the ones who are scared and don't know where to turn. But when these lenders charge anywhere between 90% to 1,000% interest per loan, they are doing nothing but harming the very people they are saying they are helping, and what happens is the borrower gets into a deeper mess.

There is even online payday lending now, where they will even try to loan money to people in the states where they know it's illegal to do so. 

Collecting on the Debt

Normally what happens between the lenders and borrowers is eventually the borrower can't pay back the loan(s) and the lenders send them to collections, sells the debt to a debt buyer, or in more horrible methods, go to the borrower's home and try to collect. In all cases, the methods used to try to collect on these debts are unbelievably bad and break just about every federal law when it come to collecting on debts. I even know one woman who they came to her home at night to collect the debt and when she told them that she couldn't pay and tried to shut her door, they put their foot in the doorway so she couldn't shut it.

Are these the kind of people you really want to deal with? I think NOT! It is far better to get 2 or 3 part time jobs than to get 1 payday loan. To me, payday lending is nothing more than legalized loan sharking and should be banned in all 50 states. 

If you are a victim of payday lending, there is hope! There are tons of financial coaches, such as myself, out there that are willing to guild you through these hard times and get rid of your payday loans once and for all.

The reason I do this is to give people hope and to try to inspire others. To make them think about their finances, whether they are young or old, so they can win financially.

If you have any questions for me about my posts or about your finances, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!