Monday, May 4, 2009

America Gets a Pay Day Loan


It doesn't take a rocket scientist to figure out that pay day loans are a bad, I mean really bad idea. I was having a conversation with a co-worker today who told me she is still trying to pay off a pay day loan she had taken out... OVER A YEAR AGO. The loan itself was for 4 thousand dollars, since that time she has paid almost 8 thousand dollars in interest and still has more than 2 thousand remaining on the balance. While my co-worker was wringing her hands trying to figure out how to pay this down, the loan officer at this establishment was wringing his hands trying to figure out where to spend the money.

Will the United States ever pay off the loans we are currently taking out. Can we see anything other than debt on the horizon. Don't get me wrong, I blame Obama, the debt has sky rocketed under him. However, Bush was no Scrooge McDuck.

I imagine a good parent is willing to suffer now in hopes their children will have a better life. Instead we are getting a credit card in our children's name and maxing it out. This is unacceptable.

5 comments:

Anonymous said...

I share your concern. I do not see how the debt will get paid. Yes, it will wreak havoc on our children's and grandchildren's lives.

Mookie said...

Maybe we should all go out and get payday loans and then make sure there is no way for the companies to collect on them. Then we can just have the government print them up some money so they don't crash that sector of the economy completely!!!

emilywinkle said...

Payday loans are a great resource, but they need to be used responsibly just like a credit card or other traditional loan. Check 'n Go offers payday loans in many states, and also from the convenience of your own home. Visit www.checkngo.com for more information.

All In said...

Emily,

Nice of you to comment. What is the average interest rate paid on the average pay day loan? What is the average percentage paid in total interest in relation to the original note.

I am not saying that there isn't a place for them. I am saying that they are a last resort for the desperate. What does it say about our country that we are willing to go down this road.

All In said...

One more thing emily. Please do not use my blog for your advertising purposes. If you have an opinion I'm glad to hear it.