Should You Borrow From a Payday Loan Company?

After reading a great blog on how someone borrowed $200 and had a nightmare of an experience I decided to write this post. Most people know that people with bad credit have a difficult time getting a loan and must resort to measures that someone with good credit thinks it just, shameful. The fact is however that hard times come in all shapes and sizes and if you’re ill-prepared you may need to get a payday loan just to make it through.

You Can Read the Blog Post Here

There are typically lots of places you can get a payday loan or bad credit loan from and they seem to be more available in low income neighborhoods. But they aren’t just in brick and mortar type places now. In fact, many loan companies can be found online and you can even submit an application online for a payday loan. Some are even catered to specific areas. Take for instance loan companies in Columbia SC and you’ll see that just having a way to submit the application online is easy and you can get your loan in just a few minutes.

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Many times a person can get into a rotating loan where they never pay the loan off. Once they make a few payments they are offered to borrow again which adds more interest and more charges. It’s a vicious cycle that seems to never end once you’re caught in this trap.

So if you’re considering a getting a loan be sure you read the fine print and know the interest rate beforehand. Trust me, you’ll be glad you did once it’s said and done. There are also laws in place to protect people from some of these laws and they vary from state to state. Be sure to check with your state’s laws to understand what limits apply to you.

 

Woman Borrows $200 From Payday Loan. Guess What Happened Next?

We Hold These Truths To Be Self-Evident

paydayloansI’ve heard so many stories about people who take out payday and title loans, and how the interest is worst than borrowing from a loan shark.

Some years ago, I was called upon to do some research by an attorney to get information about a title loan company to see if they used what is called a “list serve” to serve them with summons.  What I found is that the owners of the company, in Illinois, also own a used car lot in the State of Georgia.   Title loan companies make loans that people cannot repay because of the high interest, then take possession of the vehicle.  So, it seems that this one such company was creating inventory for its own used car business.

In other words, I learned that such companies can be shady.

After watching David Allen’s video (posted below), I did a Google search and found…

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