Economics: PayDay Loans- Bastards or Black Sheep?

[DBTrek]

These places can literally get working class people/poor people into debt really easily since they have to not only pay the interest but the actual amount loan by a certain date or they will start to owe the payday loan money. It can get so bad that it will ruin your credit, your house and/or your car can be taken by them (since they want you to put a collateral on the loan just in case you can't pay it all off at once), etc...

Any system can be used in a stupid and self destructive way.
You can drink water until you die, if you want to.
Should we forbid water?

McDonalds serves obese people shitburgers that will literally kill them.
Where's your savior instinct now?

[Penner]

I mean.. get real..

The Walmart greeter, living in an apartment and using a payday lender occasionally to catch up on bills is far freer than that guy down the road in the overpriced Mcmansion, fucking around with maybe half a million in debt when you total up the auto loans, mortgage, and student loans. Most of middle class guy's year is spent literally slaving for banker's (pay off that interest!!) whereas Walmart greeter guy is maybe down fifty bucks in interest for his short-term loan. Then middle class guy goes online to talk about how evil the payday lender is and how the Walmart greeter is getting fleeced. LMFAO.

Most places usually want the loan AND interest paid off within two weeks. That is a recipe for disaster for a lot of people since they usually go to these places because it's a last resort.

[Hanarchy Montanarchy]

Since the notion of getting a payday loan to keep from starving was already introduced as a mark in their favor, I think it is fair to expand on that idea.

If I am compelled to enter a contract on threat of death, am I really entering it 'freely?'

The only way you can feed yourself is by taking money from a payday lender?

What happened to your credit cards, SNAP, WIC, TEFAP, SFNMP, benefits, and where did the local food banks and all your friends and family vanish to? Even the jails have closed? Goddam!

... and I'm sorry, but the local Hanarchy Montarchy's of your state have decided to save you from payday lenders by shutting them down, so you're going to have to starve.
But hey, at least you won't starve in debt, right?

Like I said, I didn't bring it up.

I guess we can abandon the whole 'super vital tool for the poor to survive' argument in favor of payday lenders.

[Speaker to Animals]

I mean.. get real..

The Walmart greeter, living in an apartment and using a payday lender occasionally to catch up on bills is far freer than that guy down the road in the overpriced Mcmansion, fucking around with maybe half a million in debt when you total up the auto loans, mortgage, and student loans. Most of middle class guy's year is spent literally slaving for banker's (pay off that interest!!) whereas Walmart greeter guy is maybe down fifty bucks in interest for his short-term loan. Then middle class guy goes online to talk about how evil the payday lender is and how the Walmart greeter is getting fleeced. LMFAO.

Most places usually want the loan AND interest paid off within two weeks. That is a recipe for disaster for a lot of people since they usually go to these places because it's a last resort.

Penner, the interest on a short-term loan is usually less than fifty bucks. The purpose of the loan is to get you from now until your next paycheck (presumably in two weeks). You get like maybe $200 to pay your utility bill, and when you get paid next, you pay the lender $250.

Put that into perspective in the context of rising tuition, student loans to the tune of hundreds of thousands of dollars, mortgages sky-high because the banks flooded the real estate markets with easy credit, etc. etc.

You are going after the wrong monster.

[DBTrek]

Penner clearly knows better than the people who need the loans.
Thank God she's here to warn us all that there's high interest attached to short term, no collateral, high risk loans.
She may not know why, but she's pretty sure it's about destroying the poor.

Afterall, the main goal of payday lenders is to exterminate their staple clientele.

[Martin Hash]

Poor people are paying 15% of their total income to old people but nobody says a fucking word.

p.s. Except me, I’m against all regressive taxation, Sales tax included.

[DBTrek]

Like I said, I didn't bring it up.

I guess we can abandon the whole 'super vital tool for the poor to survive' argument in favor of payday lenders.

I can see you're certainly anxious to discard that argument.
Sadly, you've produced nothing to refute it, so it's going to hang around in spite of your negative feelers.

Maybe spend more time examining the argument instead of trying to discard it with your emotions.

[Penner]

You mean that they are not squeezing as much money as possible to their "clientele"?

WASHINGTON - A report by a federal watchdog has found that about half of all payday loans are made to people who extend the loans so many times they end up paying more in fees than the original amount they borrowed.

The report released Tuesday by the Consumer Financial Protection Bureau also shows that four of five payday loans are extended, or "rolled over," within 14 days. Additional fees are charged when loans are rolled over.
"We are concerned that too many borrowers slide into the debt traps that payday loans can become," said CFPB Director Richard Cordray in a written statement. He said reforms are needed to ensure Americans have access to other "small-dollar loans" that are more consumer-friendly, that would help them get ahead of debts instead of putting them behind.

Payday loans, also known as cash advances or check loans, are short-term loans at high interest rates, usually for $500 or less. They often are made to borrowers with weak credit or low incomes, and the storefront businesses often are located near military bases. The equivalent annual interest rates run to three digits.

The report also found that only 15 percent of borrowers who take out payday loans are able to pay off the loan on time, without taking out another loan within 14 days. The remaining 85 percent either default on the original loan or take out a new one, trapping them in a never-ending cycle of debt.

https://www.cbsnews.com/news/payday-loa ... e-of-debt/

[DBTrek]

A LESSON ON SPOTTING SOMEONE WHO HAS RUN OUT OF ARGUMENTS

What was said:

I’m not asking folks to praise, celebrate, or even like payday lenders. I’m just asking them to understand how and why the system works as it does before they decide to deprive their neighbors of an economic tool.

How people with no argument try to emotionalize what was said:

I guess we can abandon the whole 'super vital tool for the poor to survive' argument in favor of payday lenders.

The whole argument was that this is a vital economic tool for the poor, and it is borderline cruel, and certainly ignorant to deprive them of it by placing too many restrictions on the practice.

It's like the crazy-gene takes over and they just start losing it. The points are unassailable, so the only recourse left is to froth at the mouth and shriek misinterpretations of the argument at people.
/shrug

[DBTrek]

You mean that they are not squeezing as much money as possible to their "clientele"?

WASHINGTON - A report by a federal watchdog has found that about half of all payday loans are made to people who extend the loans so many times they end up paying more in fees than the original amount they borrowed.

The report released Tuesday by the Consumer Financial Protection Bureau also shows that four of five payday loans are extended, or "rolled over," within 14 days. Additional fees are charged when loans are rolled over.
"We are concerned that too many borrowers slide into the debt traps that payday loans can become," said CFPB Director Richard Cordray in a written statement. He said reforms are needed to ensure Americans have access to other "small-dollar loans" that are more consumer-friendly, that would help them get ahead of debts instead of putting them behind.

Payday loans, also known as cash advances or check loans, are short-term loans at high interest rates, usually for $500 or less. They often are made to borrowers with weak credit or low incomes, and the storefront businesses often are located near military bases. The equivalent annual interest rates run to three digits .

The report also found that only 15 percent of borrowers who take out payday loans are able to pay off the loan on time, without taking out another loan within 14 days. The remaining 85 percent either default on the original loan or take out a new one, trapping them in a never-ending cycle of debt.

https://www.cbsnews.com/news/payday-loa ... e-of-debt/

Might help if you read the original post instead of spamming political talking points which have already been covered in detail.