Comments on: Avoid These Three “Short-Term” Loans http://www.bargaineering.com/articles/avoid-these-three-short-term-loans.html personal finance blog with anecdotes, advice and commentary. Sun, 22 Nov 2009 01:39:04 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: AverageJoe http://www.bargaineering.com/articles/avoid-these-three-short-term-loans.html/comment-page-1#comment-295613 AverageJoe Mon, 26 Jan 2009 03:34:14 +0000 http://www.bargaineering.com/articles/?p=1934#comment-295613 The entire payday lending industry should be highly regulated. By using the word "fees" instead of "interest" they avoid usury laws, but in actuality are charging over 300% APY. Absolutely disgusting. The "refund anticipation" loans from tax prep companies are almost as bad. Add up the fees and the interest, and see what the total cost really is on an APY basis. Plus, refunds for those who e-file generally take only 1-2 weeks.....how much should someone pay to get their money 2 weeks early? There are certainly some consumers who are desperate for the money (maybe their facing eviction, or have huge medical bills) but I suspect the majority simply don't want to wait. I'm also sure that the tax prep employee gets a nice payout for convincing their marks (sorry, customers) to take advantage of an immediate payout.... In either industry, whether we call it payday lending or tax refund anticipation loans, it's mere semantics: They are 21st century loan sharks. Stay away at all costs! The entire payday lending industry should be highly regulated. By using the word “fees” instead of “interest” they avoid usury laws, but in actuality are charging over 300% APY. Absolutely disgusting.

The “refund anticipation” loans from tax prep companies are almost as bad. Add up the fees and the interest, and see what the total cost really is on an APY basis. Plus, refunds for those who e-file generally take only 1-2 weeks…..how much should someone pay to get their money 2 weeks early?

There are certainly some consumers who are desperate for the money (maybe their facing eviction, or have huge medical bills) but I suspect the majority simply don’t want to wait. I’m also sure that the tax prep employee gets a nice payout for convincing their marks (sorry, customers) to take advantage of an immediate payout….

In either industry, whether we call it payday lending or tax refund anticipation loans, it’s mere semantics: They are 21st century loan sharks. Stay away at all costs!

]]> By: BloggingBanks http://www.bargaineering.com/articles/avoid-these-three-short-term-loans.html/comment-page-1#comment-291027 BloggingBanks Mon, 03 Nov 2008 21:53:22 +0000 http://www.bargaineering.com/articles/?p=1934#comment-291027 Yes Jimmy, but saving is so boring. People want to live the glamorous lifestyle of celebrities now, they want flashy cars, expensive trips to nowhere and all the latest ipods, iphones and gadgets. Anyways an old saying says that there's nothing to prevent a fool from parting with his money.. The above mentioned first 3 sources of cash are three such wealth destructors for fools.. Yes Jimmy, but saving is so boring. People want to live the glamorous lifestyle of celebrities now, they want flashy cars, expensive trips to nowhere and all the latest ipods, iphones and gadgets.

Anyways an old saying says that there’s nothing to prevent a fool from parting with his money.. The above mentioned first 3 sources of cash are three such wealth destructors for fools..

]]> By: JimmyDaGeek http://www.bargaineering.com/articles/avoid-these-three-short-term-loans.html/comment-page-1#comment-290999 JimmyDaGeek Mon, 03 Nov 2008 15:24:17 +0000 http://www.bargaineering.com/articles/?p=1934#comment-290999 People need to change their mindset and learn to borrow from themselves. Instead of borrowing and paying interest to someone else for something you want NOW, save the money and buy it LATER. Then, repay yourself with interest as you would with a loan. You'll be amazed at the money you save. People need to change their mindset and learn to borrow from themselves. Instead of borrowing and paying interest to someone else for something you want NOW, save the money and buy it LATER. Then, repay yourself with interest as you would with a loan. You’ll be amazed at the money you save.

]]> By: Cap http://www.bargaineering.com/articles/avoid-these-three-short-term-loans.html/comment-page-1#comment-290990 Cap Mon, 03 Nov 2008 11:49:41 +0000 http://www.bargaineering.com/articles/?p=1934#comment-290990 Don't forget almost all cash advances will not have a transaction grace period... so the minute you take out a redit card cash advance, you'll start incurring the interest. Even though they are "not as bad" when compared percentage-wise to refund anticipation loans and payday loans --- cash advances APRs are still ridiculously high in the 20s to 30%. Avoid all of them as you would a rabies crazed squirrel. Don’t forget almost all cash advances will not have a transaction grace period… so the minute you take out a redit card cash advance, you’ll start incurring the interest. Even though they are “not as bad” when compared percentage-wise to refund anticipation loans and payday loans — cash advances APRs are still ridiculously high in the 20s to 30%.

Avoid all of them as you would a rabies crazed squirrel.

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