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Payday Loans - Loan Sharks or Life Saver?

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Payday Loans - Loan Sharks or Life Saver?

http://www.timesdispatch.com/servlet/Satellite?pagename=RTD%2FMGArticle%2FRTD_BasicArticle&%09s=1045855935241&c=MGArticle&cid=1149192867067&path=%21news%21vaapwire
from JoeUser Forums

A few years ago, I noticed all these shops popping up.  They were advertising short term loans for the cash strapped.  Up to $500!  For that short term loan to tide you over to payday.  I did not think much of them, nor did I ever try to avail myself of them.  I knew the catch without going in to check on it.  They would charge a fee for a loan of a week or so.  And annualized, that fee was worse than a cash advance on a credit card.  How else could they do business?

But I figured that perhaps there were some fish out there that would swallow the spiel and take advantage of them.  But since they were up front about the charges, I saw no problem.  You make your own decisions.

The annualized interest rates turned out to be about 360+% or some such ungodly number.  Ok, So?  It is short term, and not mandatory.

But then our over protective legislature decided that "This MUST stop!".  Because the rates were akin to loan sharking.  Even though they opened the door for the loans to be legal.  Until they went back to remedial math and figured out the annualized percentage rate.

I am sure there are many states that do not allow these type of loans.  Pappa government must protect their little chicks.  But I am curious.  Does anyone think they are a bad idea?  This is not a long term loan, but they company needs to make some money or they cannot stay in business (remember the joke about the Rolls Royce owner getting a $5k loan and using his car for collateral in ManHattan - and then paying it off in 30 days and the interest all $15 of it? Parking in Manhattan for 30 days for $15 dollars!).

Personally, while I have never done a cash advance on a credit card (due to the up front 2% fee plus macaroni and cheese is not a bad dinner), I would have had I ever been in those straights.  But for others (as my wife is a paralegal in bankruptcy), I do understand that some just cant manage money to save a penny.  So why not let them avail themselves of this service.

Or not.  I guess I cant see why Papa Government would even care.  And by deciding it is bad, they are basically going to shaft the poor (when was the last time a middle or upper income person needed a short term $500 loan?).  The poor cannot go to a bank for a loan.  So they have 2 choices.  Payday, or Guido.

If I was there, I would chose Payday.

4,316 views 30 replies
Reply #26 from JoeUser Forums Top
In my experience the money isn't really there to be made on cut-rate systems. I have a hard time believing anyone can do it by hand cheaper than Dell. The money I have made has come from people who want quality and are willing to pay for it.

On higher-end systems Dell STILL has to make their prices competitive. They just save money on the parts that people don't ask about. People that hire me to build systems for them want the whole thing to be good, and not just a system with a few gems and the rest as cheap as possible. That, and they know that what I build will be sitting there running 5 years later, and if it isn't, they know I'll answer their call.
Reply #27 from JoeUser Forums Top

a low end Dell is not any better quality than a low end eMachines

Gack!  Bite your tongue!  eMachines are crap!

Dell isn't my competition; oddly enough, WalMart is. For some inexplicable reason, the uninitiated think that if WalMart carries it, it MUST be good.

Yea, until you get to the warranty.  My hourly rate means that a machine out of warranty is going to cost you as much as you paid for the machine. I like the Dell warranty,

But to each his own.

Just do not mention eMachines here again!  I will hex you! (does it show I hate them? )

Fences - Organize your desktop icons today!
Reply #28 from JoeUser Forums Top

Reply By: BakerStreet

Baker, in the spirit of brevity, I just quoted your name.  But in the cut throat game of computers, I ditto your comment.  Yes that is the game!  And my philosophy as well.

Now, do you have any spare parts for me?  Given my utilities problems?

Reply #29 from JoeUser Forums Top
Yea, until you get to the warranty. My hourly rate means that a machine out of warranty is going to cost you as much as you paid for the machine. I like the Dell warranty,


Yeah, that's why I usually recommend Dell to anyone who asks about low end computers: their service and support rocks, and they offer good warranties.

Like Baker said, though, there's quality to consider. There are parts I just won't put in a machine that I would build, and that makes my baseline price a bit higher.
Reply #30 from JoeUser Forums Top
Like Baker said, though, there's quality to consider. There are parts I just won't put in a machine that I would build, and that makes my baseline price a bit higher.


Same here! For me it is a build. For the desk jockey, that wants to write documents and read email - Dell.