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Got a question, hope someone can answer... Why is Discover Card stock (MA) dropping? Many thanks for any comment. Second question of mine... I just saw a payday loan company advertising on TV, and in big black letters it said typical APR 2356%. |
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Good question... I dunno what is the right answer to your question. I'll do some Googling and get back to you if I got an decent answer. You should email the people at Discover Card as they probably could give you help..
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The EU has special full-disclosure laws about all sorts of things. Most likely including financial instruments like this..
I live a kilometer from Germany and sometimes when I ride my bike closer to the border I end up linking up with a German cell tower and I always get a text saying "This is how much a call, text and data will cost.". (Kinda related) I live in Austria and saw for the first time last night one of those "Cash for Gold" commercials that are all too common in America. I confirmed with my girlfriend who was born here, and she said she had never seen anything like that before.. Also found salted butter at the grocery store this morning which made me very happy.. This post has been edited by. Mike SIU. : 12 January 2010 - 08:46 AM.. |
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Thirdly, payday loans directly from Europe are illegal in the US..
This is where a lot of people get in trouble. If your going to get a payday loan (which I highly advise against) at least get it from your bank/and or store front where you at least have some recourse if something should go wrong. (Such as company not honoring your request to stop Ach withdrawal, or working out some kind of payment plan if you get in over your head)... |
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No, I've no interest in payday loans. I was just amazed that they could advertise such extortionate rates on the TV. I guess the age of highway robbery is not dead..
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Here you see adds for payday loans all the time, generally tho they do not post the interest rate. You see all these people "happy" because they got the cash they need.. but nothing about the extortionate interest rates..
And they are also generally store front advertisements on the tv. Not someplace on the information highway that the US does not have any regulation against.. Not only that.. depending on the state that they were advertising in it would be illegal as alot of states are now making it illegal for payday loans in general NY comes to mind.. This post has been edited by. Beli. : 12 January 2010 - 09:08 AM.. |
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If any poster here finds themselves stuck with payday loan(s), the.
Easiest way to get out from under them, if you cant afford to outright. Payoff, is when you re-write the loan, write it for $25-$50 less than. What you just paid. Its a hit, but it will slowly work down the loan.. $250, re-write for $200, re-write for $150, etc.. Of course, paying (with Discover card) it off the 1st time is the route to go, but if you cant,. You can begin to dig yourself out using the above "method"... |
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Actually, that's not how payday loans work..
Say you take a loan out for 250. Your "roll over/interest" fee is 50 if you don't pay the full thing back in two weeks. You have to pay 100 when your next payment is due in order for it to go down to 200.. If your only paying (with Discover card) "50" every paycheck, to keep rolling it over, your not getting anywhere. Your loan balance is still only 250. You gotta pay ABOVE the interest/roll over amount in order for the loan to go down... |
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Actually, from someone that's been in Payday loan hell, my suggestion is.
Exactly how they work.. If I borrow $250 and write a check for $300, then I owe $300.. If I pay that $300, but I'm now broke, so I would need cash, rather than. Writing another $300 check, write a check for $250 and receive less money ($200).. Each time you cant pay back the loan in full, re-write for a lessor amount... |
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That's NOT how it works.. been there done that..
You have to pay ABOVE the interest rate/Roll over fees in order for the payday loans to go down.. So say you borrow 300 (going by cashnetusa schedule) They deposit 300 into your account. Their roll over/Interest payment on 300 is $75. You pay them $100 because you don't have the full loan balance your loan will be down to to $275. The $75 is interest/rollover amount, and the $25 goes to the actual loan... |
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Effective annualized APR's are ALWAYS going to be higher when a short term loan is contrasted with a lengthier note. People need to look at the big picture and realize that math is fun.....
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I cant argue math with you. I can argue experiences and my experience.
Was paying (with Discover card) down the check loan by paying (with Discover card) it in full, then re-writing for. A lessor amount. Why you cant see the simplicity in that, I have no idea... |
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Sonic, Beli is right..
If he borrows $300, they would need a post dated check for $375 which would be the loan plus interest (using post dated checks to illustrate the example.). He would then come in and buy the $375 check back and then write another one for $350 which would net him $275 in cash to live on for the next two weeks.. This post has been edited by. Jtoast. : 12 January 2010 - 10:46 AM.. |
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And what would happen if you lowered the amount EACH time you renewed?.
What would happen if you dropped your renewal by an additional $25?. In your example,. $375 nets $300.. $375 paid, renewal for $300 to net $250. $300 paid, renewal for $250 to net $200. $250 paid, renewal for $200 to net $150. $200 paid, renewal for $150 to net $100. Repeat until complete and obviously increase the amounts when possible.. Notice, the amounts being written for a lowering and lowering.. Notice, that eventually you will reach zero.. So again, what am I missing? Considering I did exactly what I'm talking about. When I was stuck in payday hell (3 Payday loans going at once 4 years ago)... |
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They're bad news in general, but they did save my a$$ from eviction when I was just post-BK and earning all commission..
At the time (early 2006), I usually made at least $2000 a month take-home, which was enough for my post-BK living expenses. However, since I had just discharged, I had NO savings, and I had a bad month commissionwise and only brought home $650, when my rent alone was $900.. Having no credit cards and no savings, my only option was a payday loan...and according to the laws of the state I then lived in, they had to be repaid in full plus fees in a month, so each month, I repeated the cycle, due to the big chunk coming out and of course again being unable to pay. What got me out 4 months later was a bigger-than-average commission check..... |
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Sometimes a payday loan is the lessor of 2 evils, we just need to remember that.
It is an evil and can be quite "sticky" once you get involved in them.. But, like you, I have used them when the alternative was worse..... |
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Problem with your example.. where's the Interest/roll over? With your example it looks like your only paying (with Discover card) down principal. Your.
Not including interest/fees. Unless i'm missing something... |
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If you write a check for $350 and receive $300, your interest is $50..
If you pay off that check ($350) and rewrite for $300, receiving $250,. Then you've paid $50 in principal... |
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You're missing something..
Both are saying the same thing.. His interest or rollover fee is covered by borrowing $250, and the repayment check is for $300. Then the new loan gives him back $225, but he'll have to give them a check for $275 to pay it, etc... |
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Those repayment scenarios above are awful. Talk about getting hosed. Dang..
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Again *NO*..
If you pay off that 350 check, and you give the payday place another check for 300,. Your getting ANOTHER LOAN. Not paying (with Discover card) the first loan off. You already paid that off when you gave them the check for $350.. This post has been edited by. Beli. : 12 January 2010 - 12:00 PM.. |
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It will allow someone with very little spare cash to work themselves out of the hole..
Obviously, if they can contribute more to the process, then the total fees will be lower... |
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Thats $50 in "effective" principal. Since we're talking about rolling the loan over and over.
For someone that doesnt have the cash to pay it off, re-writing is what commonly happens.. My sole point was by re-writing for a lessor amount, each time you re-write, you will. Eventually reach zero... |
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That I will agree with, if you put more money.
Above the principal. The quicker the loan will be paid off, and the total fees will be lower.. But, you still have to pay. Above the principal. In order to write a lower amount on the check. Otherwise your simply just rolling over the same amount of money for the next period... |
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In your world how does a person pay down their loan? The loan was for $250, but $300 needs to be paid on payday..
Most states, and most companies, require the loan to be paid off and rewritten.. Stand near the counter at just about any payday loan store and you'll see person after person come in, pass $300 to the teller, sign a couple papers, and get $250 back.. The end result? They've paid $50 to roll over their loan.. But legally, the old loan was paid off and this is a new loan.. If you want to "pay down" the loan, you need to front the $300 to meet your original loan repayment terms, and then instead of borrowing back $250 you borrow $225 or something. And the following payday you need to come in and repay $225+fee and if necessary, rewrite... |
