This option will reset the home page of Loan Advices: You Ask – We answer | All About Loan Issues restoring closed widgets and categories.

Reset Loan Advices: You Ask – We answer | All About Loan Issues homepage

How do payday loan places prey on the poor?

JediMaster asked:

How do payday loan places prey on the poor? How do they keep people trapped in an endless cycle? What makes people use pay day loan places to begin with?
Asked on: 2009-03-07 21:51:06

3 Comments

  1. FRANK B says:

    PEOPLE WHO ARE BAD AT MANAGING THERE MONEY ARE EASY PREY TO THE COMPANY’S WHO PREY ON THE WEAK AND VULNERABLE

  2. People who use pay day loans probably can’t get credit anywhere else due to damaged credit and had something come up that needed to be paid right away that had they an emergency fund would have covered (flat tire, unexpected bill, illness). People who are using these types of places are probably already living paycheck to paycheck already so that they’ll never be able to get out of the cycle of the pay day loan. States that allow people to have more than one pay day loan out at once really open them self to trouble, because then they’ll start using one to pay the other and not really pay off either. Not to mention the fees are steep, but if you can’t get help anywhere else…they are a better choice than what the bank charges you for over the limit and overdraft fees. I think they have a legitimate place in our society, although not pretty. It’s a nature of the financial envirnoment right now. It’s really hard to get up out of it.

  3. broke desperate people use them who don’t know any better.

    they prey on the poor because they charge 400% interest.

Leave a Reply

You must be logged in to post a comment.