Money talks: predatory lending is very dangerous
However, getting one of these easy-to-get no credit check loans could make you a customer for longer than you think. TEMPLE, Texas — We’ve all been there at some point in our lives. You are having financial difficulties for a number of reasons and you just need some quick cash.
“If you ask me, my kind of personal opinion is that they are placed in certain areas, for people who may need income more frequently or who may need money quickly and easily,” Rolandus Johnson said. (Rojo), a financial planner, told 6 News: ‘And so what you end up getting is people coming in and needing that extra income and then they’re in trouble because now they’re getting it. have, and they did everything they had to do and now they can’t pay it back.
With interest rates ranging from 200% to 300%, up to 400%, and special interest rates offered, these quick cash loans can be easy to get, but very hard to repay.
It is designed to keep you as a customer in perpetuity.
“Rojo” went on to say, “It almost kills your financial future. Because the interest rate is so high. And then the extra money you would have had goes to that, so you can’t invest and there there’s a lot of things you can’t do. So I would say, and that’s for sure, here, stay away if you can. I know things happen, but stay away from this guy of loans.
Unfortunately, some Americans cannot stay away. Even with that advice, according to pewtrusts.org, twelve million Americans take out payday loans every year, spending $9 billion in loan fees.
Many of these types of lenders are predatory, as Rolondus explained to us: “Without education on how loans work. The way credit works and these different things. And may have made some mistakes in the past. And so they’ll go in there and they’ll get the money that they don’t need to know or even read the fine print that says you know if you take out $500 you’re going to pay me back $2,500.”
In 2017, there were 14,348 payday loan storefronts in the United States, while there were only 14,000 McDonald’s locations. The typical payday borrower is in debt five months out of the year. And the average income of payday loan borrowers is $30,000 a year.
And here’s a little perspective for you.
- Money talks: predatory lending is very dangerous
- View all news and articles from business news updates.