What Payday Lenders Don’t Want You to Know About

by J. Money - Published September 7, 2016

payday loan sign

We’ve all heard to stay away from payday loans, but why is that? Why are they so horrible? Should you ever get one? (Spoiler alert: NO)

This post should help clear things up a bit… Though fair warning, you might want to sit your wallet aside so you don’t throw up on it :)

But first, what are payday loans?

According to the Consumer Financial Protection Bureau:

“A payday loan is a short-term loan, generally for $500 or less, that is typically due on your next payday..”

Nothing too crazy yet – lots of people take out loans – however, it’s the *interest rate* typically charged that turn these lenders right into predators screwing millions of Americans:

“The cost of the loan (finance charge) may range from $10 to $30 for every $100 borrowed. A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400%. By comparison, APRs on credit cards can range from about 12 percent to 30 percent. “

400%!!! It’s pretty hard to make credit cards look good, but damn – congrats guys.

Now to even worse news… :(

Check out these facts from PaydayLendingFacts.org – a project I recently found through Allied Progress which is a nonprofit aimed against powerful special interests ruining our country. And as you may have guessed – they do not like payday lenders.

Facts payday lenders don’t want you to know about:

  • 80% of payday loans are rolled over into new loans within 14 days (!!!)
  • 20% of new payday loans cost the borrowers more than the amount borrowed (!!!!!!!)
  • Half of all borrowers take out at least 10 sequential loans (!!!!!!!!!!!!!!!)
  • An average payday loan claims a third of a borrower’s next pay check
  • 60% of payday loans are renewed seven or more times in a row, typically adding a 15% fee for every renewal
  • 22% of monthly borrowers, “largely people whose income is from Social Security”, remain in debt for an entire year

Other horrible facts:

  • Payday lenders bring in more than $54 BILLION each year lending to 12 MILLION Americans
  • They’re known to harass borrowers at work, take money directly out of their bank accounts and even threaten to have them arrested (they’ve also been sued multiple times)
  • The lenders get around regulations often by declaring themselves “Credit Service Organizations” or issuing “car title” loans instead
  • And, most shockingly, there are nearly as many payday storefronts in America as McDonalds and Starbucks – COMBINED. (I can’t even find enough exclamation points to attach to this one)

It’s all a big mess. Unless, of course, you prioritize profit over people. And places like the CFPB and Allied Progress are trying to combat it to at least halt the growth.

So why do people still take out these loans? Do they not realize how bad they are??

I’m no expert, nor have I ever been in the unfortunate position of needing one of these, but my guess is that people are just doing whatever it takes to get by. Whether through faults of their own or not. If you desperately needed cash and they were the only ones offering you some, would you take it?

Someone once told me there’s no point in talking about this stuff here since the demographic wouldn’t be on a personal finance site, but in the off chance that’s not correct: PLEASE check out some of the alternatives below if you’re here researching them! Maybe you’ll see an option you never knew about?

Either way, this garbage needs all the free publicity it can get. And at the very least, let this serve as a reminder to all of us just how lucky we are!! And how powerful being in control of our money is!

Would love to hear real-life stories of anyone who’s taken a payday loan out before? And how it affected your money/life?

I’m feeling dirty just talking about this stuff, so hopefully y’all have some great turn around stories to brighten up the mood ;) Lay ’em on us!

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PS: I just typed in “payday loans” into Google and saw there are literally 15 of them within miles of my new house… 15!!

PPS: Here’s a list I put together a while back on the best order to take out money in an emergency, if it helps anyone: The Best Order To Take Out Money. I’d swap the order of a cple of them now, but definitely not the last which was not-surprisingly payday loans.

[Photo by Jason Comely]

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Jay loves talking about money, experimenting, blasting hip-hop, and hanging out with his two beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!

{ 77 comments… read them below or add one }

1 The Green Swan September 7, 2016 at 5:29 am

Payday loans are an easy target but often misguided and the CFPB is a ridiculous piece of government regulation to say the least. Planet Money did a great, well educated, fair and thoughtful podcast on payday lending not long ago for those interested in actually understanding how useful they are.

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2 The Green Swan September 7, 2016 at 5:59 am

It was actually a Freakonomics podcast, not planet money.

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3 J. Money September 7, 2016 at 6:52 am

Oh yeah? I’ve never heard anything good about them, so you certainly have my interest piqued :) Care to drop any nuggets that you recall? I’m not sure my stomach could sit through a podcast on payday loans, though I’ll certainly be googling it now.

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4 The Green Swan September 7, 2016 at 1:57 pm

A few tidbits won’t do it justice, I’ll put it on my list to write a post about it soon. Stay tuned.

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5 J. Money September 7, 2016 at 4:30 pm

Even better!

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6 The Green Swan September 15, 2016 at 8:29 am

Alright, the post is written…hope you check it out and keep an open mind…thanks!

http://thegreenswan.org/enmity-justified-payday-lending

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7 J. Money September 15, 2016 at 4:04 pm

Fascinating take, indeed! Still processing it all, but if that “satisfaction” level is accurate then it def. makes me feel less scared for folks. Though I still don’t like the whole idea of it :(

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8 Josh September 7, 2016 at 5:55 am

The Payday Loan business is out of control! John Oliver actually did a really informative and funny bit about this business a little while ago. He gives some information about who the “average” customer is.

https://www.youtube.com/watch?v=PDylgzybWAw

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9 Free to Pursue September 7, 2016 at 6:47 am

I loved that one. Priceless. Most of his monologues are on topics worth learning about. Here’s a great one on fees associated with retirement savings.

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10 J. Money September 7, 2016 at 6:53 am

AWESOME!!! I saw his on the “buying up debt for pennies and then forgiving everyone’s loans” bit (incredible!), but will have to check out the Payday one. Good lookin’ out :)

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11 Brian @ Debt Discipline September 7, 2016 at 6:04 am

I’ve often heard stories of people getting advances on pay checks using payday loans. That’s the thing I knew where bad about them the incredible high interest rates, that basically never allows the person involved to get out of them. A really bad cycle that once you get involved in is tough to break.

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12 Kate @ Cashville Skyline September 7, 2016 at 6:15 am

Payday lenders are all over my neighborhood, too. I’m incredibly lucky to never have needed one of these loans, but I can certainly see why they are so popular. Fortunately, there are other resources like the Nashville Financial Empowerment Center close by. They offer free (!!!) financial coaching to any resident of our county. Helping lower income residents pay off debt is one of their more popular services.

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13 J. Money September 7, 2016 at 6:55 am

So awesome to hear that!!! I wonder if all communities have a place like that??

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14 Christin September 7, 2016 at 6:26 am

The people who need/get payday loans are probably not reading this blog for alternatives. Check out Freakonomics postcast “Are Payday Loans Really As Evil As People Say?” on this topic. I found it to be incredibly interesting.

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15 J. Money September 7, 2016 at 6:56 am

That’s exactly what I pointed out in this article, haha… but can it really hurt to pass on the word?? Maybe someone reading this will know someone and share.

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16 Dividends Down Under September 7, 2016 at 6:34 am

Sadly this is also very common in Australia (and all other Western countries I’m sure). They prey on the weak and the financially unsecure the most. It is a very sad cycle that people don’t understand how bad these are. The modern ones make themselves seem really cool with ads, dressing up as rabbits etc. But they as much loan sharks as they’ve ever been.

Tristan

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17 Ryan October 3, 2016 at 1:45 am

Yep unfortunately they are really common in New Zealand too. They often prey on minorities and people that don’t know how bad they actually are. Would love to see this industry better regulated!

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18 Free to Pursue September 7, 2016 at 6:44 am

I used to wonder why people would take out these loans. It’s all about “scarcity”. Here’s a quote on the topic from the book by the same name:

“p. 128-9 [Juggling] leads to a messy balance sheet. As we reach repeatedly for the most proximate solution to the most immediate problem, over time these short-term fixes create a complex web of commitments. The result is a messy patchwork of assets and obligations. For the busy, this means burdened and contorted schedules…For the poor, it means complicated financial lives. Detailed research in the fascinating book ‘Portfolios of the Poor’ shows that the poor use about ten distinct financial instruments on average. ”

And another interesting aside, as this is all about understanding people who don’t seem to be able to make ends meet:

“p. 107 – A 1997 study estimated that nearly 5% of the annual income of the poor was spent on reconnections and servicing and late fees, a number that we suspect has risen dramatically since then.”

And credit card late fees were certainly not included in that 1997 study. When we include the yearly fee, the interest rate AND charges for late payments, exceeding the card limit, foreign exchange fees, insurance and ATM withdrawal interest, credit card APR spikes considerably. They should be viewed with just as much scrutiny as payday loans, given it takes many over 20 years to pay off a card. No wonder credit card companies prey on those who have already declared bankruptcy!

There are SO many “taxes on the poor” that creep into the lives of those who are struggling financially. It’s no wonder it’s so hard for them to get back on their feet. It’s a slippery slope.

I’d say this article is the best argument for building up an emergency fund. EVER!

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19 J. Money September 7, 2016 at 6:59 am

Ugh, for real… So true about credit cards too – much more harm they do than good overall :( Love how easily you can pull this stuff from all the books you’ve read!! So powerful to be able to do!

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20 Free to Pursue September 7, 2016 at 4:05 pm

When it comes to credit cards and their effect on the average person, the documentary “Maxed Out” is great to watch. Some of what’s discussed in it just made my skin crawl. Despicable!

Book quotes? I have more of those at my finger tips than I do $$$ in the bank! ;)

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21 J. Money September 7, 2016 at 4:28 pm

That doesn’t surprise me :)

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22 jestjack September 7, 2016 at 6:51 am

IMHO…It’s all about survival. Folks do what they have to do. In my “neck of the woods” there is a “twist” with car lots. They are known as “buy here… pay here” lots. These car lots attract folks often with lousy credit and therefore pay crazy prices for used cars as well as an assortment of fees and interest rates that approach 30%. The way it works you stop in on a predetermined day …. usually Friday (payday) and make your payment…WEEKLY. There is a tracking device in the car and if you miss one payment….you are in default. The dealer finds the car, seizes it and takes it back to his lot. The buyer can then pay all the fees and penalties to get the car back….OR…take the bus. Sad….

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23 J. Money September 7, 2016 at 6:59 am

Doesn’t sound surprising :(

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24 Miss Mazuma September 7, 2016 at 8:36 am

WOW – sad but effective!

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25 Roy Largo @ Band of Savers September 7, 2016 at 7:12 am

With interest rates and stats like those it’s easy to see how the trap of payday loans proliferates itself and binds those who use them. I’ve often wondered if people use them simply because its a relatively easy process and thus the least painful option in their eyes, thinking that they will beat the statistics and be clear of it all in a few weeks, or if it is due to a lack of education and financial understanding on the dangers and alternatives?

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26 J. Money September 7, 2016 at 3:26 pm

That could also be true! They’re always touting how easy and quick it is (mostly in their names themselves!) so I’m sure they do whatever it takes to make it as convenient as possible. And does give it some merit if you really are in an emergency situation.

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27 Lindsay @ The Notorious D.E.B.T. September 7, 2016 at 7:14 am

I used to work as a transcriber a few years ago before I was even into money stuff. I still remember one case where a woman was interviewing a poor black woman about the her favorite ads that would get her to take out a payday loan. Between that and an interview with a major national electronics chain employee re: credit cards (he thought he was helping people because an old grandmother came in one day and wanted to reconnect with her family by taking on debt to buy her grandkids video games), that was probably one of the turning points for me that something is wrong with the way people take on debt.

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28 J. Money September 7, 2016 at 3:30 pm

:(

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29 Apathy Ends September 7, 2016 at 7:31 am

Thanks for the info, I assumed they were a scam but didn’t know the full depth of the interest rate or their lending practices. Will check out the podcast a few others have mentioned but I’m sure the overall consensus is stay away regardless

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30 Penny @ She Picks Up Pennies September 7, 2016 at 8:05 am

True story. I had to find another spending tracker app because mine started advertising payday loans. Have you listened to the Planet Money and Freakonomics episodes about payday loans? I’m still not sure what to make of the Freakonomics one. It’s stuck with me for five months or so.

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31 J. Money September 7, 2016 at 3:51 pm

Yeah, some ad networks let you ban certain things to advertise like paydays or gambling/etc which I try to do for my sites, but every now and then one pops out :( I hadn’t heard any positive remarks about payday loans until today w/ the podcast stuff, so def. intrigued by it!

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32 RAnn September 7, 2016 at 8:22 am

What is the profit of the average payday lender? Remember, they are like any other business and have expenses. They have to pay rent, furnish an office and pay someone to sit there all day. If rent and utilities are $600/month and the employee costs $10/hr (close to minimum wage, plus taxes and insurance) and you are open 10 hrs per day, seven days a week, you have to earn $120/day just to pay those expenses.

I invest via Lending Club and there are loans that charge $28%/year and the investor’s final profit is close to 8%, because of defaults. How many payday loans default?

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33 J. Money September 7, 2016 at 3:56 pm

For sure – not hating on making a profit as a business, just the actual *service* they’re in. Plenty of other ways to make a buck in this world.

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34 Kalie @ Pretend to Be Poor September 7, 2016 at 8:23 am

Someone I knew in college worked at one of these places and shared the ins and outs. It’s so bad. I had no idea there are so many of them. That’s the most astonishing part you’ve shared today!

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35 J. Money September 7, 2016 at 3:58 pm

I know :( I bet we’ll start seeing them everywhere we go now that we’re more conscious about it!

If you’re still in connection with your old friend, you should totally get them to write an article about it on your blog! “The Secrets of Payday Lenders By an Anonymous Worker!” :)

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36 Miss Mazuma September 7, 2016 at 8:39 am

400%! That’s insane….yet people do it. I am sure some know the pitfalls and others don’t care. When you are to the point of needing a payday loan I would hope it was for survival, as jestjack said, and not for a new pair of kicks.

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37 Hannah September 7, 2016 at 8:44 am

The freakonomics podcast was really fascinating. It seemed like the people who hated payday lending the most were those who never used them.

The crazy thing about payday loans is that to get one, you need a bank account and a job. You have to be at least a little bit sophisticated.

Getting from one check to the next can be a huge struggle, but if you learn how to do it, you can avoid the usurous rates. I think that in today’s world everyday banks can be just as bad or worse than payday lenders/check cashing outlets, so practical help for low income people is more important than ever.

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38 J. Money September 7, 2016 at 3:59 pm

Interesting about needing a bank account… I’d say job too, but it’s kinda implied in the name of it all haha…

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39 Ms. Montana September 7, 2016 at 8:57 am

Pay day loans are so sad. When we lived in the DC area, they were everywhere. People do get trapped in the cycle. My last employer did cash advances for people’s pay checks. It was sad to see it up close with people I worked with. There was a 10% charge. Some guys would take half their paycheck early EVERY single week. They get stuck in the cycle. The owner told me once that the company made $40,000 the year before from it. There were only 20 employees! And I know I wasn’t taking cash advances. The employees felt like they were being given a favor, but it seemed to me they were opting for a 10% pay cut.

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40 Miss Mazuma September 7, 2016 at 9:59 am

Holy shit!! $40k just from feeding off their own employees. That’s HUGE! We really need to push for financial education in this country. I know there will always be people outside the curve, but if kids could learn this stuff at an early age perhaps we could bridge the gap a bit more.

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41 J. Money September 7, 2016 at 4:05 pm

Just…. wow.

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42 ZJ Thorne September 7, 2016 at 9:10 am

It was common for my family growing up. At one point my mother made under $5000/yr and still had two children at home. She would not apply for welfare. These payday loans were usually to get the power back on. They always caused more problems than they solved.

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43 J. Money September 7, 2016 at 4:08 pm

I’m so sorry to hear :( And you know what, if it meant power on – or anything really for my kids – I’d take one out in a heart beat too. I pray that most people taking them out are as desperate too and not just blowing it all… Though of course I don’t want millions of people that desperate either, so it’s $hitty any way you look at it! AND SO PROUD OF YOU for coming away great and now rocking a blog about $$$! :)

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44 Tia @ financiallyfitandfab September 7, 2016 at 9:15 am

So, I have never taken a Pay Day loan but one of my friends was an avid pay day loan user. I never even knew! She opened up to me about it recently. She told me she got stuck in the cycle of quick money but then being broke as soon as pay day loan came.

There really needs to be more financial literacy education because I feel like pay day loan places prey on people that think it’s just quick money.

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45 J. Money September 7, 2016 at 4:09 pm

Sucky for your friend :( She better now these days?? At the very least because she has YOU as a friend who will help guide her? :)

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46 Linda @ Brooklyn Bread September 7, 2016 at 9:44 am

It’s amazing how as a society we allow the most vulnerable people to be taken such advantage of. There should be far more regulation by the government by any business who seeks to make a profit off of people in severe financial turmoil, if even allowed. John Oliver recently did a great report on subprime auto lending – equally terrible gross businesses preying on desperate people. It’s deeply depressing.

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47 still pedaling September 7, 2016 at 10:09 am

Couldn’t help but see some irony in the fact that the ad at the top of this blog page was for refinancing with Quicken Loans!

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48 J. Money September 7, 2016 at 4:10 pm

Oh jeez, haha… at least it was a mortgage one I’m hoping?? :)

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49 Moving On September 7, 2016 at 10:40 am

Couldn’t let this one fly by! Lol! About 3-4 years ago I got caught up in this cycle after some financial hardship. It was brutal. To be honest, probably 10k brutal once all was said and done. Once I climbed out of that whole I vowed to never do that again, under no circumstances!! And I haven’t. I now have a small business in addition to my employer and work with my partner on her business. We made some great changes, especially with our mindset. Thank you for sharing this information with others.

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50 J. Money September 7, 2016 at 4:11 pm

Look at that turn around!!! That’s what I want to hear! Good for you! :)

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51 Beth September 9, 2016 at 2:30 pm

I just want to say good for you for getting out of it and never going back!

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52 Alyssa September 7, 2016 at 10:45 am

I have heard some seriously horrifying stories of people who have gone through the payday loan process. Including: the most aggressive collection calls in the world, taking their “clients” paychecks in full on paydays, and as you mentioned, the interest rates.

I have only spoken with people who have come out of these payday loan battles with horrible memories, and financial scars. I truly wish the rulings were more tough. Thankfully my province is working on it, but it’s tough to fight against those type of industries.

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53 J. Money September 7, 2016 at 4:15 pm

I wonder how much better (or worse?) it is internationally like where you are and other places? Someone above in Australia said it was pretty prevalent and I guess it shouldn’t ve too shocking since people are always looking to make a buck off someone – even when they’re down :(

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54 Alyssa September 8, 2016 at 4:06 pm

I’m not entirely sure! They’re very prevalent in Canada though. They haven’t really had any government regulation until recently, which is probably why! So sad :(

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55 Mollie September 7, 2016 at 11:01 am

I work in social services, and I like talking finances with clients. I’m a big proponent of emergency savings, no matter how small. I was not aware of the alternatives to payday loans, so I will add this to my schpiel if someone is in dire straits. Thanks for this info J$!

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56 J. Money September 7, 2016 at 4:16 pm

Yayyyyyy – wonderful!! Especially in response to all those who say it’s no point talking about such matters here on the blog since most payday recipients aren’t online searching for it! You just never know who it’ll affect and I’m so glad you happened to pop on today :) Thanks Mollie! And for the tiring job in social services too I imagine?

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57 Christine Luken September 7, 2016 at 11:14 am

As a financial coach, I totally agree with you: avoid payday loans like the plague! When I crashed and burned financially over 15 years ago, I owed three different payday lenders money. It’s such a hard cycle to break and the cost is just ridiculous. :(

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58 J. Money September 7, 2016 at 4:17 pm

I bet :( Love the comeback story though! From paydays to finance coach! I bet it helps you relate a lot more to your clients in deep doo doo :)

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59 Millennial Moola September 7, 2016 at 11:34 am

We watched the movie “Dope” last night about an inner city kid who is forced into selling drugs after a gang leader orders him to or else, and the kid decides to use bitcoin to make the money untraceable. Then, he has to give up the money to the leader of the whole region, who happens to be a payday lender and uses the business as a front for all the illegal money laundering he’s doing. I wonder how many payday lenders are involved with the drug trade in america. Might be pretty shocking

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60 J. Money September 7, 2016 at 4:19 pm

Oh $hit! Wouldn’t put it past them! Where did you find that movie – Netflix? Sounds super interesting…. if not only because I use the word “Dope” in every other sentence :)

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61 Fiscally Free September 7, 2016 at 12:02 pm

It’s amazing how many of these places are out there. I feel bad for the people who have to resort to these sorts of things in order to get by. They have got to be pretty desperate.

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62 Anon September 7, 2016 at 12:05 pm

And yet the big banks loan money to finance the operations of most payday lenders:

http://npa-us.org/research/payday-lending

http://obsbankwatch.blogspot.com/2013/12/wells-bofa-are-tops-in-financing-payday.html

Payday lending, in all of its glory, is just another symptom in the virtuous cycle of a debt-based economy :-).

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63 J. Money September 7, 2016 at 4:21 pm

Ugh….. I’m sure they pay ON TIME too knowing full well what happens when you don’t! They’re prob their best clients :(

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64 Financial Canadian September 7, 2016 at 12:29 pm

For people trying to forge a path to financial independence, payday loans are naturally disgusting. I wish there were more alternatives!

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65 Julie R September 7, 2016 at 3:20 pm

I took out a car title loan back in June. I hated, hated, HATED to do it, but at that time, it was car title loan or be out on the street with our two kids. I got the loan, used it to help us, and IMMEDIATELY paid it back in full. The interest IS insane, I borrowed $700 and ended up paying $1000 only 29 days later to get it resolved.

I say all that to say that yes, it’s desperation that leads to this. I had no one to borrow from and I would have rather lost my car than my apartment. And luckily, a major life change happened shortly after and I’ll never be in that position again, but I will always remember crying in their office b/c I knew how dangerous the loan was, and I’ll always have compassion for people who feel they have no other options.

Also, I’ve been reading this site for YEARS, 99% of that time while living paycheck to paycheck and barely scraping by, so even though some people might think it’s a waste to post an article like this, IT’S NOT!!!

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66 J. Money September 7, 2016 at 4:23 pm

Thank you Julie!!! For not only reading the blog for so long, but for opening up for everyone to see here! Not an easy thing to do! (And so SO glad things have changed for the better for you guys. I would do whatever it takes to protect my kids too – even if it was a 1,000% interest loan :()

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67 Pengepugeren September 8, 2016 at 7:35 am

Don’t such short terms loans demand high interest rates just to cover expenses?
If you lend out $100 at 20% annual interest rate for two weeks that’s $0.83 in interests. That likely wouldn’t remotely cover administration costs. After all, they need people to evaluate the applicant, do all the internal paperwork, accounting, taxes etc.

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68 J. Money September 10, 2016 at 3:43 pm

For sure – business wise it may make total sense, but that still doesn’t mean it’s *good* for people. I could probably make bank slinging crack but it’s still polluting the world :)

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69 Prudence Debtfree September 8, 2016 at 11:17 pm

I love this kind of post – I think because it addresses issues not generally experienced by the demographic that reads pf blogs. How do we change that? By doing what you’re doing. Too many people dismiss those who make money mistakes as “irresponsible” or “stupid” – simplistic and elitist. And people who make money mistakes feel alienated from the very pf forums that could help them. Frustrating! You’re building bridges here. I hope you get some good stories from readers who have been there. (Like Moving On above?)

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70 J. Money September 10, 2016 at 3:33 pm

Thanks Prudence! That’s the goal, anyways :)

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71 jestjack September 9, 2016 at 7:58 am

I have watched the documentary “Maxed Out” and the most disturbing thing IMHO is the testimony of Louis Freeh the then head of MBNA….which is now Bank of America. Mr. Freeh later went on to head the FBI…..How does this happen?

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72 Beth September 9, 2016 at 2:42 pm

Okay – This really addresses a question that I ask myself everyday (and never come up with an answer). HOW DO WE HELP EDUCATE PEOPLE WHO ARE NOT INTO PERSONAL FINANCE AND ARE FINANCIALLY CLUELESS?? I never think it’s pointless to talk about these topics because it could help someone and that is all that matters. But for real – the demographic that needs this info aren’t reading these blogs. How do we reach them?

Back to the topic – Payday Loans are the devil and I have no idea how it is even allowed. I have been in that mindset where I needed money and was desperate enough to succumb to a payday loan but for whatever reason I never did. Thank goodness!

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73 J. Money September 10, 2016 at 3:40 pm

A question that no one seems to be able to figure out :(

Personally it feels like one of those things that nothing is going to help until you TRULY deep down want to change yourself. Very similar to losing weight, cutting out cigs/alcohol you name it. Most people know *how* to fix stuff, but getting the motivation to do it is something completely different. Hell – I didn’t care about money much myself until I was in my mid 20’s! Then once I did I seeked the info out and now here we are today.

so the real question, at least for me, is – How do we get people TO CARE enough? Because if you don’t care or at least want to put in the effort it’s not going to matter what type of resources or education someone can drop on you. You won’t do squat until it matters to you.

(all this relating to the middle class btw – not the underprivileged who operate in a totally different world I’m not qualified enough to speak to)

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74 Chris @ Dadding Value September 12, 2016 at 8:44 am

“Someone once told me there’s no point in talking about this stuff here since the demographic wouldn’t be on a personal finance site,”

Thanks for posting anyway, because word will reach them and warn them in other ways. True, someone in that situation might not be on a site like yours right now, but I might be able to prevent someone from going that route after reading this post, and someone else might be able to prevent another person from going that route after reading this post…

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75 J. Money September 13, 2016 at 3:24 pm

Thanks Chris :)

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76 Calvin September 12, 2016 at 3:50 pm

I’ll never forget one day my cousin asked me to borrow $300 and he would pay me back in an hour. Essentially he was borrowing money from me to pay off a payday loan at one place so he could take out a bigger payday loan at another location. He even aske me for a ride to the two different payday loan stores. I took him, got my money back in an hour or so and proceeded to tell him I would never loan him money again.

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77 J. Money September 13, 2016 at 3:24 pm

Woah! I hope he’s quit that since!

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