Talking about money: predatory lending is very dangerous
However, getting one of these easy-to-obtain loans without a credit check can keep you a customer longer than you think. TEMPLE, TX – We’ve all been there at one point in our lives. You run into financial trouble for many reasons and all you need is quick cash.
“If you ask me, my personal opinion is that they are placed in specific areas for people who may need income more often or may need money quickly that is easy to obtain,” said Rolandus Johnson (Rojo). a financial planner told 6 News: “You end up getting people who get in and need an extra income and then get into trouble because now they have it and have done all they had to do and now they can’t pay it back.”
With interest rates ranging from 200% to 300% up to 400% and a special interest rate offered, these quick cash loans can be easy to obtain but really hard to pay off.
This is by design to keep you as a customer forever.
“Rojo” continued, “It almost kills your financial future. Because the interest rate is so high. And then the extra money you would have goes into it, so you can’t invest, and there are many things you can’t do. So I would say, and that is definitely, right here, stay away if you can. I know something is going on, but stay away from this type of loan. “
Unfortunately, some Americans cannot stay away. Even with this advice, twelve million Americans take payday loans every year, spending $ 9 billion on loan fees, according to pewtrusts.org.
Many of these lenders are predatory, as Rolondus explained to us: “They are uneducated about how loans work. The way credit works and all these different things. And he may have made some mistakes in the past. So they’ll go over there and get money they don’t need to know about, or even read the fine print that you know if you buy $ 500, you will refund me $ 2,500.
In 2017, there were 14,348 loan sites in the United States, and at the same time, there were only 14,000 McDonald’s locations. A typical borrower is in debt for five months of the year. And the average income of payday borrowers is $ 30,000 per year.
Here’s a little perspective for you.
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