NightCrawler
08-10-2006, 06:20 AM
Ya know about these? They are small stores that make small, short-term loans at a seemingly high interest rate. I know a large number of people that call this 'legalized loan-sharking'.

The general idea is that the store holds a check that you write them until your payday, and give you the amount of the check less their fee in advance. They will either deposit or have you come in and pay it off on your payday.

Scenario:
You have late bills that you need to pay off. Your payday is the friday of next week, today is thursday. You need a loan of 300 bucks a week and one day before you get paid. You go to the store, you give them a check for $342 and they give you $300 in cash. You pay off the bills and then come back to the store the week and one day later and pay $342 in cash, they give you back your check. Loan closed.

Banks will not make loans this small or short term. And banks use credit reports.

There are 5 or 6 payday advance places in my city -- Mount Pleasant, MI.

dawn of light
08-10-2006, 06:30 AM
There are payday loan places in Winnipeg. Lot's of Money Marts and stuff too. (Money Marts will cash a cheque for you without putting a hold on it like some banks do). I hate these places. They just perpetuate bad money management. There are lot's of places that will charge an insane amount of interest on the loan and sometimes people have to take out another loan to pay it back, they just keep taking out loan after loan and getting deeper in debt.

I will admit, I once cashed a cheque at a Money Mart because my bank was going to put a 7 day hold on it and I needed it right away. It felt horrible to do though, I don't know why because it's completely legal and everything. I just felt horrible because I knew that I hadn't managed my money properly and I wouldn't have had to do that if I used some foresight. I promised myself that I'd never do that again!

NightCrawler
08-10-2006, 09:16 AM
At Cash Plus, they cash checks as well. At the one in Mount Pleasant, they also have Western Union for money orders and wire transfers, and also have CheckFreePay for bill-payment system ... like for phone bills or electric bills. They also sell stamps.

disciple
08-10-2006, 10:03 AM
I do believe we live off of loans, basically. That's as much as I know, seeing how I know next to nothing about the financial world.

dawn of light
08-10-2006, 10:11 AM
A lot of people live off loans, but that's also why money is the number one reason for divorce. Living off loans creates added stress and just makes people go further and further into debt. I'm a firm believer in staying out of debt as much as possible even if it means a lower cost of living.

disciple
08-10-2006, 11:11 AM
My Dad often says it's his fault we're in debt, 'cause he married such a *wonderful* woman. The divorce was welcome. :P But that's something not to be discussed here.

lamb_servant72
08-10-2006, 12:01 PM
I hate these places. They just perpetuate bad money management.

Exactly. If someone needs the money right away, they are probably going to need their entire paycheck, and paying off those hefty fees hurt worse than waiting a few more days for that paycheck!

NightCrawler
08-10-2006, 04:16 PM
And now the spin!

I work at Cash Plus.

terrasin
08-10-2006, 06:25 PM
My question is which is the lesser evil? Taking a small loan from a money mart and paying them in full the following week, or paying with a credit card and paying it off for the next 3 years with rising interest? ;P

CJ

dawn of light
08-11-2006, 05:32 AM
And now the spin!

I work at Cash Plus.

What do you think of these places? I have a friend who used to work at a call centre that gave payday loans.

My question is which is the lesser evil?...

Meh, credit cards are no better. Staying out of debt as much as possible as far as I'm concerned, is the smartest thing to do. In emergencies though, I personally, would use a credit card and pay it off as soon as possible, because it's better to not be able to pay a credit card than a payday loan place. I'm not proud of it, but I've had credit card debt for the past year because when I moved into my apartment I bought a futon and frame to use as a bed and I've never had it completely paid off yet. It seems that every time I'd make a payment, I'd just use it again. I'm really glad that the credit limit is only $500 though. I will have it paid off my the end of the summer. (I'm going to start leaving my debit and credit cards at home when I go out to prevent impulse money spending.)

NightCrawler
08-11-2006, 02:28 PM
What do you think of these places? I have a friend who used to work at a call centre that gave payday loans.

I have raised quite a bit of hell around here. My dad started the business and I wanted to make sure the store got off on the right foot (he put all of his retirement money into this place). However, I see that a) over 1/3 of our customers are getting per capita from the casino [Mount Pleasant is pretty much on a huge Native American reservation] and 2) These customers rarely get out of our store without renewing the loan either same day or same week.

This is saddening. And even worse when my coworkers at Wendy's (who aren't Christians, but rather like to bash religion in general) will ask me loaded questions like "So, how can you and your dad work at such a scandelous business, when you are Christians?"

NightCrawler
08-11-2006, 02:29 PM
By the way, the native americans would get (typically) 1,000 bucks per adult every single week. They don't just go to one payday advancer, apparently most of them have been going to at least 3 in town at the same time.

amodman
08-11-2006, 03:53 PM
I don't like those types of businesses, though I do accept that it can, at times, be a necessary evil in our financial world. Problem is, once you get on that track, it fosters bad habits, more of the businesses pop up because more and more people still want/need more of the service, etc. Blech. I'm almost not proud to admit that I recently got into some credit card debt on top of the student loans I'll have to pay off for my current college education on a $950 laptop. But I intend, through a little birthday money and a lot of work, to have that debt at least be paid off in 6 months or les (the "no interest" period). Gah, I hate it, but I was impatient. It happens. These places are more for bills that need paying asap, though, and I know their usage from situations in which my mom has had to have a bill or somesuch be paid off right away but couldn't afford to wait for her paycheck, etc.

DustinRocks
09-01-2006, 10:40 AM
I have raised quite a bit of hell around here. My dad started the business and I wanted to make sure the store got off on the right foot (he put all of his retirement money into this place). However, I see that a) over 1/3 of our customers are getting per capita from the casino [Mount Pleasant is pretty much on a huge Native American reservation] and 2) These customers rarely get out of our store without renewing the loan either same day or same week.

This is saddening. And even worse when my coworkers at Wendy's (who aren't Christians, but rather like to bash religion in general) will ask me loaded questions like "So, how can you and your dad work at such a scandelous business, when you are Christians?"

You do what you gotta do. It's there choice to manage money in the way they do. Don't let anyone turn your customers into victims. It's sad but maybe if you weren't there some kid might not havedinner cuz daddy blew it at a casino.