• Jeff Michael: Repair Your Credit and Knock Out Your Debt

    Jeff Michael: Repair Your Credit and Knock Out Your Debt
    I highly recommend this book because I wrote it.

  • Edie Milligan: Tips from the Top: Targeted Advice from America's Top Money Minds

    Edie Milligan: Tips from the Top: Targeted Advice from America's Top Money Minds
    I have about a dozen entries in this book.

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Thank you for calling it like it is. Shutting down lenders is denying credit to the poor. It's as simple as that. I don't see how that will help the economy especially since the financial crunch we are all facing will be placing more and more people in that "poor" category.

im glad that payday loans helped you out! i hate when people say we should get rid of them, because while some do use them unwisely, its so nice to have them available for the people that do need them.

It is easy to condemn payday loans on the basis of the horrific interest rates, and the fact that if you spend money before you get it, that's a situation that is only likely to get worse. That in itself doesn't mean there isn't a place for payday loans - they are usually taken up by people with few alternatives. Getting an advance and paying it back quickly can certainly be preferable to some of the possible consequences of not doing this.

If something needs to be shut down then efforts should be made to put suitable replacement solutions in place. I've been to payday stores and interviewed both management and customers and one thing is clear, if the industry was regulated, there is still a need for their services. If the stores are all closed then people that needed legitimate short term loans for repairs, utilities, to bridge a gap, etc. will be harmed.

When payday stores don't exist, more bank fees will be encountered for bounced checks by people that use those stores. I had one client that incurred $400 in NSF fees from Bank of America just this month because from a gap that could have been bridged with a short-term payday loan.

Other people take cash advances from cards to cover the urgent need and they get really slammed by the card company until the entire balance is repaid.

In my research people have said that local credit unions will offer short-term loans in place of credit unions but I found that they are only to people that qualify for membership, must be current member, and must have direct deposit. Life just does plan that far in advance.

It is a shame that more consumer advocates can't work to improve a broken system instead of shutting it down.

That's why liberals drive me right straight up a wall: everything they do to help poor people ultimately makes them worse off. I don't doubt that everyone who is in favor of getting rid of payday loan shops is doing for the good of those who have to pay the exorbitant interest rates, but since these people don't have decent FICO scores, they can't get regular bank accounts so they have no access to the pretty little interest rates the rest of us take for granted. I wonder what they think these poor people are supposed to do for banking services now.

Great article. Thanks so much about the info. Very useful since I'm currently studying about payday loans, debt consolidation, debt settlement, and others related to debt problems

It's good to see there are two sides to every issue.

While I cannot condone the exorbitant interest rates payday loan companies charge, your description of your needs during college helps ballance the story.

Of course, there wouldn't be payday loan companies if the need didn't exist.

Thanks for your story.

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