Payday Loans

United States
March 23, 2007 2:36pm CST
Would you ever take one out? Payday loans are short term loans were you borrow money against your next paycheck. Theoretically, you pay the full amount + interest back out of your next paycheck. If you don't, the very high interest keeps getting added to the principal. If you are living paycheck to paycheck, where do you think the money to pay off the loan in full is going to come from?
1 person likes this
2 responses
@mdarma (868)
• Singapore
24 Mar 07
Where I stay I don't think there is such thing. Maybe, there are and I am not aware. I don't and I will not get involved in this scheme. I gather. there is only one winner in such scheme. The lending party and if my thinking is right, you may have to pay a heavy inteest. What are the penalty if one do not keep to the payment? Must be something very drastic, I gather.
• United States
23 Mar 07
NO, I would never do this! I've heard some have been shut down for ripping people off. It is a great way for people to really bite off more than they can handle (if already in a bind with nothing substantial coming in future) and remain indebted to the PayDay Loan company.