| View previous topic :: View next topic |
| Author |
Message |
Porterwake
Wakeboarder.Commie
Joined: 28 Feb 2003
Posts: 2078
City: Wisconsin
|
 Posted: Oct 15, 2007 6:45 pm Post subject: Cash Advance/Pay Day |
 |
|
Has anyone ever been tricked to use these services? Some states have permanently shut these businesses down. It is almost legalized loan sharking.
A family member against all advice is in serious debt because he needed the cash, now it is somewhere along the lines of 300% annual interest. Also again against advice, he has contacted a debt consolidator. Simply prolonging the life of his debt, rather than shrinking it, like the commercials make it out to be.
How can we educate against this? How can anyone dig out of such a hole without the big black mark? America has a real problem with debt, and the easy solutions are driving many people even further. Why aren't we seeing more action against these firms like we see people pressing the government for McDonalds to offer healthy menu items?
It's all very sad really. |
|
| Back to top |
|
 |
|
|
Rhawn
Wakeboarder.com Freak
Joined: 14 Jun 2006
Posts: 3127
City: Richmond, V to the Izzay
|
| Posted: Oct 25, 2007 7:45 am Post subject: |
|
|
I dug myself in a very similar hole and ended up filing bankruptcy. Its not the best move, but sometimes its the lesser of two evils. I tried consolidation and got screwed, just like everyone else. The bankruptcy is still on my credit, but I've built my score back up strong with small credit accounts here and there. My score is actually pretty decent even with the big B on my record.
_________________
WakeSurf and Wakesurfing News |
|
| Back to top |
|
|
J-Ro
PityDaFool Who Posts This Much
Joined: 13 Jan 2003
Posts: 5662
City: Rocklin
|
| Posted: Oct 25, 2007 7:50 am Post subject: |
|
|
Honestly your best bet is to talk to a financially savy relative or close friend. We have helped 2 couples get out of debt just by going over all their bills and debt and figuring out a long term plan of action. It can be embarrassing but so is the alternative.
_________________
Steal My Book
Read My Blog
RIP Leggester |
|
| Back to top |
|
|
howabouttheiris
Addict
Joined: 16 Jun 2005
Posts: 677
City: Austin, TX
|
| Posted: Oct 25, 2007 7:52 am Post subject: |
|
|
Sorry... did I just hear "I made a stupid mistake, and it is GWs fault"
The problem is not with payday loans. They represent stupid interest rates, but they are very useful to get you out of a 2-3 day bind. The problem may be that you cannot manage your money.
ps... Don't go to McDonalds... their coffee is hot and you just may feel like pouring it on your crotch. |
|
| Back to top |
|
|
J-Ro
PityDaFool Who Posts This Much
Joined: 13 Jan 2003
Posts: 5662
City: Rocklin
|
| Posted: Oct 25, 2007 7:55 am Post subject: |
|
|
| Quote: |
America has a real problem with debt, and the easy solutions are driving many people even further.
|
There is no easy way out only an easy way in.
_________________
Steal My Book
Read My Blog
RIP Leggester |
|
| Back to top |
|
|
pet575
Wakeboarder.com Freak
Joined: 20 Jun 2006
Posts: 3630
City: Kansas City, MO
|
| Posted: Oct 25, 2007 9:22 am Post subject: |
|
|
howaboutheiris is dead-on. Americans' consumer culture has evolved into one of wanting and a feeling entitlement over having the means to actually acquire it. Our parents (and their parents) scrimped and saved for things they wanted, and didn't buy them if they couldn't. They didn't buy everything on credit and worry about how to pay for it later. When I was in grade/high school, many of our economics and history teachers told us "Your generation will be the first to be worse off financially than the one before it." I believe that this is one major reason why that is happening.
We were unintentionally spoiled by our parents, and conditioned to think we are entitled to things they were able to give us because of their responsible and careful spending.
_________________
| Wakebrad wrote: | | I honestly think it has to do with internet penetration... |
|
|
| Back to top |
|
|
J-Ro
PityDaFool Who Posts This Much
Joined: 13 Jan 2003
Posts: 5662
City: Rocklin
|
| Posted: Oct 25, 2007 9:43 am Post subject: |
|
|
pet575, That goes right along with the mortgage and housing issues we are facing right now.
| Quote: |
I am sure most of you have seen the recent market debacles that have permeated through Wall Street and were preceded by an invisible Main Street melee that no one has been willing to talk about because it hurts to admit our shortcomings. For those not familiar with the events of the past weeks I will give you a quick synopsis. Basically all of the financial misgivings of Americans have come to a head through a small fissure in the financial system. For the last decade we have lived the American dream of free money. Nearly 65% of Americans own their own home (Of course this concept is a misnomer as very few families actually own their home or ever will). In comparison, our parents worked and saved to own a modest home and actually accomplished that goal. This was the backbone of America. The concept of owning something that took sacrifice to get.
Fast forward to the last decade and America is quite different. Now we own nothing. We simply lease or buy on credit. Then we continue to borrow money using the same asset that we don’t own, but is worth more than when we began our payment process. We use that borrowed money to buy more things that we cannot afford and essentially don’t need. We are a nation of debtors. Normally this would be a good thing for the economy. For credit and financial markets to work there need to be creditors and debtors. The concept has a foundation of one person borrowing from another with collateral being the basis for the security of the loan for both sides. The problem manifests itself when the debtor’s collateral is worthless. This can be seen in the use of credit cards and can be expounded to other areas as well.
People buy all kinds of worthless junk on credit. Obviously a home is not worthless but it is only as valuable as what someone else will pay for it. If you buy something with a non-collateralized loan, your desire to repay it is directly attributable to your value of the item purchased. Which is why so many people don’t pay their credit cards off, no one is going to come and get the stuff they bought because it is essentially worthless in comparison to the debt.
This brings us to the present. Markets worldwide have gone through a liquidity crunch in the last few weeks. This was brought about by two colliding forces. The desire for Americans to have everything they feel they are entitled to and the desire of business to make money in an environment of fewer customers. Just about every American believes they have the right to own a home. Even if they have zero credit or even worse, bad credit, they believe they will always make their mortgage payment. With the increasing level of home ownership in the last 7 years, everyone felt they should own a home. This sense of entitlement ushered out sanity and sound decision making. It lead people who should not be homeowners to demand it as an American right.
|
_________________
Steal My Book
Read My Blog
RIP Leggester |
|
| Back to top |
|
|
jjaszkow
Wakeboarder.Commie
Joined: 25 Jul 2006
Posts: 2124
City: Some Airport
|
| Posted: Oct 28, 2007 8:25 pm Post subject: |
|
|
I am no expert, but two things caught my interest in the article that J-Ro quoted.
| Quote: |
The concept of owning something that took sacrifice to get.
|
Unfortunately, that flys in the face of the instant gratification society that we live in today  It concerns me that people always want everything now, and unfortunately, they don't understand the concept of saving for what they want.
| Quote: |
For credit and financial markets to work there need to be creditors and debtors.
|
A surprising number of these creditors are outside of the USA. Due to the easy credit and the need for instant gratification, we are unwittingly selling our country off to the highest bidder. This is a really scary situation to be in, and I am certain it will only get worse. |
|
| Back to top |
|
|
shane515051
Criminal
Joined: 21 Apr 2003
Posts: 69
City: Safford
|
| Posted: Jan 22, 2008 7:46 pm Post subject: |
|
|
| donate or tithe 10% and save 15% no matter what! That is the best way out of debt. |
|
| Back to top |
|
|
chavez
Ladies Man
Joined: 22 Sep 2003
Posts: 27375
City: Roseville
|
| Posted: Jan 22, 2008 7:53 pm Post subject: |
|
|
| shane515051 wrote: | | donate or tithe 10% and save 15% no matter what! That is the best way out of debt. |
How does donating money or saving money help one out of debt?
The best way out of debt is to stop spending on unnecessary items and direct those $$ to paying off the debt.
Tithe? Please. If you mean what I think you mean by that, well 
_________________
| Quote: | | That's Mr. Gingermex to you a$$hole. |
RIP MHL 04/25/1958 - 01/11/2006 |
|
| Back to top |
|
|
ontrider
Ladies Man
Joined: 30 Jul 2003
Posts: 16491
City: Russia
|
| Posted: Jan 22, 2008 9:52 pm Post subject: |
|
|
The best way to stay out of debt is not buying things that you don't have the money to pay for in the first place. 
GAME. SET. MATCH = me. |
|
| Back to top |
|
|
chavez
Ladies Man
Joined: 22 Sep 2003
Posts: 27375
City: Roseville
|
| Posted: Jan 23, 2008 10:34 am Post subject: |
|
|
ontrider, that's how to stay out of (not get in to) debt. Not how to get out of debt. 
_________________
| Quote: | | That's Mr. Gingermex to you a$$hole. |
RIP MHL 04/25/1958 - 01/11/2006 |
|
| Back to top |
|
|
ontrider
Ladies Man
Joined: 30 Jul 2003
Posts: 16491
City: Russia
|
| Posted: Jan 23, 2008 10:41 am Post subject: |
|
|
chavez, that's what I said. 
Getting out of debt is simply a matter of not buying crap you don't need. But like someone said, people feel entitled to a standard of living and can't help themselves until one of those payday loans kicks them in the ass. |
|
| Back to top |
|
|
Wakebrad
Ladies Man
Joined: 11 Dec 2003
Posts: 12257
City: Dallas
|
| Posted: Jan 23, 2008 10:54 am Post subject: |
|
|
| Quote: | | Getting out of debt is simply a matter of not buying crap you don't need. |
Not always. You can get in over your head and have a higher interest payment than what you are making. Then you have to take more drastic measures.
I don't really have any experience with debt. With the exception of our 30 yr fixed mortgage we have 0 debt. I'm not in any rush to pay it off at a tax deductible 5.125% either.
_________________
You have just entered the twilight zone. |
|
| Back to top |
|
|
ontrider
Ladies Man
Joined: 30 Jul 2003
Posts: 16491
City: Russia
|
| Posted: Jan 23, 2008 11:00 am Post subject: |
|
|
| Wakebrad wrote: | | Quote: | | Getting out of debt is simply a matter of not buying crap you don't need. |
Not always. You can get in over your head and have a higher interest payment than what you are making. Then you have to take more drastic measures.
I don't really have any experience with debt. With the exception of our 30 yr fixed mortgage we have 0 debt. I'm not in any rush to pay it off at a tax deductible 5.125% either. |
That's true... but I mean in most normal cases it can be accomplished by living within your means. I used to work with a friend in collections and would see the garnished wage cheques roll in for $12.00 and the interest was $30. Crazy... |
|
| Back to top |
|
|
chavez
Ladies Man
Joined: 22 Sep 2003
Posts: 27375
City: Roseville
|
| Posted: Jan 23, 2008 12:45 pm Post subject: |
|
|
ontrider, dingus (shane515051) said the best way out of debt is blah blah give to the church?!?!?! blah blah blah.
Anyhow, I was responding to that. You can't get out of debt by donating money!
_________________
| Quote: | | That's Mr. Gingermex to you a$$hole. |
RIP MHL 04/25/1958 - 01/11/2006 |
|
| Back to top |
|
|
shane515051
Criminal
Joined: 21 Apr 2003
Posts: 69
City: Safford
|
| Posted: Jan 24, 2008 12:36 pm Post subject: CHAVEZ (TOOL BAG) |
|
|
| I was not implying give ot the church. You can give to a charity or a single person. The whole principle is that you learn to live off of 75% of what you make. By giving on a regular basis, it will always find it's way back to you ten fold. As far as saving. If you stop spending on junk and save, you will have the money to pay down debt, you will have money so when things go wrong you have money to take care of it etc. We were thousands and thousands in debt and this is how we were successful in getting out and staying out. (GIVE TO THE CHURCH BLAH BLAH BLAH) that's not very mature nor respectful. get a clue and pick up a book. Every financial book out there says to tithe or DOANTE 10%. |
|
| Back to top |
|
|
Wakebrad
Ladies Man
Joined: 11 Dec 2003
Posts: 12257
City: Dallas
|
| Posted: Jan 24, 2008 12:50 pm Post subject: |
|
|
| Quote: | | By giving on a regular basis, it will always find it's way back to you ten fold. |
Sounds like church propaganda to me - straight out of a parable. I've never heard the word "tithe" outside of the church setting.
| Quote: | | Every financial book out there says to tithe or DOANTE 10%. |
I doubt this.
_________________
You have just entered the twilight zone. |
|
| Back to top |
|
|
shane515051
Criminal
Joined: 21 Apr 2003
Posts: 69
City: Safford
|
| Posted: Jan 24, 2008 1:00 pm Post subject: |
|
|
take the church out of it. remove the word tithe and use donate only. Robert Kiyosaki
Donald Trump
Ron Legrand
Dolf Deroos all teach the principal of giving ten percent away all of them. Tithe would be the term used if you chose to give it to a church. Get over yourselves |
|
| Back to top |
|
|
Wakebrad
Ladies Man
Joined: 11 Dec 2003
Posts: 12257
City: Dallas
|
| Posted: Jan 24, 2008 1:10 pm Post subject: |
|
|
I agree with you that we should all get used to living on 75% (or less). There is also something to thinking about others in the giving to charity. But the idea that you will get more back by giving sounds too magical. I guess if you believe in Karma that makes sense.
_________________
You have just entered the twilight zone. |
|
| Back to top |
|
|
chavez
Ladies Man
Joined: 22 Sep 2003
Posts: 27375
City: Roseville
|
| Posted: Jan 24, 2008 3:51 pm Post subject: |
|
|
| Quote: | | donate or tithe 10% and save 15% no matter what! That is the best way out of debt. |
shane515051, you cannot get out of debt by giving money away. Not as quickly anyway.
If you are in debt, you should direct every possible dollar to the reduction of that debt, paying off the highest interest debts first. Donating to charity should be the last thing on your mind until those debts are extinguished.
Give as much as you want to charity, but only when you can afford it.
Keep reading those books.
_________________
| Quote: | | That's Mr. Gingermex to you a$$hole. |
RIP MHL 04/25/1958 - 01/11/2006 |
|
| Back to top |
|
|
ontrider
Ladies Man
Joined: 30 Jul 2003
Posts: 16491
City: Russia
|
| Posted: Jan 24, 2008 3:54 pm Post subject: |
|
|
I'll bet he is either poor or a priest. 
I actually know of a book that is much better than any financial book you'll ever read. It will change your life, it is called, "If I Owned the Earth".
|
|
| Back to top |
|
|
|
|
|
FAQ
Search
Memberlist
Stats
Favorites
Register
Profile
Log in to check your private messages
Log in
