Poor People Know How To Be Poor Better Than Government Bureaucrats
Nick Gillespie at reason.tv on the payday loan industry:
Check out payday loan critic Rivlin's comment about his own fiscal hard times, and how going into credit card debt was necessary for him. He doesn't seem to get that he's essentially arguing for maintaining payday loans for the poor -- or is it that he thinks money should just be provided for them? (People who think that way never consider or care about where that "provided" money should come from.)
My cousin Sammy the Knee Breaker really likes these new government regulations. He and his fellow underground lenders are going to surge. Know it is not gamblers and druggies any more it will be more down to earth people - a better class of customer.
John Paulson at November 12, 2010 4:52 AM
Good info. Thanks for posting.
When is the government going to stop "rescuing" everyone? Oh yeah when the government is so damn broke they can't operate anymore.
As the guy in the post above eluded to. Boy the loan sharks have to be loving this.
David M. at November 12, 2010 6:05 AM
Hey now, the state wants no competition in the welfare department. It was rather amusing watching the gov types here in Oregon kicking out the payday loan folks while promoting the state lottery with a new set of ads here and there.
Sio at November 12, 2010 7:44 AM
I haven't ever used one of these payday loan places. My feelings about them are torn.
They seem like tiny little loan-shark operations themselves.
Man, sometimes we really do seem to be circling the drain.
Pricklypear at November 12, 2010 8:15 AM
This is a good point. Payday loans and the high interest credit cards available to poorer people and those with poor credit aren't great deals - but they're often better than the alternatives like not being able to fix a car needed to get to work, or cover an unexpected plumbing repair or medical bill.
Christopher at November 12, 2010 10:28 AM
We live on revolving debt. I don't like it, I'd rather reverse that process, but right now DH gets periodic bonus's that we require for bills, that we usually spend in advance and then pay off. Hell if anyone else needs to stop my being able to do that. Why does a certain subset of the population-that seems largely to get into politics-feel so strongly that no one in the world BUT them is capable of making decisions for themselves? How does that worldview develop?
momof4 at November 12, 2010 11:04 AM
I have lived on the edge, financially, and the payday loans have saved my butt.
As an example:
I had my trucks ball bearing go out five days after payday (only vehicle). I had $145 for two people in the bank to make it the next nine days. The cost to repair was $400. Plus the $85 tow. Plus a 2 day car rental of $40.
If I had tried to debit it out of my bank I would have been hit for $105 (3 x $35) in overdraft fees. Plus my bank, at the time, time would have hit me for $5 a day after five days of being overdrafted. That would have been another $20.
I walked into the cash advance and paid $45 for a $500 loan and then deposited it. Then paid my bills. Granted I had to be slim for the next two paydays -- but I made it through.
I know it isn't the optimum -- but it is reality. I have used the payroll advance before and since. I hate doing it but am not too proud sometimes for that to be my reality.
If I had a Credit Card that could take it I would have. The deal would have been same thing -- just longer term. If you look at the typical 18% rate done over the years of trying to catch up -- I bet the numbers would be equivalent.
Jim P. at November 12, 2010 10:01 PM
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