A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Wednesday, May 18, 2005

Payday Loans are a No-No!

I'm not a big fan of 60 Minutes. However, tonight they did a segment on payday loan companies that I think everyone should have to watch. Here's my advice to ANYONE who is THINKING about going to one of these places: DON'T DO IT!

In case you don't know, here's how a pay day loan business works:

Say you need $100. You go to one of these places and they will give you the money. You write them a check for $115 (or more, depending on the place). They will then cash the check on your pay day. Now, if you can't pay it by then, they will be happy to let you write them another check, with MORE fees. It is easy to see how a person could get into serious trouble with pay day loans.

Should these companies be illegal?

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