As of July 1, 2010 Payday Loan centers in the state of Arizona are supposed to close their doors for good. The only thing that has kept them open this long is a House bill that was introduced. It’s great to watch politics feed on the uninformed, they love to use scare tactics along with these outrageous percentage numbers to try and scare people into voting there way. State Senator Chuck Gray was quoted as saying “When they charge 400 percent interest and burden those families with those kinds of debts, …”
So lets educate ourselves a bit, $500 payday loan, which by the way is the max you can get from an online loan lender. Yes many claim they can give you up to $1500, they can’t. It’s a ploy to get you to sign up.
- $500 Payday Loan at an average of $17.50 per $100.
- You pay back $587.50
- Which equals an APR: of 456%
I fail to see the issue here. I am sorry you have not been responsible enough to be able to afford a loan with a better rating. Personally, if I am in an emergency and need $500 dollars I think it’s worth $87.50 to be able to have that piece of mind given to me in minutes without having to worry about my credit history, days of loan approval process, unending paperwork and then being forced to open an account at a bank that I don’t want to bank at.
But lets look at who is actually complaining..
- The people that can’t pay back the money and now are in more debt
- The bureaucrats that are mad that it’s private store owners that figured this out and not there large financial firms.
What this comes down to is we are becoming a nation of overly tolerant people. We no longer expect individuals to take responsibility for there own actions, it is easier for us to scream regulation and punish those doing no wrong than it is to look at the real issue which is financial immaturity of the average consumer. I say immaturity for a reason, these are not bad people taking out loans, they are simply making poor decisions because they can, and that is where the true problem exists.
Another example… I think it’s outrageous that my car loan is at 7.5% and my neighbor who purchased the same vehicle as me only pays 5%. So does this mean I am being taken advantage of? Should we shut down all major financial institutions that give out car loans because I missed a payment on my VISA card a couple of times and now have a higher interest rate? No. I am responsible for my own credit and therefore pay the additional price for these errors.
I have to share a final quote with you. A women in Arkansas was quoted as saying “When my car broke down, I only rolled the loan over 4 times to pay it back.”. This is a perfect example of poor choices and lack of responsibility. Your car broke down, this is a perfect situation to use a payday loan if you do not have the money now. BUT, if you are unable to pay the loan back, your ass should have gotten on the bus. I am sorry your incapable of seeing that resolution, but shutting down a legitimate cash loan business because your incompetent is just ridiculous.
Take responsibility people, take pride in yourself and your decisions.
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