More using payday loans for food/rent

[UMaineTeach]

Jul 19, 2012 18:45:07 GMT -5 statlerwaldorf said:

How about choosing to pay the largest items (like a rent check) first so more items bounce resulting in more charges?

If you are in a position where this may happen:

1. shop banks that only charge for the first OD of the day and shop places that may give you OD protection, like small banks that have flexibility.

2. don't pay the other bills if you don't have the money, it's better to get the electric shut off then to have the electric shut off, a $35 bank fee, and a NSF fee from the electric co.

[Deleted]

Jul 19, 2012 18:45:07 GMT -5 statlerwaldorf said:

What about the banks? Should it be okay for them to charge $35 per item for an overdraw? How about choosing to pay the largest items (like a rent check) first so more items bounce resulting in more charges? Should they not be able to turn away people with bad credit from programs like overdraft protection?

Valid point about the $35 overdraft, which is insane.

BUt really, its the interest rates at the payday places I am against;

[statlerwaldorf]

I don't think a lot of poor people particularly ones with bad credit that do not live near a lot of different banks have the option to shop around. You don't see a lot of banks in some urban neighborhoods.

[msmerymac]

Jul 19, 2012 12:02:46 GMT -5 Daria Morgandorffer said:

Jul 19, 2012 11:21:34 GMT -5 @lauriergirl28 said:

I hate payday loans with a passion. I don't think those who utilize them truly understand how expensive they are. I'd love to see them banned.

The first time? Sure. But I personally have had to use them when I was single and broke and I absolutely knew the cost. I also knew that it was cheaper than incurring $38 overdraft fees.

It sucks and they are very expensive, but you really can't say that they are duping people, as in my experience they are VERY upfront about the costs. It's just that most people that end up there have no other choice other than overdrafting their account or not eating.

I too used a payday loan service, twice, when I was young and broke. I was seriously in need of just a stop gap measure until I got a pay check or a student loan check, and then it all worked out. But I was REALLY adamant about paying them off ASAP.

On the flip side, the industry makes it really easy to roll over your loan, incurring basically twice as many fees. If you do an online loan, you sometimes have to fax things (what? who uses fax?). And if you live paycheck to paycheck and you need to spend $230 of your next paycheck paying off your loan, then what happens to the bills you need to pay with that money? That's what starts the cycle. Though that cycle will always be there and I would argue it's not the payday loan industry's fault.

Andbutalso the payday loan industry kind of tangentially pays my salary. :/

[UMaineTeach]

Jul 19, 2012 19:04:49 GMT -5 statlerwaldorf said:

You don't see a lot of banks in some urban neighborhoods.

I'll admit to not having a great schema for urban neighborhoods. The poor people I know live in towns with nothing, but gas stations, churches, and banks.

We can add to my compromise law something like the 'no new fast food where there are no grocery stores' laws and say that you can't open a PDL center unless there are 3 banks in a 3 mile radius.

[blacksred]

People using payday loans generally have no other options.

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