Outrageous rates

Did you know if you owe a certain cash advance company $3,874.98 for used furniture and make the required payments of $113.97 per week, you will pay them more than $8,295 for this used furniture, and if you miss one payment they can take it all back even if you have already paid them more than $6,000. Why would anyone fall for a deal like this? A guy I know has paid them around $6,000 on this contract and they still want another $1,300 to pay off this contract or they will take all the furniture and leave him nothing. They call this a package deal so you can lose everything at once.¬ Are these nice guys?

Did you know you can borrow $400 from a payday-loan operation and pay them $60 every two weeks and, in one year, you have paid them more than $1,500 and still owe them $400? That is 391.07 percent interest, according to their paperwork. Can you believe people fall for this deal, and they make a killing doing this to people?¬ 

Another operation lends at 497.72 percent interest, according to their paperwork.¬ If you borrow $350 on Aug. 4 you would owe them $402.50 on Aug. 15. So if you continued at this rate for one year you would pay them¬  over $1,725 and still owe them the $350 you borrowed. People fall for this also. Did these people that fall for this take math in grade school? In my opinion, these places are taking advantage of mostly poor and maybe uneducated people.

I am sure other short-term loan and rent to own places operate about the same as these. Before you sign one of these contracts, be sure and talk to someone you know and can trust to give you good advice.

If you have a loan with one of these short term loan places, and they are a member of Community Financial Services Association of America, you can ask them to set you up to pay your balance off in four equal payments, possibly monthly, or at least by your payday, before loan is due, with no more interest added.

Glen Teel

1208 Motz