For some reason I keep seeing this topic trend so I thought I'd add my 2c. Which is actually the 2c of Dave Ramsey of the Dave Ramsey show, financial guru and NYTimes best seller. And I'm actually responding to usury, I'm not sure what you are asking about foreclosures since these are two completely different things... The link to the full article is at the bottom:
QUESTION: A Twitter listener asks how payday loans work and why they're located in seedy areas or near military bases. Dave explains.
ANSWER: Because they're an absolute rip-off. They're scum-sucking bottom feeders. These people are horrible. The average payday lender makes an annualized rate of return in excess of 700–-800% iterest. They do it in small quantities so people can swallow this stuff, but basically, they'll take something like a $200 advance and have you write them a check for $225. Two weeks later, they cash your check for $225. That's a payday lender. If you annualize a $25 interest rate over two weeks on $200, if you were to go back time and again and do this, you would be paying 800% o your money, and lots of people are serial payday lender customers. They get stuck in this horrible deal and can't get out.
Other things to stay away from:
Ron Paul - Intellectual hero
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