The correct finance take is downmarseyd. I guess Redditors would rather this guy not be able to get money when he needed it.
And who's fault is it that they have horrible credit again? Not the pay day loan people.
In America? So many reason: medical debt, being in the foster system, minor crimes like shoplifting as a teen, being gay (ie your parents make you homeless), disability, a fire, your landlord ups the rent by 50% or more, your employer decides to fire you, ohh so many reasons.
Instead of being judgmental, you may want to show some empathy and compassion for those less fortunate. SPECIALLY if you call yourself a Christian.
The seethe is amazing.
It’s horrid. Places like that, payday loans/advances and rent to own businesses are nothing short of predatory. You only ever see them near poverty stricken areas of town. They just want to make your life worse
But like do you think rich people need loans to buy basic items like furniture?
The shady stores don't stand a chance there because they would laugh and then buy something that costs more than 3 of the shitty rent to buy furniture sets that have probably been repossessed twice before you got it.
So close to getting the point. So close. Just because someone is poor doesn’t mean that it’s ok to target them with your predatory shit, and it certainly doesn’t mean that these businesses even vaguely belong in working class communities.
Completely misread the point and smugposts about it.
That's all the effort you are getting out of me. So many people there with poor financial decisions.
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Redditors will forever seethe about pay-day loans, pay-to-own and other extreme high interest debt, because only 1 of 2 options can happen:
1. You have to let them exist as-is because the default rates are so extreme that the triple digit interest is the only way the loaning entities can cash flow across so many failures, or
2. You cap the interest rates available and no loans, high or low interest exist in these areas, locking the entire customer segment out from credit usage all together
Every other option is just some form of losing money on people that have proven they are bad with money. I have wh*te in-laws that literally rented their furniture for at least the last 5 years and use credit card debt to pay for vacations, they are precisely the people that will end up here because they live paycheck to paycheck while other people got by with starting on used furniture and waited to afford decent furniture
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i mean they need to be illegal and we need to create a system that allows lower income people to access capital at acceptable rates lol. payday loans are completely absurd and their intent is obvious, and that's what gets me. It's the intent of them - they're there to trap and prey on as many people as possible.
Society has at least some obligation to protect idiots from stuff like this.
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Jobs. They can get jobs
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You will not find a solution that doesn’t rely on subsidizing consciously bad decisions with other people’s money if you perform any form of short term lending.
Payday loans have a high interest because the population that uses them has a 20% default rate by the first payment. Either (1) refuse to loan to high risk individuals at all, (2) operate at a loss because default rates for the services population will bankrupt the lender, or (3) operate at a loss but subsidize from other areas of cash flow (low risk lenders, government subsidy, charity).
To be clear, payday loans are the absolute fringe of the lending economy, being the bottom 12 million Americans that continually find new and interesting ways to rid themselves of money. They operate finances the same way an addict operates a heroin needle.
We also already have the existing solution to payday loan usage. It’s called bankruptcy.
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From what I understand those rent-to-own places don't even actually charge interest on their products. They just charge a high monthly (or weekly) fee that adds up to way over msrp. They are upfront with the total cost (and even if they weren't you simply have to be able to do basic math to figure out the cost). I remember seeing redditors seethe about rent-a-center charging $1000+ for the PS4 back in the day, but nobody needs a PS4, and if you're so impulsive and bad with money that you can't save up for a few months to buy one outright you deserve to be poor
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What low-IQ lefties don't understand about wealth redistribution. That money will inevitably make it back to the pennywise eventually
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And if it recall correctly, the common rent-to-own price for the PS4 was something stupid like $80/month for 12 months. Just save money for 5 months and you have it outright.
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but i want it now :(((((
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The funny thing about all the hand-wringing is that poor people are usually fricking themselves over with terrible financial decisions for luxury goods. If you need to save up for a PS4, get a fricking used PS3 with a bajillion included games off of Craigslist. And then when shit really hits the fan, these idiots end up taking a high-interest loan and carrying the balance.
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Redditor erasure
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I'd rather live with rough looking, used furniture or cheap ikea stuff than renting fricking furniture. Boggles my mind that people unironically do that
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I mean, you're supposed to use your credit card for vacations because the insane spending racks up points to gift you a free or heavily discounter vacation in the future, you're just supposed to be able to pay off your entire vacation immediately upon return with a checking/for fun account that already has your travel budget and maybe a bit extra.
You get 5x miles on a travel card for flights so a round trip to japan is like $2k so thats 10k points right there. Youll probably get another 5x on hotels and 3x on dining, so you can recoup like 25% of the points needed for a free flight in one vacation.
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I should have been more clear on the credit card, I mean they’re still paying off last year’s vacation lmao we use the credit card for it as well but yes the balance gets paid the second it’s listed on the account
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RIP interestcels
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thanku to all the interestcels who are funding the rewards points programs
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