Money Tree Payday Loans

Nealocus123

Nealocus123

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I just bought my first motorcycle and practically drained my savings, then about a week later while driving some friends around in my car I noticed a very loud squealing noise. Turns out I really need the brakes replaced, however I don't get paid untill a week from Friday. I can afford the parts and labor when I get my check however I don't want to drive around a unsafe car.

Are these 'quick loans' a scam? I realize I will be charged intrest but to be honest I won't mind paying it if it means my car will get fixed soon. I really don't want to ask my parents for money because they aren't the most well off either but it is an option.

And as for the amount of intrest I'll be charged, I guess it's a way to teach me never to drain my savings.

Thanks for the help.
 
I know right :D

It's just that my roomate and I carpool to work with another associate so without my car a few other people get screwed.
 
If you know you can handle the high interest and high service fee they charge you should be fine. The way they stay in business is by preying on people who will keep coming back to them over and over since they'll alway be short of money and start a unending cycle. My brother did it once and he ended up owing over $2000 to them. Though he's not a good example since he's really bad with money and credit and couldn't save a buck if his life depended on it.

I would wait it out though, ride the motorcycle, take public transport to and from work, or carpool with friends/co-workers than take a payday loan. I assume you don't have a credit card either otherwise you could use that and than pay it off when the bill comes.
 
Well.

You could make like Taiwan and pile three or four people on that bad bitch.

Be bawlin now son
 
If it wasn't a Ducati Monster Hex I just might have done that. I'm probably just wait till payday and feed my friends gas untill then with what I have left. Thanks dudeskys.
 
They charge like 450% APR and I'm not even joking.

Short-term credit should be your very, very, very last resort. Use a credit card if you can, at least that's only ~30% APR (which is still ridiculous).

Debt is dumb. Avoid debt. Live within your means.
 
Just get a credit card.....If I'm going to owe a scamming company money and I know I will pay it off in time I would at least want to help my credit score out alittle.
 
[quote name='Koggit']They charge like 450% APR and I'm not even joking.

Short-term credit should be your very, very, very last resort. Use a credit card if you can, at least that's only ~30% APR (which is still ridiculous).

Debt is dumb. Avoid debt. Live within your means.[/QUOTE]

But that is if you have the loan for a year. If you pay it back very quick it doesn't seem too bad (even though I have not used one).
 
I support your decision. Just pay for gas and avoid those unscrupulous businesses. Heck, I'd rather take public transportation than risk feeding those companies my personal information.
 
I used to work for EZPawn and we had a pay day loan place next to it. I believe it was $20 for every $100 borrowed and if you pay the loan on your pay day like the name implies you should only have to pay back what you borrowed plus the fees. So say borrow $300 pay back $360 next pay day. I think you have to pay it in full in less than 15 days or they tack on insane fees. So if you have to, please pay back ASAP!
 
[quote name='rodeojones903']But that is if you have the loan for a year. If you pay it back very quick it doesn't seem too bad (even though I have not used one).[/quote]

I believe there is an actual cap on APR they can charge, but what I think he probably means is the service fee, like someone mention, $20 per every $100 which makes it that outrageous.
 
I'd be careful just because you never know when something may go wrong (and horribly so). God forbid you get your paycheck and it isn't the amount you thought it would be or, even worse, that someone over in accounting didn't just screw the pooch and can't find your check or whatnot.

No need to let a minor mishap, as unlikely as it may be, end up costing you a small fortune if you can help it. ;)
 
[quote name='Koggit']Debt is dumb. Avoid debt. Live within your means.[/quote]

Some debt is ok - mortgage debt for example.

Almost everyone is in some debt, even guys like Trump are in debt and he seems to be doing ok.
 
Go to LENDING TREE. It's actually pretty awesome. On the website or an email, it'll tell you right away what loans you're approved for....even though you still have to call and confirm.

But do NOT do those PAYDAY loans!!!
 
[quote name='Koggit']Debt is dumb. Avoid debt. Live within your means.[/QUOTE]


It sounds like he was living within in means (to an extent) except that something unexpected came up.

Key thing to remember, always keep some amount of money for an unexpected emergency. The times you would have to use it will almost always be when you spend all your money on something else (car, house, etc.). Not just living within your means, but always save for something unexpected.

Like others suggested, I would try and wait it out if you can. These short term loan places are really bad ideas and aren't exactly the most accommodating if you can't pay up.
 
The OP said he car pools with co-workers, just bum rides to work until you can get your car fixed and just offer to spring for extra gas money or lunch until you can get your car fixed.

I would stay far away from any of the Payday loan offers.
 
[quote name='BillyBob29']The OP said he car pools with co-workers, just bum rides to work until you can get your car fixed and just offer to spring for extra gas money or lunch until you can get your car fixed.

I would stay far away from any of the Payday loan offers.[/quote]
The right answer.
 
If the brakes are just squeeling then its just to let you know the pads are low... if they are grinding then you are getting to a higher cost...

It sounds like you cant do this yourself... or at least you dont have the confidence to change them yourself.

So what is it squeeling or grinding?

and just in case I dont get back either or the car will still stop just fine.. you would have to let this go on for a while to have serious issues.
 
Blue,

I disagree with you though. He isn't living within his means. If buying a motorcycle now means that you can't afford $100 ish for brakes (I think they are in that ballpark), that is bad. But a few options?

1) Have any car buddies? Brakes are something pretty easy to fix if you do that sort of stuff. My brother in law does mine, and it costs me something like $15 for brakes, and he has them in in under an hour. So, if you have a friend, you might be able to scrape the money, have them fix it, and then throw them a few bucks when you are paid.

2) Credit card is much better than this. Not only that, but since you won't have to pay it for 30 days, you can get it interest free. I'm guessing you either have a ton of credit card debt already or you don't qualify for one.

The thing is, payday loans are a ripoff, since they are for people with horrible credit. Get one, but fully realize how much your paying. After you figure it out, trying to wait it out might seem like a lot better optiion.

In the future though, you really need an emergency fund. You should have a few months of normal bills set aside for "unexpected" expenses. The individual expense maybe unexpected, but you always know something like that is coming.
 
Why not ask the Bank?!?! Does the user have Checking/Savings somewhere?

A very short term loan shouldn't be a problem... much better than losing 20/100.
 
[quote name='rodeojones903']But that is if you have the loan for a year. If you pay it back very quick it doesn't seem too bad (even though I have not used one).[/QUOTE]

The APR is the same regardless of how long you have the loan. On your receipt at Money Tree it'll even have the APR written, as four-hundred whatever percent. Yeah, you'll "only" be paying $40 or whatever, if you pay it within a week, but the point is the rate is far too high.
 
Another thing to consider, a lot of national automotive changes offer financing so I would check into that. Of course the interest rate would probably be 20% or higher but if you paid it off in that first billing period you wouldn't have to pay any interest.
 
[quote name='l_unico']I used to work for EZPawn and we had a pay day loan place next to it. I believe it was $20 for every $100 borrowed and if you pay the loan on your pay day like the name implies you should only have to pay back what you borrowed plus the fees. So say borrow $300 pay back $360 next pay day. I think you have to pay it in full in less than 15 days or they tack on insane fees. So if you have to, please pay back ASAP![/quote]

It's crap like that where the state I live in(Ohio) passed a law for payday lending business. It essentially became an endless cycle for the people who borrow, because they pay it back then have to borrow to make up the different(which they shouldn't be borrowing in the first place).

It got the point where it was affecting state workers and they passed a law where they can only charge around 7% interest instead of 300%. The businesses are crying foul about it right now, saying that it'll drive them out of business. But within 30 days, the law will be going into effect

So basically, make sure you can afford it before borrowing. Also, why not buy the brakes & install them yourself? I do that & it's cheaper($30 for just the brakes compared to $300 at a repair shop for parts & service).
 
[quote name='tangytangerine']It's crap like that where the state I live in(Ohio) passed a law for payday lending business. It essentially became an endless cycle for the people who borrow, because they pay it back then have to borrow to make up the different(which they shouldn't be borrowing in the first place).

It got the point where it was affecting state workers and they passed a law where they can only charge around 7% interest instead of 300%. The businesses are crying foul about it right now, saying that it'll drive them out of business. But within 30 days, the law will be going into effect

So basically, make sure you can afford it before borrowing. Also, why not buy the brakes & install them yourself? I do that & it's cheaper($30 for just the brakes compared to $300 at a repair shop for parts & service).[/QUOTE]

They either passed or were talking about passing something similar in D.C, it just got out of control. Just as bad as those lease to own places charging 900 for a ps3 once you do the math.
 
Is it the front brakes or the rear brakes that are squeaking? If it is the front that is very easy to replace. Basically you jack it up, remove the tires, remove 1 or 2 bolts, slid off the calipers with pads, replace and lube, and then do every step in reverse. If it is grinding then you may have to replace the rotors too which is even easier. You just slid it off the lug studs (it's held on by the calipers which you just took off). Hell you may not even need to replace it right now if it is only squeaking. They are designed to start squeaking at ~30% to let you know it is time to get new pads. If it is the rear brakes that is a little harder but usually not something requiring immediate attention.

The point I'm trying to make is there are always options available besides those payday loans. Companies like that LOVE it when someone comes in and 'has to' get a loan because they 'have no other way' or 'they need it for the next week' or something like that. That's how they are able to find a steady stream of people to prey on. You are basically screwing yourself for no real reason here if you take out that loan.
 
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