You have heard of companies like Payday Loans, Rent-to-Own, and tote-the-note car lots. We see the commercials and stores for these “lenders” aka scum of the earth that legally gets rich from the backs of the poor or to be poor. They prey on lower-income people and by doing it keep them at the bottom of the economic scale. The interest rates charged by these so called lenders are well over $100 percent!!
One of the fastest growing lenders in the country is Payday loans. Because they get rich off your money!
The basic principle is you write a check to them for $225, postdated for your payday because well you don’t have the money right now. In turn they give you $200 for a small fee of $25. Sounds great? Think again that $25 equates to over 650% in interest annually!!!
Though they have it figured out that you won’t do that once but you will be back because you will need more money before your next check. That’s because they are taking a piece of your paycheck each time. This spiraling out of control leads you to financial debt that you can’t get out of.
Tote-the-Note Car Lots
This group is not better that the other one. When you see these places they are selling old cheap cars. The deal you think you are getting is not true. The amount they require for a down payment equals the amount they paid for the car. So the payments you make on a weekly basis of about 15-40% interest are just cash in their pocket. They also have another scam they like because they know you most likely won’t be able to make your weekly payment and they can repossess the car and make money off another person on your dime.