Payday Loans???

iVillage Member
Registered: 02-04-2004
Payday Loans???
8
Thu, 02-11-2010 - 11:17am

What can you tell me about these payday loans where you go to these places (or maybe they're online) and they advance you money from your upcoming payroll? Some of you know that we are trying to intervene with my parents to at least get them to see that they are living recklessly and at their age and in their health it's not good.

I believe they are using these type places. Moneytree.net or something like that. They are payday loans for a certain # of days and then they have it withdrawn from their account on a certain day after the paychecks go in.

Aren't the rates SUPER high? and are there fees in addition to interest?

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iVillage Member
Registered: 08-02-1998
Thu, 02-11-2010 - 1:19pm
I have never heard anything good about borrowing from one of them. Luckily I have never had to go to one.


iVillage Member
Registered: 02-04-2004
Thu, 02-11-2010 - 1:31pm
No kidding. I was curious about how they were coming up with interest rates of 391% (for example) but I just read something online that explains it. If you borrow $100, you pay a $15 fee. That's for a 2 week loan. If you want to extend the loan an extra 2 weeks you have to pay another $15 fee. They extrapolate what that would be over 1 year if you have to keep adding an additional $15 fee every 2 weeks. That would be $390 for the year for a $100 loan.
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iVillage Member
Registered: 08-04-2008
Thu, 02-11-2010 - 1:32pm

OMG these loans are horrendous!! Upwards of 50% interest or more as it is charged by the day.




iVillage Member
Registered: 02-04-2004
Thu, 02-11-2010 - 1:53pm
I know. It's gotten so ugly that I don't want to touch their finances with a 10 foot pole. We are trying to get them to agree they need help, but until they hit rock bottom I'm afraid it might be too difficult. Once they agree, I will suggest a court appointed "representative payee". That will be fine, but I do not want to that job.
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iVillage Member
Registered: 10-01-2008
Thu, 02-11-2010 - 2:19pm

Oh Kathryn, I was hoping you were making some head way with your mom on all of this.

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 02-04-2004
Thu, 02-11-2010 - 2:23pm

Thanks. It's not just the money, but she's telling her friends that we said some "hurtful" things to her and she always tells them "I'll spare you the details" because if she told them the details, she would never get support. So, they are all feeling sorry for her.

She's lying to her landlady about why her rent is late and she's lying to us about a lot of stuff. We have LOTS of ways to find stuff out and she doesn't know how much we know.

My brothers are going to go see her soon and see if they can have a calm and rational discussion, but I'm not sure they will be open to it. We want to make sure my dad knows, because we think he's in the dark on a lot of stuff.

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iVillage Member
Registered: 09-22-1999
Thu, 02-11-2010 - 7:29pm

Dear Mom,


I just wanted to wish you good luck with this.

iVillage Member
Registered: 02-04-2004
Thu, 02-11-2010 - 10:03pm
Thanks. It is definitely tough. It would be a totally different scenario if it was my adult child (no, I don't have adult children, just using that as an example) or a sibling, but as parents, they are having a REALLY hard time getting past the fact that we are the children and they are the parents. They do NOT want to be told what to do or how to act by their children. It's as if we're scolding them. They also have this thing about lying and it was a cardinal sin in my family growing up. NO ONE lies in this house type of thing, so now they are being caught and we are not saying it out loud, but all thinking they are hypocrites. So I think the pride thing is getting in the way and at the same time, they continue this behavior and come to us and ask for money.
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