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As the Wu-tang Clan would say, “cash ruled everything around me” a few years ago when I was knee deep in house repairs! What did I do when I found myself in a bind? I welcomed some good old predatory lending also known as the payday loan and his cousin, the triple-digit interest rate! To this day, I can’t believe that I was caught up in that unnecessary tidal wave. I’m just going to be blunt and transparent: STOP THIS CYCLE NOW! This is the biggest rat trap and the most difficult one to escape from. The sad part about this is that it is designed to be that way. Essentially, there is no way out for some people. I am so glad that I found a way out, and so can you. It depends on how uncomfortable you are willing to get. Many people are under the impression that this predatory lending only effects poor or underprivileged people, NOT! It affected the middle class also during the housing crisis and the recession. I made enough money, always have.  It’s called mismanagement.

Lenders claim that these loans are designed to help people who are in the middle of a crisis, unforeseen incident, or an emergency of some sort. Unless you are near death, it’s probably not an emergency. When you own a home, a car, or any kind of property, expect things to break down or malfunction from time to time.  Guess what, shit happens. Start an emergency savings account now!

You have to be employed to be considered for this nonsense. Work over-time to build your savings account if the hours are available. If not, you may have to do something radical like applying for a part-time job anywhere to aggressively pay off the debt. I’d rather you sell things that you don’t need as opposed to selling your soul to these lenders.

A recent article posted in the New York Times states that the Consumer Financial Protection Bureau imposed tough new restrictions on so-called payday lending. The article further states that the industry is vast and operators are making $46 billion a year and collecting $7 billion in fees! Often times, borrowers are unable to pay the loans which will cause the interest rate to skyrocket as if it wasn’t already expensive.  Under the new rules, customers are restricted on how much they can borrow and outstanding loans must be paid off before borrowing money again. Let’s hear it for new regulations!

Readers, please think twice before you jump in this fire pit. Take it from someone who has been there, done that, and will never have to do that again! Do you know anyone who is caught up in the mess? If so, give them some advice on how to get out!  By the way, Christmas shopping is not an emergency. Don’t buy things on Black Friday just because it’s on sale.

Check out the books below if you need help with managing your money. I read them! Books make wonderful Christmas gifts!


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  1. The first time I ever heard of payday loans was in a HS course. I will never forget the big fat “don’t do it” sign in my facilitator’s economics room. Thanks for sharing your experience. I bet many people can learn from it!

  2. I totally agree. I work as a mental health counselor and see so many clients get sucked into this nightmare out of desperation. It really is sad. Thanks for your information!

  3. Thank you for sharing your experience, I have been brought up in an environment where i have been taught to only work with your own money and never fall for these low interest loan opportunities etc. I have literally seen flourishing businesses doom because they took loans and not able to meet there payments.

  4. I have luckily never fell into this trap! I have one emergency credit card I use for my “emergency” repairs that exceed my savings funds. I am aggressively paying student loans so my savings fund is a bit smaller than I would like so I take the “Gamble” and keep the credit card for things that pop up. I then pay that off before proceeding with my school loans. Usually my $700 savings is enough to cover these repairs (I rent) so the only thing I would have as an emergency is my car.

    1. I rent now also and I need to move to pay less. I pay student loans under an income driven /public service loan forgiveness plan. What plan are you enrolled in and what is aggressive for you? I need some tips😂.

  5. Wow, these are some unfathomable figures that you have revealed. I personally avoid low interest loans because they have so many loopholes attached that you won’t even know where your money went.

  6. This is really helpful insight. Lenders are the biggest advantage takers I know. They tend to “help” you when you are down and in need, and then once you accepted that help, you are trap.

  7. That is crazy $7 billion in fee’s, wow! Some people don’t have much of a choice but to get help this way. I can’t stop thinking.. $7 billion.. that’s just so sad.

  8. I have a friend who did one of these loans. Her lights had been cut off. I didn’t know or I would have helped her. She didn’t tell me. These people hounded her about payments. I think they start calling you the very next morning if you don’t show up on the day of the payment. And they would call several times a day.

  9. What you say is so true, rather save up a bit than going through loans I’m paying a loan and it’s sucking me dry. Thanks for the sight and interesting blog.

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