The Predatory World of Payday Loans

[@thefinancialfreedomgirl]

had some production mixups that led to 3 videos being posted this past week! hope I'm not overwhelming y'all's feeds and thank you so much for watching! hope you like all the vids :)

[@eponymouscharacter]

Christmas in June 🎉I’ve enjoyed all of them!

[@kevins8500]

I am still a new subscriber but love your videos. Please overwhelm away haha

[@gbjockey7]

My summer vacation started so I've been watching all of them while crocheting! :D

[@anne-mariep.5767]

You should do a deep dive on afterpay and other one like it they seem so insane to me I mean I can understand the appeal on a big purchase like a refrigerator or a computer but you can get some for lipstick at sephora now like wtf.

[@janisir4529]

3 per week? Some people I followed just dump 10-20 at once.

[@passiert1027]

I took out a payday loan once in my life and paid it back less than 1 week later. I was moving apartments and my paycheck was coming just a few days later than I needed it. When i went back in to pay it back so soon, they were noticeably surprised to see me. They kept trying to get me to extend or something. I just laughed and said, 'No, you will never see me again.' and walked out fully paid off.

[@Kirasfox]

😂😂 good on you dude...those folks are slickkk

[@jin394]

Curious how much it cost you extra when you paid it off so quickly.

[@mopillo88]

​@@jin394it doesnt. You just pay a few bucks cause of the interest and thats it. Payday loans are meant to be paid in NO MORE THAN 2 WEEKS

[@xPRODIGYxGAMER]

​@@jin394 There is no such thing as paying more for paying off early. Prepayment penalties are not the norm. And even if he had one, prepayment penalties are always cheaper than paying to term. Typically they are flat fees (extra $25 or whatnot). And prepayment percentages are cheaper than the APR of the loan.

[@Ratclawz]

It’s wild that someone making minimum wage trying to f someone else over it’s disgusting

[@DaniRC623]

I used to work for a bankruptcy law firm. The worst payday loan I've ever seen came with a 1,667% interest rate. Absolutely disgusting.

[@thefinancialfreedomgirl]

wow! that is absolutely awful

[@candy2325]

That is fuckin crazy 😨😱

[@EnlightenedMinarchist]

Dude, youre supposed to pay them off in a week or two. Youre not supposed to wait a whole ass year to pay your loan off. If you take out a PAYDAY loan which youre supposed to pay back on your PAY DAY, and you wait a while ass year and get charged almost 1,700% interest, I DO NOT feel bad for you. In fact, you deserve to be in the position you are.

[@randomguy17399]

The reason it was so high is because they charge about $17 per $100 you borrow but the payback date is always when your next paycheque comes in. So if you borrow a day before your next paycheque the annualized interest is gonna be way higher than if you borrowed 2 weeks before your next paycheque. It’s still awful but ultimately you pay back the same price.

[@sanhakim1335]

​@@EnlightenedMinarchist All payday loans are, is rebranded credit card debt. If you miss a credit card payment, the APR is like 20-25%. Credit card companies still make good money. Nearly 1700% APR is absolutely exploitative and predatory.

[@Christina-g4s]

When it comes to lending a friend money, only lend what you're willing to lose. Odds are you're not getting that money back

[@Icarus47249fd]

That's like the first couple of lessons you learn in life. I remember in my early youth from elementary school lending couple of dollars to friend, they'll make up all sort of excuses of how they can't repay it back. Basically you just learn people are unreliable, and untruth worthy. It' serves a person well through his/her life. The second lessons is how vulnerable you're. Let say you're an illegal immigrant, people would treat you different, you'll get taken advantage of, this is vulnerable. It could be financial status to medical health issues. I said I have peanut allergies, the people proceed to purposely put peanut in my food. Then, I say I have ADHD (which I don't), I was basically denied of health services. The next lessons that you'll learn is to never 'accept loans.' Basically they're predatory. If you can't afford college, it's' better to postpone it than paying outrageous interest rates.

[@cameronrobinson8650]

When loaning money to family and friends, you have to be prepared to either lose the person or lose the money.

[@donwald3436]

I've been burned by that, now I only gift never lend.

[@esmaalashabi4528]

Thats a very good insight:) Actually this is why in islam interest is prohibited and you only give loan whenever you have extra money that you are willing to lose this is so we can help each other in times of need, but it is obligatory on the receiver to pay it back unless the loaner forgive them or incase they cant pay back the government pay it back from the Zakah(islamic taxes)

[@ogre706]

In most cases this is too true... sadly.

[@0p0a0s4]

I only know how horrible payday loans are because I used to see my mom worry over them and I remember that she always went to them around Christmas time. While I'm grateful she wanted to give a good childhood, I never want to be in that position.

[@emilyau8023]

These sales people are so disgusting

[@ma_junia]

Stable but humble homelife 👩 moms: 😐 Christmas gifts and other luxuries + constant, visible stress over debt 👩 moms: 😍

[@hhjhj393]

Im sure little timmy can live without the toys.... My dad spent thousands on YuGiOh cards and now that I am older I wish he never would have done that and instead just saved that money for college.... If I have kids I will give them an allowance for tasks they complete, but other than that I would rather just save the money into funds for when they are older.

[@deirdrecampbell638]

Credit unions are a great alternative if the option is available! I worked as a teller at one after college and I saw our lenders figure out arrangements to help get our members out of the payday loan cycle. I often say that working as a teller is like being a financial nurse lol. Lots of horror stories, but I learned a lot about money management, especially how to handle debt.

[@thefinancialfreedomgirl]

that's amazing! credit unions are such an awesome concept to me, and it's cool to hear from you what your experience working there was like

[@comicsans3537]

Mine is just as bad as my credit cards, at or more than 25% :( Idk how others get better, I was at 730 credit score when I wanted to apply...

[@melissagold2573]

I work at a credit union and when I first started, I pelted my supervisor with a thousand questions about salary advance loans because they made no financial sense to me. Basically, the main reason my credit union offers them as a lending product (even though they're not very sensible, even with lower interest rates) is to keep members away from predatory lenders, and I thought that was a very interesting way to look at it.

[@timeoflittlebells]

I’m planning on applying for a job at my local credit union as soon as I turn 18 in August, it’s reassuring to see others with good experiences 😊

[@stanable9716]

Yup! You guys are financial EMT’s having to triage members! I work in bank operations and I take phone calls from tellers who need advice and my word some of these people are put through the wringer

[@rosettagrey2851]

I can't believe loan sharks gave themselves a cool new name and suddenly it's something normal to do.

[@CountingStars333]

That's what they are. Loan sharks.

[@ADobbin1]

Worse, I can't believe the government has given them legal status.

[@supernova743]

Trying to get a short term loan from a bank is like pulling teeth. People who get the payday loans dont pay them off and thats why they get stuck with high interest rates. Get the loan, pay it back. If you cant pay it back dont get the loan. I went into a loan place, read the contract and realized it would be better to pay the late fee than get a loan.

[@drchops]

" ... paid on the desperation of hurting people." Hearing that line at the start made me feel a bit less pathetic about still owing 6k in payday loans after cutting off an emotionally and financially abusive family. I have my feet under me now and there's the end in sight, but holy shit it has been a long, lonely and broke year.

[@thefinancialfreedomgirl]

proud of you for the progress you've made and continue to make!

[@gethina-come7885]

Stay strong 💪💪

[@VaeMhairi]

Hang in there! It's a tough journey for sure, but you did the hard thing and it'll only get better from here.

[@comicsans3537]

Yup, partner is in the same boat :/ These places are fucking deplorable...

[@haute03]

Rooting for you, sir! You got this!

[@lilmorsecody]

i remember when growing up (in the UK) there were so many ads on TV for these kinds of loan services, they all had names based on british slang terms for money and the ads showed people walking into a shop and walking out with a stack of cash then going on holiday or something. Confused me so much as a kid why everyone didn't just go and get this free money😂. You've just made me realise I haven't seen any ad like them for years. Maybe the government cracked down or something.

[@SallyHur93]

They did, in 2014 the FCA started regulating them and one of the things they did was put a cap on the interest rates. Also grew up with the ads! 😂

[@yasaminwhy8212]

Same! Yes, they were regulated, but only after a HECK of a lot of public pressure. Can you imagine what would've happened during the cost of living crisis, had we still had payday loans? So many people would have fallen victim.

[@candybracelets]

Once they got regulated in the UK customers who had been charged exploitative interest rates were allowed to make compensation claims, and as a result all the scummy lenders went bankrupt. It was wonderful to watch such poetic justice.

[@JinjaNinja88]

It's great that these scummy companies aren't around any more but you can't say justice was done. Because they claimed they were bankrupt, people who won claims against them were paid pennies for every pound they should have been given.

[@roanred555]

Yes, in the UK, they definitely did.

[@LocallyConstantDuck]

Half of all personal finance is just not taking on high interest debt

[@thefinancialfreedomgirl]

high interest debt really is such a hurdle in achieving financial freedom

[@Lonovavir]

Pretty much, step one is don't buy junk you don't need to impress people who don't care about you.

[@detroitvinyl]

@@LonovavirSure, but that's such a privileged take. People can live frugally and still not make ends meet working low wage jobs. They can't buy in bulk, get higher quality items, etc and are drained from their jobs to even look for another one.

[@darickfoxo7986]

@@Lonovavirmost ppl are getting thing they need, especially in this economy and I don’t have a pay day loan or any subprime cards

[@dbased1915]

no bad debt, lived very cheap most my twenties, and invested heavily over the last 8 years. These paid off big time over the last 3 years.

[@MichaelJEngelmann]

It costs money to be poor. (As a lifelong poor person)

[@elosacle]

"Poverty charges interest" -Tay Zonday

[@akapbhan]

Not really. My grandparents were poor but first lesson my grandfather thought me is about cycle of debt. You can teach your children to not fall for this cycle. My parents never had any debt apart from mortgage. I've never had a debt so far in my life. I'm from a "third world" country but still don't own a credit card or debt and have lived in a rented house most of my life.

[@MichaelJEngelmann]

@@akapbhan sure bot

[@akapbhan]

@@MichaelJEngelmann Yep because anything that challenges your opinion has to be a bot. lol. My grandfather grew up on kanji and finger millet balls. He could not even afford to eat rice as a child when Americans claim poverty to be something like eating rice and beans.

[@MichaelJEngelmann]

@@akapbhan you’re literally challenging what I said. I said as a poor person, it costs money to be poor. “Not really” 🙄😂

[@realkevintaylor]

I lost my job during Covid but I was OK with that because I had over $120,000 saved up in the bank and then in 2020. We got hit by two hurricanes and I didn’t have home insurance and all my money went towards fixing my house, not once but twice, I ran up $65,000 in credit card debt and as of today I only have about $1000 left to pay off. It’s such a great feeling.

[@battlebob]

Why would not have insurance in place you can have hurricanes?

[@Rokca719]

Many places where natural disasters pop off often enough have no insurance company willing to under write damages. Think Florida.

[@candy2325]

No home insurance? 😨😱 glad you had the money saved up!

[@ReclusiveNatured23]

Sheesh

[@dp2120]

@@Rokca719that’s not true. There’s always an insurer available. In extreme cases where private insurers won’t, the state has to offer an option.

[@trustedroot]

when I moved out for college, my mom warned me against these payday loan places. I have never stepped foot in one and never plan to

[@Agaettis]

It's so sad....I noticed recently when going on a trip, the closer we got to a "bad neighborhood" the more cash advance, pawn shops and payday loan places that popped up. At some points the being in the same complex right next to each other

[@DekutreeRipoff504]

Growing up, I was told to look for the payday loans, next to hair salons and phone stores like MetroPCS. They always were across the street or even in the same strip mall. That indicated going into a more seedy area.

[@wturner777]

⁠@@DekutreeRipoff504That is so true because you almost never find any of those places in middle-class or wealthier neighborhoods. And it’s all by design.

[@wturner777]

And don’t forget liquor, corner and dollar stores.

[@raaaaaaine]

Thank you for your clear explanation and analysis of this topic. I used to teach personal finance to teenagers with intellectual disabilities - a group who is especially vulnerable to predatory tactics like payday loans, without the understanding of what a high interest rate actually means. Having access to interesting videos like this one is a big step in the right direction. Keep up the great content 😊

[@thefinancialfreedomgirl]

thank you so much! so glad that you found the video interesting and useful! and such an awesome thing you were doing with teaching personal finance :)

[@methoyu]

it’s nice to see someone treat this issue in the nuanced way it deserves. i often see people talk down condescendingly to people that take out payday loans, as if they’re somehow morally superior for being more financially secure (hell, i’m seeing it in this comment section) people that fall victim to these kinds of predatory loaning practices deserve to be treated with dignity instead of being laughed at

[@darcybhaiwala7057]

I agree. You can't blame people going to broken solutions when all they know is a broken structural system

[@NINJAxBACON]

Most people need the help, but it's naive to say some people aren't outright unintelligent. The woman from one of the clips took out an enormous payday loan to pay for a vacation when she was already behind on bills.

[@buddahluvaz8]

I agree about being condescending and laughing at them (don’t) but some of these people need a good “WTF dude!” They won’t stop and listen to “the nuance” the same way they won’t read the fine print on a payday loan.

[@fluffypocky]

People aren’t condescending about them taking them out, but about them not paying it back at the stated deadline knowing that the interest rate is sky high

[@CatsMeowPaw]

I was at a pawnbroker (buying silver coins, no way would I borrow money from them) and overheard someone being offered a four week loan at 30% interest. 30%! That is absolutely disgusting, and you know what, there's no shortage of customers.

[@comicsans3537]

You think that's bad but credit cards are 25% minimum APR now :)) How tf is this even ok?¹

[@supernova743]

​@comicsans3537 25% apr is over the year. Payday loan was 30% for a month, or over 300% for the year.

[@123batina]

This is illegal in EU. And even loansharks here charge around 1% / day or 10% / month on bigger loans. 400% average? Legit company? Wow.

[@almcaeobtac]

Wouldn’t 1% a day work out to ~365% annually? Or is my math not mathing?

[@moooping1161]

1% compounding every day works out to a yearly interest rate of 3778.34%

[@123batina]

@almcaeobtac yup. Still less then 400% avg. And compounding, my mate. Those are loansharks, they deal in absolutes, not high level diferential equasions. As in, 100E, 30 days, pay back 130 euros. After that you pay interest in broken legs if loan is not paid back.

[@longlivethe9989]

10%/month is about 320% a year, which is in line with 400%

[@btafan11]

​@@moooping1161It's only 3678.34%, you forgot to subtract 1. Not too bad

[@WinS392]

some payday loan providers now even ask for tips. they ask for tips to help them "provide a valuable service". unbelievable. those ones often call themselves "earned wage access". they won't admit to being loans unless you read the fine print.

[@tomlxyz]

How do people react? How many people do end up tipping?

[@WinS392]

@@tomlxyz i don't know how many but some people apparently do. there was someone on Caleb Hammer who was totally broke, but gave tips to a payday loan app (think it was the app called "dave" in that case)

[@MR3DDev]

You know you are in a low income area once you start seeing these things.

[@baconoftheark]

When I was in uni making 32k/year...I didn't know about these loans. I just recently discovered BNPL and payday loans last year xD

[@v_bunny]

i’m 21 and still know nothing about this stuff. i clicked immediately because now is for sure the time to learn before i go out and become financially independent 😭

[@jeremysmith54565]

You really want to stay well clear of them, I've been involved with them over a decade ago and trust me I dont miss them in the least! (I'm from UK myself though, but seriously dont go near these crooks if you really can).

[@thefinancialfreedomgirl]

so glad to hear that you're learning about this stuff and I hope this video helped a bit!

[@v_bunny]

@@jeremysmith54565 as soon as she said texas was a super predatory state i engraved in my brain to never go near one 💀 that’s a long time to be involved with them, glad you got through it!!

[@v_bunny]

@@thefinancialfreedomgirl you don’t know how helpful it was, i need all financial info given to me in a video like this

[@LMD40]

Best advise she didn’t give is always read before agreeing to free money something is only a predator if you make yourself the pray let’s not make being the victim cool take responsibility and read before you agree they do not hide what you will owe.

[@roanred555]

Most people who borrow from payday loan companies know the interest is extremely high. The issue is that it's difficult to get a loan anywhere else. They've gone to the bank and been declined. For whatever reason, they can't borrow from friends and family. Payday loans are a last resort. The only people who may be genuinely taken advantage of are people who may not have a full grasp of the official language of that country.

[@JB-tz8fu]

Debt is debt. I just closed my Affirm account. I liked paying over time, but i hated seeing month after month the same bill 😂. Besides, at least with CCs, young get points & can cash withdraw. Stay debt free young people. Please

[@jordanmcgrory2171]

In states which prohibit payday loans, a similar high interest short term product often exists. I saw one example where people could borrow money for 2 weeks using their car as security.

[@hgonz14]

Yep, Arizona is one of those states.

[@tomlxyz]

I've heard nothing good about those car backed loans

[@s.s6499]

lemme guess, those lenders wouldn't mind if said car being used for collateral is on finance?

[@daydreamlover15]

Thank you so much for this!!! I’m a college student so money is always always tight for me. I’ve got a system with my parents where I’ll ask to borrow money with the promise of paying it back the next pay week, but almost always end up coming at least a little short. With my parents, I feel embarrassed but at least I have some grace. These companies are absolutely brutal.

[@doomy_doomy2225]

Curious what you are spending on. I stayed at home during college and never owed my mom nothing back working part time.

[@CJ-jy4vd]

@@doomy_doomy2225everyone’s situation is different. We don’t know how much she’s makes in the first place, nor how much she borrows from her parents. Could be $20

[@jirehguy]

6:54 dont be fooled (with at least Georgia) they may not have pay day loans but we still have pawn shops, car title loans, and the like which are as bad as pay day loans if not worse.

[@wilmavoss9654]

In Denmark, high schools are obligated to teach about the dangers of these kinds of loans. You learn a lot of useless stuff in school but this could actually help a lot of people later in life

[@bremsberg]

Yep, the problem comes from miseducation. Folks get knowledge from random KZbinrs instead of school.

[@CountingStars333]

​@@bremsbergRandom youtubers can be better than school. Worse too.

[@jean-baptistehartmann5879]

Payday loans should be illegal

[@darbymichelle]

Yes they should it’s appalling

[@steadystackin7250]

If people stopped getting them, they would go away.

[@JohnDoe-mx9ut]

Nearly all loans give you money with a certain interest rate. The only issue with payday loans is people barely know how to read and/or understand what interest is. Hopefully people start educating themselves before signing the line.

[@eliminat]

Organised crime would love that.

[@Ziko577]

@@rtothec1234 This is why the mob made so much money and then once these places became commonplace, they're services weren't needed anymore. It was also due to the gov't coming down hard on them that got them out of that business.

[@arasb3258]

7 times?! Guy here. I will wear a set of shirts 300 times each, until holes appear, then be FORCED to buy more shirts, exactly as the ones being replaced 😅

[@GrapevineTexas111]

Fr the first time in my life , I'm on monthly installments .......n it's killing me, seeing almost half of my salary going towards it n I'm basically left with nothing 😭 It made me realise, that I should pay on one go or don't buy at all If it's not life saving then it can wait.

[@tomlxyz]

What did you buy?

[@ethanmayact]

Dang 3 videos in a week?? Another awesome video, Cara, these payday lenders are insane.

[@thefinancialfreedomgirl]

haha yeah i had some production mixups so they all ended up coming out this week!! glad you liked the video!!

[@juangonzalez9848]

2:45 Who the hell only wears clothes 7 times before throwing them out? I’ve got three sets of pants on rotation and they’ve lasted for 2 years. Maybe 10 shirts that get rotated through as they get destroyed at work, but they last a lot longer than 7 wears.

[@randomguy17399]

I once got trapped in a payday loan cycle. Think it started with about $500. After about 3 months the only way I was able to break the cycle was to get another job, then sit in massive discomfort for about 2 weeks and just get out of it

[@FerintoshFarmsPhotography]

Most people just don't get it either. My mother had one, and I kept trying to talk her into paying it off with any extra money she'd get in but she just didn't get that if she paid it off faster she would owe less money. They limited the interest rate to 100% here in Alberta.

[@blanketfortressofsolitude5270]

I'm pretty sure I'd rather fake my own death than take out a payday loan.

[@niknak950]

Awesome, I was literally just about to look up what payday loans were cuz Caleb yells about them all the time and I had no clue what they were and why someone would use one.

[@francescamarie1220]

sadly stuck in a debt trap right now. I borrowed pay it back and then end up needing it after all my bills are paid ): hoping I can break the cycle soon.

[@TheRealCatof]

Stop buying door dash

[@haute03]

I hope you're able to get out of this cycle. Wishing you the best!

[@syasyaishavingfun]

Eat only rice with soy sauce this month. Ask your landlord to extend the time to pay the rent. Put all your money into paying off the loan.

[@tigers7834]

If you do get one pay it do not extend it. You have to pay the fee each time and that amount can get crazy. You borrow 300 and your fee is 50. Paying that 50 every 2 weeks is going to make you sick once you realize how much you spend. Life happens and I needed to do this

[@DMAN-xk5ni]

Payday loan companies are very smart, they know if you have a job they’ll get their money anyway. If people are willing to sign the contract, there’s nothing illegal about it. Demoralizing yes but not illegal.

[@s.s6499]

yep..and most people don't read about the products they buy before signing the contract or declaring their compliance to the T&Cs of that product.

[@holdenroberts6973]

They really should be illegal, though. And are in some places.

[@Alice-oq4jm]

Payday loans were banned in the UK a few years ago for these same reasons

[@yandirn2478]

The only thing you neglected to mention was the racial disparity and how these predatory loans disproportionately impact Black and Brown people. Not to mention the fact that that banks are more willing give loans to/prefer White customers.

[@xgrimesreaper]

growing up, my mom was caught up in the payday loan debt vortex. she needed it one time but because every month she still needed that money she had paid back-it was a cycle of paying it off one day just to borrow it again the next day. the rising interest with each borrow meant she was paying up to an extra $100 every time. and eventually, it got to the point where she just didn’t pay it back and never got it again (thankfully)

[@_corbz]

5:41 I remember that one company that had jingle that went “no credit checks, no credit checks, we finance everyone!” and I remember it always made me feel so uneasy. Now I know why.

[@91Vault]

I remember a few years ago seeing all these ads for "quick loan" apps suddenly start to pop up at once (with names such as "Wallet Wizard" and "Nimble") . Having it on an app presented via a fun little advertisement on TV certainly made it look a lot less shady than a grubby pawn shop...but it was essentially the same thing only now marketed to people who would otherwise have no idea what a payday loan is. Dunno if most of them are still around.

[@davidinwashington]

I got stuck in the payday loan rollover cycle for a couple of years. I wouldn't wish that on my worst enemy.

[@TargetRenegade]

I've been binging Zac Rios recently and I've nearly finished all his videos. I'm glad I've found this channel in my recommendations. The amount of insane debt out there is frightening.

[@vicoussoulja]

Ugh, all the more reasons financial literacy is what we all start with, but is more difficult to grasp without the right path of education. Great topic, never used or will use payday loan. Yet, worth learning about.

[@kdurand7878]

Ohh this was a great topic to cover. You should do a deep dive into Buy Now Pay later services, those seem just as predatory! I would be so interested to learn more about them. Thank you for all you do LOVE LOVE your videos and message! ❤

[@brittbritt6857]

I worked for AF. This system preys on the vulnerable. The target on senior citizens hurt me the most I didn't last a year

[@AJfromLA818]

Many individuals that use cash advance services are fully aware of the costs but continue to choose it over traditional banking. Banking also is predatory in that they charge fees for small deposits and overdrafts, and is much harder to track spending, particularly those not used to banking apps. Instead it’s much easier to manage budgets especially at the lower income level with cash as it is tangible. Credit cards are similarly much more foreign than cash to those not accustomed to how it works, and is probably even worse than banking in terms of fees and interest rate charges. This is not meant to be a defense of predatory lending practices, but an acknowledgment that it offers a financial lifeline to those disenfranchised by traditional financial systems

[@WhiteBorderMTG]

I've never seen a bank that charges to deposit and I definitely wouldn't use one that does.

[@bluecrocks]

they can only get you if you lack knowledge. Knowledge is power exactly for this reason, its a sword and a shield.

[@cococock2418]

Imagine blaming people instead of predatory companies

[@bluecrocks]

@@cococock2418 I literally never said that. I'm young too, I'm just not naive.

[@LMD40]

@@cococock2418I mean imagine blaming a loan that you failed to read the terms cause you wanted money now. It’s not like they hide what you will owe them. I guess the same people that take out school loans then cry about paying them it’s called accountability

[@LMD40]

⁠​⁠@@cococock2418you may not understand this but people who use these types of loans already have maxed out there credit cards and have trash credit and can not borrow money from banks or private lenders it’s like your last option.

[@Because-rt8qs]

You can't take knowledge to your landlord. You have to bring money.

[@mcruz2357]

I know that some people have been de-banked or never had a bank account to begin with. This makes it hard for them to cash a paycheck. Often it is the payday loan places that they go to because there is also no holding period on checks. Even if they are not getting a payday loan, these people are paying a significant percentage if their paycheck to access the money that they earned. It really is expensive to be poor.

[@jcnot9712]

“We feel like we have to flex” No we don’t. Stupid people do.

[@ogre706]

She's not wrong though, the vast majority of our society does get caught up in this game of being one-up on each other. Aka keeping up.

[@jcnot9712]

@@ogre706 and the vast majority of society is stupid. Hardly would call that a “we” problem.

[@icanhazgoodgame3845]

The ones that give you couple 100s for 5% fee to cover a flat tire are ok short tem but if you are constanting floating from loan to loan you will get yourself in expensive trouble very quickly

[@electricpenguin32]

The main road in my town is full of these payday loan places. I hate it so much and being a low income area it feels super gross and targeted.

[@wudaa2524]

I moved from Maryland to the “south”- Alabama, I grew up most of my life in Maryland and I remember only ever noticing payday loan places once I got down there. I had no idea they were banned up in Maryland.

[@JoeBLOWFHB]

Yeah well at least Alabama State law caps the maximum loan amount at $500. Oregon the cap is $50,000!?!? Some states even allow the cap to be up to 30% of your monthly income.

[@bigzubber]

I feel no sympathy for people that get fed by these garbage companies, obviously there are some exceptions but, it’s honestly hard to feel bad when 2 minutes and a google search shows you that you are signing up to get royally fed, I searched “Are payday loans good” and the first thing that came up was “Avoid payday loans” and then a whole ass article explaining why. I’m sorry but unless you are truly fed without it, you shouldn’t take it, and a lot of people aren’t when you break there earnings down, you’ll see most don’t even know how to budget, how to save, how to even buy groceries and look for sales, it’s sad that broke people don’t even know how to make a shitty meal plan to save as much as possible. Idek if I can blame the education system anymore when we all have phones that can basically tell you the answer to everything, don’t know how to meal plan, here, don’t know how to budget, here, don’t know how to invest your money, here, people acting like they don’t have hours to spare, if you’re on KZbin you have free time, use it.

[@mckennadishongh2160]

Where blaming the education system comes in, is people no longer are taught in school how to learn things for themselves after they leave school. This should be taught by good study habits and parents but it is not being taught and kids are being passed while failing every single possible test and assignment. Year after year after year. Then they’re adults. And have no idea that they even lack knowledge. That’s the true danger. Idiots and uneducated don’t realize they are. If they do realize then probably they are also lazy even if they aren’t super super dumb and only kinda dumb. Unfortunately this leads to bad decisions. There’s no reason to assign blame. Just help the people around you in your life and community.

[@Cucumberflavoredmustard]

Don't buy stuff you don't need, with money you don't have, to impress people who don't care.

[@methoyu]

what a strange comment. while she did mention that, a lot of the other examples were people who were dealing with emergencies, as well as people in the comments saying that they fell victim to payday loans bc they were trying to get out of abusive situations. you can’t simplify a nuanced, multi-layered problem by boiling it down to “people being stupid with their money”

[@Cucumberflavoredmustard]

@@methoyu I can be as reductive as I want to be, because irresponsibility with money leads to being shorthanded when emergencies come.

[@TheRealCatof]

@@methoyu They should have saved money up for emergencies.

[@syasyaishavingfun]

@methoyu not saying you are wrong, but people are just too proud to beg. Beg your friends, family, strangers, church, government, etc. But begging should be rare occasion. Some people beg too much for inconsequential stuff when the shit hit the fan they have no one else to beg.

[@Cucumberflavoredmustard]

@@methoyu But isn't it interesting that people who are smart with money generally have it for emergencies?

[@DancingSk3L3tons]

I fell for it 😔 I think people like myself honestly think you cna pull it off, you'll pay it back in 2weeks because you'll put in a lot more hrs at work or you'll figure something out by then. Then it turns into this ridiculous cycle of paying it off & going back in the next day to take it out again to cover the same bills. For me, amscot just turned into 1 of my regular bills, had to factor it into the budget like my car note. I think it took a lil over a yr for me to finally come into enough $ to pay it off. I wanted to take a sht in their lobby as a final fk you when it was all over. 😑 Yeah I said that.

[@randomgirl01300]

In my country, if you get paid through a bank, (as in your employer has a contract with the bank where they give the bank money and the bank gives the money to the employees), you can get a pay advance in a few clicks since whatever you get they'll simply not put it in your bank account next month. I didn't know you had to go to your employer in other countries

[@cwicseolformask]

This is probably related to the prevalence of “at will” work in many states in the US - essentially in most jobs your employer can fire you with no notice for any reason (as long as you can’t prove and successfully win a discrimination lawsuit) - so hardly anyone has real job security, and there’s no assurance of future wages to rely on if there’s no assurance of work. This is why Cara said that getting an advance from your employer is on the rare side, and she gave two other more reliable options first.

[@randomgirl01300]

@@cwicseolformask Wow. Where I live, it's hard to get fired because your employer has to prove they fired you for a valid reason. And then they have to give you a severance package that's a portion of your wage based on the amount of years you've been working for them and unused vacation days. I've never been fired, so I don't know how it works exactly, but one of my friends did get fired and he got around two and a half months worth of wages based on working there for one year. No vacation time to be paid. I love having work security. I'd live so anxious knowing I could get fired at any time for no reason.

[@cwicseolformask]

@@randomgirl01300 I haven’t been fired but I’ve worked alongside a lot of people who have been fired and even more who have been laid off. In the first case the only thing you can do is apply for unemployment benefits, which are firstly low, and secondly very slow to get - sometimes it takes months. Given the combination of (no) savings culture and a high cost of living relative to decades-stagnant wages where most people can’t handle surprise expenses, this almost universally turns into living on debt. (It’s less extreme in immigrant communities which still have a savings culture, though.) Layoffs with severance are as far as I know not mandated to comprise anything in particular - sometimes they’re good and sometimes they’re pathetic. Worse, most Americans get their health insurance through their employer - until the ACA (sometimes called Obamacare) there were very, very few options for people after leaving a job voluntarily or involuntarily to receive any kind of health insurance, especially if they’d ever been sick or injured before, and in many states you’re still not eligible for public options if you don’t meet a MINIMUM income - in short you can be *too poor* to get insurance if you aren’t 65 years old. Then add to that: health insurance doesn’t mean your care is paid for; it just means you pay some amount less than 100%… so just about the worst thing that can happen to an American is to get a severe illness or injury, because you can lose your job and your insurance, be ineligible for benefits for multiple months even in a successful case, meanwhile the rent or mortgage is still due, and many times if you don’t have an income you may not have access to any debt at all, since nobody wants to lend to you if you can’t pay it back. As in this video, even payday lenders want to see you get $800 a month. You can go from middle class to homeless in a matter of one car wreck or cancer. It’s already patently insane. Several groups of wealthy people in the government and insurance industries are getting richer by making it worse and are very eager to repeal the few sections of tattered social safety net that remain.

[@fzaan5]

@@randomgirl01300 r They are exaggerating what happens in the US. you don't get fired for no reason, there's always a reason either you arent doing the work expected or reaching preformance benchmarks, or the company doesnt have money to keep u on. And the advance you are talking about, is just another loan guranteed by your job. not an advance, a loan based on u having stable employment.

[@yohaneskustiadi9807]

Do they know interest rate means? i even know it when i was in high school. let alone 1000% interest rate, even 10% interest rate is to much

[@jefflewis4]

If you don't have the money to pay the rent, you're worried about being evicted from your home, you're not worried about interest rates.

[@Skatelifefool]

Wow that's a point I hadn't thought of before. Debt owed takes away from money spent around your local economy.

[@rabd3721]

Criminal. Absolutely criminal business model.

[@Cut_tape-x9j]

I took out a few of those loans in 2009/2010 at 18yo and then again during the pandemic. it ruined my credit rating at the beginning of adulthood and right when I needed as much of my adulting ability as possible.

[@alexg3348]

PS: time shares are a trap. avoid them like the plague

[@kassandralillian6064]

Just saying hello for the algorithm because this is such an important topic ❤

[@equally.marketable]

There is no such thing as free money 🗣️🗣️🗣️🗣️🗣️

[@mysterybuyer3738]

Take the payday loan and not pay it back? Close your account it was linked to.

[@333mikeray]

Every week we have electricians who take out a pre week of payroll. We charge them $300 for them to get 1 week pay early. They all make between 28 to 75$ hour. They all drive unpaid for 100k pickup trucks. All of them gamble and most dip,smoke and drink nightly. I dont get it. I drive a 2015 paid for Ford van. They make fun of me. Look here comes gay Ray and his lunch pail of sandwiches.

[@JOHN-um2]

This is a non-issue. It’s a choice.

[@fridgeffs5662]

I had a payday loan and went to prison so when they called and realised they were not going to get paid back they just wrote it off. But i would not reccomend trying this yourself.

[@vwgirl]

AZ had to stop it because they were out of control in the state. These places started doing tax returns and check cashing. Then one advertising they were Native American owned with a 1500% interest. Not a typo 1500 percent interest rate. Imagine going to them for a 100 dollar loan now cost you 1500 dollars and that if IF you pay before the interest cycle starts that will add another 1500 dollars.

[@tallglasscocoa6105]

During the pandemic, mom and dad and grandma and grandpa were taking pay day loans out. When it was time to pay back. They called their senators and cried. We didn't know. Now, the Payday Loans has a new target. Young adults, we want it now. We are college educated and social media savy. We know what we are doing. Ok!! A Loan Shark is still a person who will bReak your arm or leg if you dont pay. Now they are more corporate and mess up your credit rate, which is worse than getting b3at up. When you interview for that dream job. Sorry, but your credit is so bad, and we can't offer you the job.

[@StinkyBlack1]

Better off opening credit cards. Don’t get me wrong you’re still screwing your self, but less hard.

[@lamMeTV]

Intentional living? So ... living? ... do you wanna sell me vegan tomatos too? Do I get a deal if I buy the asbestos free cereal too?

[@kondratov8269]

Won't the payday loan collectors also spend the money, reintroducing it into the economy?

[@woiowoiow190]

Its not predetory when a grown adult is able to read the contract they sign to get a payday loan. Thats just irresposible and a easy way out. Always read the contract or paperwork before you sign.

[@esmeecampbell7396]

This is why I invest in payday loan companies 😂

[@GotKimchi]

Who here complaining about 3 videos in a week? Not me!

[@MH-dm4ev]

As someone that worked 16 yrs as District Manager my pay was great but I hated working there. It was very sad. I actually didn’t feel bad for the young people , it was the old people on fixed income that tear me apart. Most were paying on time every month for years like it was a light bill. 😢

[@asdasdasdasdasd9795]

ALL interest based loans are predatory.

[@roythousand13]

Cara, did anyone tell you that you like Aubrey Plaza?

[@tantanman2852]

In the UK they are heavily regulated, but more can always be done.

[@thefinancialfreedomgirl]

that's great that the uk regulates it more!

[@gejamugamlatsoomanam7716]

There is an episode on this in "last week tonight" by john oliver

[@dannyb7981]

Well done! Informative financial essay, good editing, good sound quality. Instant sub.

[@TheMoneyMakingMentor]

Why don’t they just take a cash advance on their credit card

[@alessandrorossi7135]

What I don't fully understand is how do these lenders expect the others to pay up? Do they take collaterals? Even if they sue them, they won't have money to pay. They could be jailed, but that still wouldn't get money out of them. How do they get the money back?

[@rowancook4369]

They can probably garnish your wages

[@plasticbagtm9892]

I had no idea they existed but omg that’s scary to imagine people might get one of these and have no idea the amount of money they could end up owing 😟

[@tjlevey378]

Bombas my go to hiking socks for real did not think you would be sponsored by them 😂😂

[@LaurenSophie1989]

I never heard of payday loans in my country. Turns out they are not very common here and they are heavy regulated: - term of contract is between 5 and 62 days - max. interested rate is 40 Prozent - not more than 600 Euros (about 650 USD) - you can't get a new loan if you haven't paid of your old loan (so it is not permitted to replace a current loan with a new, bigger loan) - you can't extend the term of contract.

[@rahjaejohnson]

Ironic that on this video I got an add for “fast loan advance” lol insane

[@davisfamily9510]

I love how down to earth, chill, and honest this channel is.

[@bradperez3649]

If Jennette Mcarty had black hair * Subscribed! Good info

[@EscolaDoExilado]

I loved the "new" background! haha

[@Jeez001]

Apps like Earnin should be banned..

[@lxnny2357]

Hot take: the many world governments should step in and outlaw most financial products that exist today in favor of a much smaller set of products that are precisely regulated and make it illegal to create new classes of financial products without heavy scrutiny and academic analysis. The issue today is that financial products pop up so quickly that the government can’t regulate them fast enough and once they’ve permeated into society it becomes extremely hard to outright outlaw them since they’d have to unwind so much. The reason I believe this is because fintech is breaking society by offering products that don’t add value to society beyond existing products but just exist as traps for the lower and middle class. Financial products shouldn’t be allowed to live in a strange gray area until we realize how many lives it’s destroyed before regulating it. The problem with operating like this is that conmen are sophisticated and will always outpace the law to keep their pockets filled. Some things to consider: 1. Many cutting edge financial product started out as traps that the government later had to regulate because the abuses got so bad that the total economy was impacted negatively 2. The common consumer isn’t aware of how to parse through all of these complex financial products 3. These products actively destabilize the economy 4. These products often don’t provide value to society Things we know we need: 1. Liquidity 2. Appreciation in value over time The first is satisfied with preexisting credit products and the second is satisfied with standard investment types that already exist. Anything new is essentially just a repackaging of some combination of these two things…

[@Roger-vz7ol]

Your obvious answer to this situation is to have an emergency fund of six months on hand. How do you think people are going to save this amount when they are barely able to live from paycheck to paycheck.? These payday loan companies are disgusting predators with no morals whatsoever but you also need to look at the condition this country is in. Our government also plays a role in this scam lending by letting it happen legally.

[@Jcat24]

Before I decide to take on any debt (I wasnt like this always), I think to myself , how many hours/days/years do I need to work to pay the debt off and secondly , when I had a lot of debt I calculated the interest of all the debt combined and it was amazing how much of my salary went on interest a month and making some else rich and I realized if I get out of the debt that money I paid on interest I can save and spend it on stuff to improve my life, of course I understand there are times you need a loan to put food on the table for your family today and you cannot wait till payday or any urgent emergency. Of course most people need to take on debt to buy a home or a vehicle.

[@TharsanJeyachandran]

great ep

[@jmsl_910]

this video made my heart hurt. i hope it reaches your target audience...or that your subscribers share the video with those who are most at risk ty cara this is really good work

[@thefinancialfreedomgirl]

thank you so much - i really appreciate it