Likewise, I was lucky enough to struggle and get by through some tough times without finding it necessary to get into debt with a loan shark, pay day loan company or title loan company but not everyone is so lucky. And it’s a shame that our government allows crooks to rob the desperate and so many people are apathetic to the situation…
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I remember one spring I was getting depressed about making ends meet, so I packed all my stuff up into my pickup truck and parked it at a friends and the girlfriend and I went on a cross country trip. Worked odd jobs along the way, saw a wonderful country, ended up with enough money to get an apt and return to college in the fall.
I’m gonna take a bit of offense at that, db4690.
I’ve gone to payday loans. I’m not bad at budgeting, nor am I bad at math. I can calculate compounded interest better than most.
The fact is, 30% interest for the use of money for a month…is better than having your girlfriend not make bail. It’s better than eviction. It’s better than having your car repo’d.
One really oughtn’t judge one unless you’ve walked a mile in their moccasins. Poor people aren’t intrinsically stupider than anyone else; it stands to reason that if they take out a payday loan, they perceive it to be in their best interest.
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Well, if you CAREFULLY read my posting . . . and I know you did, because you literally cut and pasted it . . . I said “chances are” and “maybe”
You seem to be one of those . . . in the minority, I suspect . . . who managed to do business with those payday lenders and not get sucked into a downward spiral
I don’t regret my earlier statement, and it was NOT a blanket statement
If I’d meant it to be a blanket statement, I would have MADE such a statement
Take offense all you want, if you choose to do so. None of my comments were meant to be offensive, but you are free to interpret them as you see fit
Nor did I make such a blanket statement . . . but I’ve known many poor people who stay that way, because they literally can’t make any wise financial decisions. I’ve known people who literally my equal from a financial standpoint at one time, but through their poor financial decisions, they steadily lost more and more, until they literally have nothing. I’m not saying they would have been rich if they’d made better decisions, but they would have had a much more stable and stress-free life
And there’s different kinds of “stupid” . . .
I’ve known some people with verified genius level IQ who made the stupidest decisions, and repeatedly, in some cases
And I’ve known people who got average grades, never took an advanced level course in their life, never even been to college, yet they made very wise financial decisions and are doing quite well. Kind of puts things in perspective, doesn’t it?
I understand, and I was responding more to the premise of “we have to protect those poor people from evil, predatory loans,” generally, than what you said, specifically.
I hope you don’t take what I said too personally…
No, I’m not upset about your reaction to my post 
But I understand that you wanted to point out that not all people doing business with payday lenders wind up digging their own financial graves, so to speak
And as for protecting those poor people from evil predatory loans . . . I’m not the one that made that statement, and I have mixed feelings about the whole situation. Let’s just say I have serious concerns and leave it at that
Well, since I pay no annual fee for any of my cards, and because paying all of my bills–in full–each month means that I am also paying no interest charges on those cards, I am having a hard time figuring out how I might be…suffering…as a result of them “talking me into taking all of those cards”.
Can you please explain the “downside” for me?
There may not be a “downside” for you but it is statistically an upside for merchants
Businesses are charged 1.5 to 3% of the total transaction when paid with a credit card. They gladly accept that fee and in return their per customer sales increase significantly… Would there be so many $5 per cup coffee shops if not for credit cards?
Name the industry and I’ll show you CEO’s screwing the working guy.
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I agree. It’s called personal responsibility. I pay my credit cards off every month. No annual fees.
I know people who have had multiple Visa’s…and pay the minimum payment on each card. When they max out those cards they get another card…then another…
Well, credit card companies are not in it to altruistic. They charge the retailer and in return, the retailer passes those costs on to consumers in the way of increased prices. So in effect, everyone pays for the convenience of credit cards…it’s just not as obvious as a rebate…
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Everyday we face challenges of one kind or another and there is a great deal of self satisfaction in coming out ahead. For some the struggle is at the ragged edge of keeping food on the table and a roof over their head while others laugh at television ads pedaling mostly useless junk and keep a close watch on their money by dealing with cash. Then there are those who find themselves in a position to thumb their noses at the bankers and credit card companies by dinging every bell on the board in their favor and more power to them. But you are in a very small minority @VDC. others. You find more gratification in winning the monthly personal finance lottery than in flaunting what can be bought on credit. And those on the losing end of the proposition are there for many reasons including but not necessarilly limited to irresponsibility.
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I would write a book about all the good times operating a garage but no one would buy it but just for the heck of it here’s a not too uncommon occurence involving plastic. Years ago my bank provided me with a phone modem that connected to them to enable me to verify and accept credit cards for auto repairs. When a customer presented a card for payment I linked to the bank and entered the card number and in a few seconds an acceptence number was posted but sometimes it was refused. When refused the customer usually got all flustered and handed over another card which was also sometimes denied. The next step was to try to charge a lesser amount to one of the cards and if that was successful charge the balance on the other or even a 3d or 4th card. The terrible situation was when a great deal of the repair bill was eventually put on one or more cards but the total bill could not be covered but the customer was denied getting his keys to drive home. I had a physician call the hospital and get their security department to pick him up and he swore he would never be back and thought that I would consider that an insult.
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…yes, but the prices that I pay at the grocery store, department stores, and appliance stores are going to be the same whether I use a credit card or not. When I get my car serviced, the price is the same whether I use a credit card or I pay cash. Ergo–I would be cheating myself out of those nice rebates if I decided to pay cash. Yes, I know that there are a few Mom & Pop stores that give a discount for cash, but they are few and far between nowadays. And, there are some gas stations that charge more for using a credit card, but 99% of my gas purchases are done at Costco, where they don’t accept cash, and where their price-per-gallon is lower than anyone else’s price in the area.
I even pay for my landline phone, my cell phone, my internet service, and my satellite TV service with credit cards, and my bill would be exactly the same amount from each company if I sent them a check. So, again, I would be cheating myself out of rebates, and would not be receiving any benefits from not using credit cards.
I really do empathize with the folks who max-out their cards and pay unconscionable amounts of interest and fees as a result of their lack of self-discipline. However, I don’t see their behaviors as being very much different from the people who are addicted to gambling. They lose, and the casinos and/or bookies gain. The banks are making a whole heap of money from those people who can’t seem to control themselves, so I don’t feel bad about the fact that I am a losing proposition for the banks and credit card companies by taking the benefits that they offer and failing to pay them any fees or interest.
Last year, I scored ~$400 in rebates on my various credit cards, and that money allows me to invest a little bit more of my income than I would have done otherwise. Others may be victimized by the banks and by their own lack of self-discipline, but I am not in that crowd.
You’re ignoring the fact that the retailer just considers it a bonanza if someone pays in cash. They have already adjusted pricing to reflect the costs associated with using cards regardless of how you choose to pay. In the early days, some retailers actually offered lower prices for cash but then realized they were leaving money on the table and over complicating their business by doing so.
Don’t pat yourself on the back too hard. While you’re not as desirable as someone who keeps a balance in revolving credit, you’re far from a losing proposition. The cost of card usage is already factored into retailers prices. Yes, you are getting SOME of that back with your rebates and I certainly don’t begrudge you doing so. But don’t think your use of credit isn’t affecting the price everyone, including you, pays…
So…please explain why I should revert to using cash.
What specific benefits will accrue to me if I use cash?
We just ordered some kitchen remodel stuff. Cash or check was fine but debit or credit was an extra 2%. I’ve worked so hard on paying off credit cards over the years, I just don’t hardly ever want to use them again. I guess nothing wrong with someone taking advantage of rebates but for me, they just stay in my pocket and every time I buy something and they want me to take their credit card for the immediate discount, I just keep saying no, no, no.
Brick and mortar stores that also have websites haven’t quite figured out how to combine the two assets. I recently tried to buy 8 tires at Walmart.com. The web site required I provide personal information that I don’t have to provide when I purchase something at the store. Not wanting that info on Walmart’s data base, I wrote down the Walmart product numbers, price etc, copy of the web page descriptions, and drove to the Walmart where the website said I could pick the tires up, after ordering on line. I showed the Walmart clerk there the information, my credit card, and asked her to order them for me. I told her I’d be happy to pay now, and I’d come back next week and pick them up.
"Nope! " says the clerk. “You must place an order on-line first.” When I asked her if she could place the order for me, there’s no risk to Walmart b/c I’m standing there with my credit card ready to pay. Please order them for me? Again “Nope!” … Seems Walmart just lost the profit from the sale of 8 tires.
I don’t care to keep up with all the games dealing with clubs and various cards and what the magic word for the day is so I too keep my finances simple. I have a debit card instead of carrying checks but on purchases less than $20 I count out the green. And for a great many deals down here in the sticks cash is a must for many private deals.
Of course they did ask for more info because as the joke goes ( On the internet no one knows you are a dog ). I have used the Wal Mart site and Nothing I had to provide seemed like an intrusion or unnecessary. Just what did you not want to give ?