i know some of my friend who are borrowing money and paying 400% on it.if people are willing to pay 400% interest, let them charge that!

Read about me at www.newstartcanada.com.I currently have a pilot small loan program starting to help people get out of this trap.My money is not cheap, but it most certainlly within the legal limits.The bank charges 9% and pay day companies charge 200-1500%.The legal rate in Canada is 60%.It still confuses why people are paying this high rate and lenders can openly get away with charging this rate?
I have been microlending for thirty years and I have never lent to someone that cannot pay back.This basic approach is not shared by other lenders .

hey susanhendricks..
that's the whole point of payday loans...

their business model is directed towards high risk clients.. this means they have to charge higher interest rates. This is pretty expensive for most people.

I'm saying that it's worth it for the consumer to take the time to get their money and credit in order , so they don't have to deal with a company like payday loan companies.

Why pay higher interest if you don't have to.

Payday loans Trap because the payday loan companies have to charge high interest rates is because honest customers have to pay for unpaid loans of people who do such things and do not pay their loans back.
http://www.310loan.com/

Hi Monty,

I am also stuck in this trap. Its ridiculas. My husband has a good job but I lost mine about 3 months ago, we have 5 children, mtg, bills, debt and etc. I borrowed from a payday loan company and make good every 2 weeks I pay back in full. But within 2 days of repaying it I have to go back & re borrow it. I am not too sure how to get out of this, but this time I am trying to go without a little to just get through so I can get out of it.

I think they are worse than loan sharks.I totally agree with this woman in the video who seems to have a conscious & a heart. I hate that we are in this mess and my husband gives me proper .... you know what if I go back again. I just borrowed 500 from them 2 weeks ago it cost me 617.59 to pay them back in full I have been caught doing this ever since November so I can only imagine what theyhave made off a sucker like me. Oh yes they offered me a conveient payment plan with an extra fee to cover more interest than what I am already paying but I declined it & just paid it back in full. We just repayed them back this past Thursday. We have got ourselves caught in their "TRAP" I have left 100 to do us for the next 2 weeks until my husband get paid again. But I wont go back to them I dont care I never will go back.

This time I will do whatever I can to stay away from this type of loan.

I do warn people dont go there payday loans are a TRAP!!!!! Ok I did the basic math & now I am even more angry at myself for doing this I have paid them over 720.95. Yes I think next time I will budget a little better & just stop this stupidity once & for all

denniss...
do your customers express that they're really happy to use your service.
Or is it a last resort type situation..
do you get letters of praise or thank you from your customers?

Charging people such a high interest rate is a last resort option IMO

I bet that the store manager that is in the video is simply an unhappy former employee. If you get a loan from a bank and do not pay it back and it gets transferred to a collection agency, the collection agency would use the same tactics as payday loan companies do to get the money from you. Payday loan companies try to minimize expenses by doing in-house collections and a lot of collection agencies are not willing to accept small accounts like payday loan companies have. It is too much work for them for too little commissions. She had an example where a customer borrowed money to pay to a trustee to declare bankruptcy! The reason why payday loan companies have to charge high interest rates is because honest customers have to pay for unpaid loans of people who do such things and do not pay their loans back.

This is an interesting video about payday loan companies.

Payday Loans Trap Borrowers