The Donald POV #10 Payday Loans and Bell Biv Devoe

Welcome to “ The Donald PO

V” I’m Donald Fittsgill Jr bringing you my point of view on everything I want to talk about, literally everything, and trust me, I’ve gotta lot to say so without further ado – Let’s Go Question – Do youremember the name of the song that came out in 1990 that told you to never trust a big butt and a smile? I do… In 1990 Bel Biv Devoe came out with a song called Poison And I remember singing the song in the hallways at school, specifically singing the part “Never trust a big butt and a smile” Though I didn’t understand it, I thought it was interesting that Bel Biv Devoe really wanted to convey that there was something untrustworthy about a big butt and a smile Together

In conjunction if you will So much so, they would sing it fast and energetic and then they would sing it slow and soulful Just really trying to get their point across I guess And then they told you That girl is poison By definition Poison is a substance that causes injury, illness, or death

There’s – Bel Biv Devoe’s song there’s an 80’s rock band , Poison Ivy, Cyanide, Hydro flouric acid, mustard gas and pest control to name a few But there’s also another poison, and this poison is a predator, you tend to find this poison in middle and low income neighborhoods, in-fact you see it everywhere in low-income neighborhoods , usually lit up with colorful signs–This poison is PayDay loans – Never trust a loan shark and a smile Let’s Go Payday loans grant people, such as yourself, money, ranging from a few hundred to a few thousand dollars at a time The borrower then has to repay the loan with interest (and fees), usually a couple of weeks after origination

As collateral, payday lenders hold personal checks or bank account ACH information for repayment It doesn't take much to qualify for a payday loan Usually you need to be at least 18, be a US citizen, have a bank account and be gainfully employed

Most payday lenders charge you a specific dollar amount per every $100 borrowed Payday lenders are also notorious for adding on additional fees for transaction costs Let’s assume you take out a $500 loan, This loan will generally charge about 20 per 100 which means in 2 weeks you now need $600 to close out your $500 loan If the loan is extended past the 2 week period , you owe another $100 bringing your total payback amount to $700 As you can probably tell, this can get out of control very quickly

What tends to happen to a lot of people is that, if circumstances don’t change, you end up having to take out another payday loan to resolve your current payday loan This is a viscous cycle that is very difficult to escape from This is great for the payday loan company, but horrible for the borrower So much so, that some states in the US, don’t even permit the practice of providing payday loans because they view it as predatory lending In addition to being extremely costly, obtaining payday loans also damages your credit score

So what can you do, if you have an immediate need and no money You speak with your existing creditors Look companies, when presented with the option of being paid late or not being paid at all, will typically choose being paid late Especially, if you can agree to some consistent payment schedule, even if its small It is worth your time, to reach out and at least ask for leniency

There are also charitable credit counseling agencies, that can help you with your finances and in a lot of cases, they may even contact your creditors on your behalf to help with your situation You can reach out to your employer to see if they have an advance pay system in place or you can see if your employer will allow you to sell your outstanding vacation time Again it doesn’t hurt anything to ask Except maybe your pride And while I don’t recommend borrowing money to pay creditors if possible, a short term loan from your bank or low interest credit cards would be better options than using a payday loan as well

Once the immediate need is gone, you should definitely focus on strategies that would help prevent this situation from happening again Things like, creating a sustainable budget, an emergency fund, taking a part-time job or even selling possessions that you don’t need In short, if you’re thinking about using a payday loan, think again You can’t afford it And remember, never trust a loan shark and a smile

That shark is poison Well folks, thank you for tuning in to The Donald POV If you haven’t already, please subscribe, Please tell a friend, please tell a random person about this show

You can Follow me on Twitter @thedonaldpov And if there is a certain topic that you would like for me to discuss feel free to let me know Till next time, I’m Donald Fittsgill Jr and This is the Donald PO

V