@moursund said:
Generally, pawn shops, payday loan places, check cashing places, all seem to take advantage of those who can least afford it. I think they stink.
Consider the alternative.
Some alternatives:
Better education, minimum living wage, tighter laws against predatory lending, Maybe guaranteed basic income...
Ruh-roh, it's getting political in here...
No. Sorry. None of your suggestions is any kind of alternative. If you're in a position where you've exhausted all your good sources of credit, that is credit cards, your brother-in-law, etc., and you find yourself, for whatever reason, in need of $100 that just won't wait a week, what are your options? At that point it is too late to get educated to never get into a position where needing $100 would ruin you, and I think almost everyone knows that already. It's not likely that you'll be able to run and put in four hours at your $25/hour job. Even if you did, its not likely your boss would pay you that day. He may be willing to advance your salary for those hours, but see above. Not sure how tightening the laws would be an alternative as it would simply eliminate my "good" options. Guaranteed basic income, like all other forms of income, can be spent.
So now we have the question of whether you have collateral. If so, you can go to a pawn shop and borrow against it. I don't know what the interest rate is and do know that the loan value is a small fraction of the collateral. Also, I suppose you can sell (the would-be collateral) to the pawn shop outright. Bad solution, low percentage of value, but instant cash. Payday loans. Obscene interest rates, but instant solution to the problem. These places have to charge high interest rates because their customers are horrible credit risks. If they had anywhere else to go, they wouldn't be there. Furthermore, in these legal businesses, bankruptcy is an option. Granted a terrible option, but if you've managed your finances so horribly that you owe two years salary at 200%, it is possible to get out of it. I'm not entirely sure why someone would use a check cashing place because I'm not sure why someone would have to remain unbanked. It doesn't matter. People wouldn't go if they had acceptable alternatives. I'm sure the rate of fraud makes those places much less profitable than you think.
Are these favorable options? Would I recommend them to any but the most desperate? No, of course not, but there are an awful lot of people who think they are better than the alternative. The alternative is likely a loan shark. I doubt a loan shark is restricted to 200% interest, and of course no one is going to tell their friendly neighborhood loan shark "Sorry, I've declared bankruptcy. You just can't get your money back." The reason is left as an exercise for the reader. This last option is what "tighter laws against predatory lending" would force.
Don't set up a straw man to knock down. My position is that pawn shops, payday loan places etc. take advantage of those who can least afford it. Obviously an alternative to using these businesses is to minimize the chances of needing to use them.
If your argument is, if you desperately need $100 and have no other recourse but pawn shop, loan sharp, or stealing it, then obviously pawn shop isn't the worst possible alternative. Fine. Obvious. Now, how about moving society in a direction where fewer people are "the most desperate". And to make this coin related, it would probably help if parents give children small allowance (in coins) and teach them how to save and budget.
Pawn shop loans , payday loans put you in a hamster cage ..once in, you stay poor, never get out
In March IL .capped Payday loans , loan shark 300 % loans + at max .. 36 %..in 1 month ,all /most paydown stores in Chicago closed for good
Yes. You said: "Generally, pawn shops, payday loan places, check cashing places, all seem to take advantage of those who can least afford it. I think they stink."
daltex replied: "Consider the alternative."
Note that he didn't say "Consider possible, but not yet available alternatives".
You offered your alternatives after that.
You are really reaching... Ok, whatever. Ta!
"Reaching"? He quoted the exact text in the sequence it occurs. Your mind is just made up.
You should also include the post office on the list of "predators". They charge $1.70 per money order and people line up at the first of the month to buy 5 or 6 in order to pay their bills because they don't have a bank account. That ends up being $100 to $200 per year in unnecessary fees.. except they are necessary because people don't have checking accounts. Is that a needed service or a predatory practice?
We should also stop cable companies from selling cable TV to poor people. $150 per month to watch TV.
Rent to own. Also need to be ended. We can force appliance stores to extend low cost credit to high risk customers or the people can just do without a fridge.
These problems are endemic and often the result of the behaviors of the people you are painting as victims.
I just loaned $1000 to a friend. His wife wanted to go to Vegas to celebrate her 40th birthday. So, they spent over $2000 on the trip. At the same time, they are a month behind on their mortgage even after 6 months in Covid deferrals. I have very little sympathy for them.
Oh, and she just leased a new truck for $410 per month because she refuses to drive a used car. They are their own predators living in a prison of their own creation.
Comments
pawn shops are good for buying some things but coins are not one of them, if one wants coins there are better places to buy then a pawn shop
Check out my coins for sale at the link below mid-priced (read carefully)
** https://photos.app.goo.gl/VLi1NBeJuE7UTkCE7**
I went to my local pawn this morning and picked up a few things. Got a discount from the marked price too.
The receipt is just to show this is from a pawn store (pics or it didn’t happen) and there is a typo on it. The 21 peace was not ms64.
Couple pawn shops around me tied into coin networks..yet offer t> @moursund said:
Pawn shop loans , payday loans put you in a hamster cage ..once in, you stay poor, never get out
In March IL .capped Payday loans , loan shark 300 % loans + at max .. 36 %..in 1 month ,all /most paydown stores in Chicago closed for good
1 B&M hustles rubes selling gold 1oz Eagles... paying $150 under spot
I appreciate all the support.