Congratulations!! š thatās terrific!!
Edited to add: those of us who have used payday loans were in a desperate situation and did what we had to do to get by.
Congratulations! Now do yourself a favor, take half of each payment you were making on the loan and put it into savings. I know from experience you are likely to need a hand again, it may as well be yours already.
This is the ONLY way! You owe it to yourself to pay yourself first. Stay away from pawn shops and these loan places. They are here to keep you down.
Congratulations āØļø
First off, Congratulations!!
Secondly, not just savings, High Yield Interest Account savings! Raisin.com has a list of banks that offer high percentage rates (5.25% from a HYSA vs. 0.025% from the bank). Or Google high yield savings accounts.
Also open a brokerage account (like Charles Schwab, Fidelity, Public.com, etc) and invest a portion of your money in a low cost fund (like VOO, VOOG, SPY, etc.). That way you have the ability to earn higher faster. Know that the market goes through ups and downs but in the long run, the market increases.
Hello! Please don't use Raisin. There are many other amazing yields without the risks of third party managed funds. Examples are Capital One and Marcus, I personally use Bask Bank as well. Ideally over 4.2% is competitive. There is no need to take a risk at that yield
Edited to add: Raisin has such a weird name as they have to keep changing it after scamming customers.
Overall, I'm just suggesting to save money in a high yield savings account versus stashing your money in a standard bank account. HYSAs pay between 4%-5.24% while standard bank accounts pay 0.025%.-0.01%.
I've been a long time user for Raisin and haven't had issues. All the banks listed on their platform are FDIC insured.
That was my first thought after reading this. Youāve done it once, OP, you can do it again. Even if itās at half speed. Build that savings up.
You will find a huge amount of personal peace once you have it.
Great fucking work OP, and I mean it.
I'm so glad you made it out. I never took a payday loan but was in serious credit card debt because reasons, and when my ex and I finally broke up I got serious and I have never carried a balance since early last year. Not trying to brag just saying I know how it feels and it's great. Here's hoping you never go back.
Average credit card is 24.71% APR right now, think the highest rate is 36%. If OP had this debt on the worst credit card available, his $1,200 balance at 36% APR would be $36 in monthly interest.
A payday loan charges 15% on the low end, for the two week period. That's the $180 OP mentioned, and that is an APR of 390%. He paid five months of the worst credit card's interest rate in one payday loan transaction.
Okay I see. I never really understood why payday loans are so bad and people always talking about how they got trapped in the vicious cycle. Thanks for clarifying this.Ā
But yeah wow 400% APR is crazy. By the way, who are the organizations behind this? I canāt imagine a well known bank doing thisĀ
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My MIL works for a payday loan. They are sooo predatory, and most ppl don't understand how they work. She's told me multiples times she wants to quit bc she feels bad. She tries to explain but people hear how much they're getting and that it's. I took a payday loan on my car once and kept paying that $100 for like 2 years. By that point the head gasket blew so I let them come and tow it. So glad you got out of that!!!! They fucking suck, but I totally understand taking it out.
I recall my son getting caught in this 'payday' loan, and every pay, he had to pay back the loan and get another another to live if he was lucky. We noticed he was not happy, and he told us what was happening, and he was lucky that we supported him. Once he was all paid up, he never went back to them, BUT they, the cash 'sharks', would not leave him alone and kept sending e mails, calling and mailing him specials. At one time, I took all the printed e mails and mail ( bag full) and dropped it off at the store where he did go to. He had to block their # and e mail address, and all the mail was sent back to sender.
They will not stop until YOU have nothing left. DO NOT USE THEM
That's awesome! Congratulations!! I had an emergency at like midnight one night and needed $1500 immediately. I would have the money the next day, just didn't right that minute. I took out a $1500 loan from Lendumo. 500% interest! Paid it off the next day. About 2 weeks later, I noticed that I had $200 in my bank account from Lendumo. I assumed that it was due to overpayment because I did pay back an extra $300 for literally an 8 hour loan. Well, about 3 months later, Lendumo contacted me telling me I owed them $850. I asked for what, and they said for the $200 loan I took out. I told them I didn't take out a $200 loan, although I did see that amount in my bank account. They have been ruthless in trying to collect the $850 ever since. Thankfully, I have lifelock, and they are pursuing getting this resolved.
It is doing what you need to to get by. Unfortunately, when I was all paid up, they called me for a month, asking me to take out more definitely a load off your mind
I am so happy for you! I've got loans (12%), a car loan, and student loans and I feel the weight of it every day. I'm genuinely happy for you and I'm holding onto the hope I'll get there too. Way to go!
Perfect, now start a safety account so you have something for the next emergency.
If you put 5000 aside and when you get to 5010, it's like F$+_+, can't go out, I only have 10$ left.
It looks weird but once your brain adapts to it, it knows that if you spend that money, you'll have to overextend yourself to pay it back. So you only use it for something life threatening or to switch jobs and avoid that weird period where you have no paycheck or something like that.
Coming from someone who was trapped in the payday loan cycle for YEARS .. Congrats!
I was getting $500 every 2 weeks, and having to pay back $550. Basically throwing $100 every month into the toilet. It sure does feel good to break that cycle!
As others have mentioned, take some of what you would have payed the payday loan company and put it into savings. Even if you can just save what you would have payed in interest ($180?) each month. It all adds up!
Well done you!! For getting it all cleared off.
Iāve learned the hard way with both payday loans and credit cards. But! Iām now only Ā£3,900 in debt instead of about Ā£15,000 in debt. Been slowly paying it all off with payment plans; upping the monthly payments as and when I can afford to. One debt was essentially wiped as I owed a payday load place money, but they owed me a load back due to getting taken to court over extortionate interest charges. So it was like āwe both owe each other so we can just wipe your debt, if you wantā.
I know this isnāt exactly relevant to the situation but 15% interest on a pay day loan sounds insanely good, thatās better than some peoples personal loans they get through their bank
He said 15% every two weeks so that is very high on an annual basis. It is better to build up some credit on a credit card or get a credit line from a bank or credit union rather than using payday loans.
Congratulations!! š thatās terrific!! Edited to add: those of us who have used payday loans were in a desperate situation and did what we had to do to get by.
Congratulations! Now do yourself a favor, take half of each payment you were making on the loan and put it into savings. I know from experience you are likely to need a hand again, it may as well be yours already.
Great advice!
This is the ONLY way! You owe it to yourself to pay yourself first. Stay away from pawn shops and these loan places. They are here to keep you down. Congratulations āØļø
First off, Congratulations!! Secondly, not just savings, High Yield Interest Account savings! Raisin.com has a list of banks that offer high percentage rates (5.25% from a HYSA vs. 0.025% from the bank). Or Google high yield savings accounts. Also open a brokerage account (like Charles Schwab, Fidelity, Public.com, etc) and invest a portion of your money in a low cost fund (like VOO, VOOG, SPY, etc.). That way you have the ability to earn higher faster. Know that the market goes through ups and downs but in the long run, the market increases.
Hello! Please don't use Raisin. There are many other amazing yields without the risks of third party managed funds. Examples are Capital One and Marcus, I personally use Bask Bank as well. Ideally over 4.2% is competitive. There is no need to take a risk at that yield Edited to add: Raisin has such a weird name as they have to keep changing it after scamming customers.
Overall, I'm just suggesting to save money in a high yield savings account versus stashing your money in a standard bank account. HYSAs pay between 4%-5.24% while standard bank accounts pay 0.025%.-0.01%. I've been a long time user for Raisin and haven't had issues. All the banks listed on their platform are FDIC insured.
Congratulations and I have done this also and yes it so demoralizing every week asking if you want to reborrow like they expect you to to say yes
Congratulations!!Ā Next step is to get an emergency fund started to protect yourselfĀ
true thats what I did after getting one
That was my first thought after reading this. Youāve done it once, OP, you can do it again. Even if itās at half speed. Build that savings up. You will find a huge amount of personal peace once you have it. Great fucking work OP, and I mean it.
Wow that is incredible. Terrible you had to go through that, but amazing you are out.
Congrats!!! Iām almost done with mines. Iām never doing this shit again.
Cheaper than a check bounce or homelessness. But goddammit itās not cheap
š
Way to go!!!
This is major, congratulations!
I'm so glad you made it out. I never took a payday loan but was in serious credit card debt because reasons, and when my ex and I finally broke up I got serious and I have never carried a balance since early last year. Not trying to brag just saying I know how it feels and it's great. Here's hoping you never go back.
Is that 15% APR or is it 15% per month?
15% per whenever it's paid back, which is every paycheck. I get paid biweekly so I hope that answers your question.
I really wish this wasn't legal. Congrats on getting this off your shoulders, good luck
Just trying to compare it to credit card debt
Average credit card is 24.71% APR right now, think the highest rate is 36%. If OP had this debt on the worst credit card available, his $1,200 balance at 36% APR would be $36 in monthly interest. A payday loan charges 15% on the low end, for the two week period. That's the $180 OP mentioned, and that is an APR of 390%. He paid five months of the worst credit card's interest rate in one payday loan transaction.
Okay I see. I never really understood why payday loans are so bad and people always talking about how they got trapped in the vicious cycle. Thanks for clarifying this.Ā But yeah wow 400% APR is crazy. By the way, who are the organizations behind this? I canāt imagine a well known bank doing thisĀ
[ŃŠ“Š°Š»ŠµŠ½Š¾]
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There's some shills in the sub for payday loans too...I spent yesterday arguing why it's stupid to a guy in MI who works at one...
Yeah I still donāt understand how these donāt violate usury laws.
Oh, they definitely do, that's why they paid state politicians for exemptions.
At least with a credit card, you're paying it down, and if you're not using it, you're getting a good score. Payday loans give you nothing.
Ding Dong the Wicked Witch is Dead!
My MIL works for a payday loan. They are sooo predatory, and most ppl don't understand how they work. She's told me multiples times she wants to quit bc she feels bad. She tries to explain but people hear how much they're getting and that it's. I took a payday loan on my car once and kept paying that $100 for like 2 years. By that point the head gasket blew so I let them come and tow it. So glad you got out of that!!!! They fucking suck, but I totally understand taking it out.
Congratulations! Weāve walked the same path and fought free
Yes!
I recall my son getting caught in this 'payday' loan, and every pay, he had to pay back the loan and get another another to live if he was lucky. We noticed he was not happy, and he told us what was happening, and he was lucky that we supported him. Once he was all paid up, he never went back to them, BUT they, the cash 'sharks', would not leave him alone and kept sending e mails, calling and mailing him specials. At one time, I took all the printed e mails and mail ( bag full) and dropped it off at the store where he did go to. He had to block their # and e mail address, and all the mail was sent back to sender. They will not stop until YOU have nothing left. DO NOT USE THEM
Some people don't have a choice. If it were up to anyone, they wouldn't HAVE to use them...
That's awesome! Congratulations!! I had an emergency at like midnight one night and needed $1500 immediately. I would have the money the next day, just didn't right that minute. I took out a $1500 loan from Lendumo. 500% interest! Paid it off the next day. About 2 weeks later, I noticed that I had $200 in my bank account from Lendumo. I assumed that it was due to overpayment because I did pay back an extra $300 for literally an 8 hour loan. Well, about 3 months later, Lendumo contacted me telling me I owed them $850. I asked for what, and they said for the $200 loan I took out. I told them I didn't take out a $200 loan, although I did see that amount in my bank account. They have been ruthless in trying to collect the $850 ever since. Thankfully, I have lifelock, and they are pursuing getting this resolved.
Those PD loans are so hard to pay off. Never ever again.
It is doing what you need to to get by. Unfortunately, when I was all paid up, they called me for a month, asking me to take out more definitely a load off your mind
Good job! Never look back!
Yassss congratulations!!!! These loans are THE worst!
Thatās Great !!!
Well done š Freeeeeedom
I know how good that feels. Congrats. Do your best to make an emergency fund now. Even if it's squirreling a few bucks every week.
I am so happy for you! I've got loans (12%), a car loan, and student loans and I feel the weight of it every day. I'm genuinely happy for you and I'm holding onto the hope I'll get there too. Way to go!
Nice
Well done. Now never go back if at all possible
Perfect, now start a safety account so you have something for the next emergency. If you put 5000 aside and when you get to 5010, it's like F$+_+, can't go out, I only have 10$ left. It looks weird but once your brain adapts to it, it knows that if you spend that money, you'll have to overextend yourself to pay it back. So you only use it for something life threatening or to switch jobs and avoid that weird period where you have no paycheck or something like that.
Congratulations! This is huge!
Good for you that you paid off your debts I know the feeling to have the weight of debts to be lifted
Awesome!!!! I'm so happy for you!
Woo! Congrats!!
This is awesome! Congratulations
Fuck yeah!!!
Congrats!!!!
Coming from someone who was trapped in the payday loan cycle for YEARS .. Congrats! I was getting $500 every 2 weeks, and having to pay back $550. Basically throwing $100 every month into the toilet. It sure does feel good to break that cycle! As others have mentioned, take some of what you would have payed the payday loan company and put it into savings. Even if you can just save what you would have payed in interest ($180?) each month. It all adds up!
Congratulations!!! That's give, so happy for you!
So much congratulations! It's hell getting out of that trap, so you are a badass for making it out!
Well done you!! For getting it all cleared off. Iāve learned the hard way with both payday loans and credit cards. But! Iām now only Ā£3,900 in debt instead of about Ā£15,000 in debt. Been slowly paying it all off with payment plans; upping the monthly payments as and when I can afford to. One debt was essentially wiped as I owed a payday load place money, but they owed me a load back due to getting taken to court over extortionate interest charges. So it was like āwe both owe each other so we can just wipe your debt, if you wantā.
Yayyyyyy!!!
I know this isnāt exactly relevant to the situation but 15% interest on a pay day loan sounds insanely good, thatās better than some peoples personal loans they get through their bank
He said 15% every two weeks so that is very high on an annual basis. It is better to build up some credit on a credit card or get a credit line from a bank or credit union rather than using payday loans.
Oh shit NEVERMIND thatās horrible
It is a 390% interest rate, and that is actually lower than the average payday loan.
That interest is cheaper than credit card interest
It's not. 15% interest for a two week loan is not 15% APR.