Payday loans during the Covid-19 pandemic

samlarson

LoanSafe Member
Aug 18, 2020
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Hello everyone. I see here lots of professionals and I have a question for them. I and my husband are recently moved in in the new rental apartment and after the pandemic hit, we lost about 20-30 % in our combined monthly income. First to month went ok but now we are really starting to struggle. We are both ready to have a student loan and also a 20k loan on our car so basically no bank in the country is willing to give us another one. The only quick solution is a payday loan but after reading some in on the web it seems like a really bad idea, or not. Could someone share their thought or many true stories on how they managed to struggle through a similar situation? Tanks in advance
 
S

Smile Back

Guest
We need more info. lets assume $5k is your total income. With 30% loss= New income of $3,500. Given no financials, I will just give an upfront approach chic is to do as ff:
1. With reduced income, you also need to reduce expense . Have you been tracking e 1a) Track expenses daily based on Fixed essentials like Rent, Utilities, Credit Obligations/ Student Loans, Medical Health , Transpo Ins /Maintenance and Paying yourself Funds

1b) Variable expenses like groceries, housing exp, entertainment, vacation, dining out can be reduced or totally removed so to have some left over after paying your fixed exp.

It should be on the black meaning some money left over to save for reserves.

If this is not possible then you need to increase you source of income by tapping on your retirement or reserves for Long Term Goals or get another part time income for now.

Analyze the overall pic if worth it base on what is acceptable risk tolerance, time to retirement and what matters most to you.

it would be more realistic if you can plot the numbers your nrtworth- expended fixed /variables and source of income, and plan to buy a house or file bk, Hope this helps
 
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anonymous9876

Guest
Payday/Title loan lenders are nothing more than loan sharks, praying on those who have no other source to get money. Once you take one out you will pay through the nose. Interest rates, when calculated out, are typically in excess of 125% per year.

Find some other way to handle your finances - as difficult as that may be.
 
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anonymous9876

Guest
The thing is that I've found this checker https://directloantransfer.com/blog/short-term-loans-near-me/ and couple of lenders near me are offering a really good deal.
And as that website states:

Payday loans are heavily regulated in many states and are not legal in the following: Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Pennsylvania, West Virginia, and Washington D.C.
There is a reason why at least 14 states have outlawed such lenders - although, making payday lenders go away just created a larger "title loan" lending industry which is even worse since such lenders can, if the loan is properly perfected, repo the vehicle.

Best advice. . . stay away from such lenders.