A Place for Mom's Family

Evidently this is a fully legal 'scam'.  Here's the deal - seniors, how often live on fixed income from social security checks, are being targeted as a lucrative and reliable market for these Payday Loan companies.  These companies make small, short-term loans to people to give them quick access to cash so they don't have to wait for their paycheck (or social security check!) to clear the bank.  These companies make money by charging interest...for example 15% interest for one week.  These deals can add up to an effective annual interest rate of 400%!  SOmehow these guys are able to charge these usary rates in spite of regulations out there to prevent such things.

For seniors it's doubly difficult b/c once they get into this trap, they can't get out.  Unlike younger people, it's not as if they can work more hours to make extra money to pay off the interest on these loans. So the Payday companies make the interest, each month the seniors fall further behind, and the Payday loans don't have to worry about getting paid since these are Social Security checks - completely guarenteed.

The Wall Street Journal hired a geographer to do a study of where these Payday Loan companies locate themselves; many are clustered around government subsidized housing for seniors and the disabled. 

If you know of a senior using these services - help them get off of them!  They are a financial death-spiral for someone on fixed income.

For more info - check out the Wall Street Journal on 2/12/08

 Those companies are or were supposed to be illegal in North Carolina.  However, they are here.

 How does one get out of it, as they set up for making that nearly impossible. 

 Thanks for this post. Like any other financial matter, you have to use discipline. A lot of these services can be found online now. One source

  Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} There are a lot of avenues with which you can actually gain loans and the first and foremost topic that you should actually go for is payday loans.

 Well, you're right with that. but somehow payday loan is such of great help most especially to those people who needs temporarily finanncial asssstance. I rememberd,a man struggling with attempting to pay for a medical surgical procedure, robbed a payday loan store. He was sentenced to four years of prison and eight years of probation after that.If He could have just used a cash advance to cover his medical bills then he would not have been nearly as anxious and would not need to live out a good portion of his life in jail. Get more information at:  Payday Loan.

 Hi there, with regards to short term loans, Annual Percentage Rate is not a very accurate way of getting interest. The loans only last a few weeks, and the lender would not make a lot of cash if only a few pennies were made off of every loan. This is something people do not realize as they make an effort to get payday advance laws passed throughout the nation in many different areas. Get more information at:  Payday Loan.

This is very sad to know because seniors need to be taken care of and not to be taken advantage of. I hope this will reach those people who are considering seeking the help of payday loan companies in order to lessen cases of scam and so as to protect seniors of course especially those who need to pay for their nursing homes or assisted living facilities. If there's an alternative way, a much safer way to get quick cash, seniors should have access to this.