Jordan asked in Business & FinanceCredit · 1 month ago

do all payday loan companies have loan sharks in them?

6 Answers

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  • 1 month ago

    Payday loan companies and loan sharks are different things.

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  • 1 month ago

    They are damaging, even though they are not the illegal sort of loan shark they still ultimately harm you so I would describe them as sharks. While they feel like they are helping at first, due to having to pay it all back quickly you could easily get into a vicious circle of borrowing all the time or rolling the loans over, just paying the interest to postpone paying it but that's just kicking it into the future and the debt is still there. Eventually the debtor has to ask family for help, which is embarrassing and that's why they got the loan, so they didn't have to do that. Alternatively, the debtor can close their bank account and make small repayments, which the payday loan company usually accepts but then that harms the debtor's credit file for years. They don't assess if people can afford it and give the loans to people who have even been turned down for a capital one starter credit card, you'd have to be damn poor for that to happen.

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  • 1 month ago

    Payday loan companies have to follow laws. Loan sharks break legs for non-payment.

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  • Alex
    Lv 7
    1 month ago

    It does seem that way. Certainly it's hard to break out of the cycle since they make you pay back the loan in a really short period of time that most people can't do. So they effectively insinuate themselves into a situation where you're getting paid by your employer for the work you've done...but they get to claim a percentage of it because you had that problem that caused you to take the loan in the first place.

    The only way I was able to escape was to wait until I was coming up to a five-payday month with two no-bill weeks back to back and only borrow $60 to put gas in the car and some cheap eats for the week. Then I could pay back the $60 the next week and live on what was left, extend my middle finger and walk out of there for the last time.

    I've never been to one since.

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  • 1 month ago

    Payday loan companies ARE loan sharks (i.e. they charge unreasonably high amounts of interest to people who generally can't afford it).

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  • 1 month ago

    ooh one time i was at the beach and saw a shark

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