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What do you guys think about investing in Pawn shop or PayDay Loan companies?
- Thread starter gymratnyc
- Start date
such as??
too many politicians with their guns pointed at payday loan places.
http://en.wikipedia.org/wiki/Payday_loan
HOLY CRAP!!
The article says the APR goes typically from 390% to 780%. I don't even think some "godfellas" in Palermo charge that much. Can someone confirm these #?
HOLY CRAP!!
The article says the APR goes typically from 390% to 780%. I don't even think some "godfellas" in Palermo charge that much. Can someone confirm these #?
Quote from gymratnyc:
What do you guys think about investing in Pawn shop or PayDay Loan companies?
The economies tanking and these companies are doing more business.
In the Orlando area you would probably be too late. These companies (especially Amscot) have been springing up all over for the last two years.
As far as the %, it depends how you calculate it. To get those very high #'s you have to include the fees, it is not just the interest. Of course the end result is no matter how you calaculate the %, it is a very expensive way to get a relatively small sum of money.
Joe.
Quote from gymratnyc:
What do you guys think about investing in Pawn shop or PayDay Loan companies?
The economies tanking and these companies are doing more business.
PayDay - never. They are under pressure, and may face stiff legislation.
Pawn shops - there are 1-2 chains. I saw them in an article earlier, but cannot remember their names... They may do well if the economy really goes under, also...
It's a difficult business, you're usually dealing with a rough or down-and-out element, you have to be willing to get your hands dirty.Quote from TraderZones:
PayDay - never. They are under pressure, and may face stiff legislation.
Pawn shops - there are 1-2 chains. I saw them in an article earlier, but cannot remember their names... They may do well if the economy really goes under, also...
Ask yourself if it's worth it to you.
Quote from 9999:
http://en.wikipedia.org/wiki/Payday_loan
HOLY CRAP!!
The article says the APR goes typically from 390% to 780%. I don't even think some "godfellas" in Palermo charge that much. Can someone confirm these #?
That is correct, HOWEVER, payday loans are not yearly terms. They only last two weeks and then you pay. Typically the fees is 10-15% of the loan. Loan amounts are up to $500.
Most people that get a payday loan, never catches up, they are in the whole, everyweek.