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lagilmanHad a discussion with Tax Guy over the weekend about the "instant rebate" offer most tax preparers offer these days, and I mentioned the infamous J.G. Wentworth ads tht run constantly in this part of the country, offering cash for structured settlements, plus the "advance against payday" ads you see on the subways and in various other places.
Now, I know I'm a relatively educated consumer when it comes to my money, but I admit to being baffled by people who think to 'take advantage' of these deals without realizing that they're the ones being taken advantage of, by the inevitable rates they'll be charged on these 'loans,' most of which eventually pile up to be multiples of the original sum. Seriously -- the rates they charge? Makes credit card debt seem like a good idea.
And yet, people sign away endless papers saying they understand that they're going to get hosed, and take the very expensive insta-money* rather than waiting the week or three for a refund/paycheck/payment that will already be eaten up in interest payments by the time it arrives. Is a puzzlement.
ETA: as I say in the comments, if you're living paycheck to paycheck, you can't afford to take these so-called loans, because it will sink you even further in debt. But people see 'insta-money' and jump, rather than stopping to think, and saving themselves trouble a step or two down the road.
*unless you have an Offensive and Un-PC Sterotype type waiting for you outside with a baseball bat, in which case any kind of insta-money is cheaper than medical bills. But in that case, you've got to start reading the small print waaaaay earlier, 'k?
Now, I know I'm a relatively educated consumer when it comes to my money, but I admit to being baffled by people who think to 'take advantage' of these deals without realizing that they're the ones being taken advantage of, by the inevitable rates they'll be charged on these 'loans,' most of which eventually pile up to be multiples of the original sum. Seriously -- the rates they charge? Makes credit card debt seem like a good idea.
And yet, people sign away endless papers saying they understand that they're going to get hosed, and take the very expensive insta-money* rather than waiting the week or three for a refund/paycheck/payment that will already be eaten up in interest payments by the time it arrives. Is a puzzlement.
ETA: as I say in the comments, if you're living paycheck to paycheck, you can't afford to take these so-called loans, because it will sink you even further in debt. But people see 'insta-money' and jump, rather than stopping to think, and saving themselves trouble a step or two down the road.
*unless you have an Offensive and Un-PC Sterotype type waiting for you outside with a baseball bat, in which case any kind of insta-money is cheaper than medical bills. But in that case, you've got to start reading the small print waaaaay earlier, 'k?
