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For desperate Americans considering a payday loan, here are other options


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From an article linked to the article linked by Hege, here's an interesting tidbit:

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The origin of the U.S.’s common two-week pay cycle is somewhat mysterious, but one thing is for sure: It’s costly for workers.

It's not mysterious at all. When companies like ADP came along in the 1970's offering data processing and outsourced payroll services, companies jumped at the chance to cut some overhead by eliminating some HR/Payroll headcount and using ADP for payroll. But that outsourced payroll comes at a price, and companies figured out they could cut their payroll expenses roughly in half by doing half as many payrolls in a year, from 52 to 26. Fast forward to today, not only are those who don't know how to budget for a two-week pay schedule getting themselves in a bind, also those who are unbanked as these same payroll processing companies have pushed companies into doing mandatory direct deposits by charging significant fees for creating live paper checks.

 

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1 hour ago, GreenDragonLady said:

I don't think I've ever been paid weekly.  I worked for state government for years, which was bi-weekly.  Now I'm twice a month.

My career in government saw paychecks once a month...supplemental payroll came mid-month and so you would see the occasional new employee that had to go almost six weeks before being paid.  I actually preferred once a month...it forces one to live within their means. 

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This is why I have a healthly savings account. I work as a caregiver for the elderly and when my client passes on I not only lose a friend but I become immediately unemployed. Thankfully I practice sound financial forecasting, live within my means and I do not run up cc debt. Thanks much to the prudent advice right here on Creditboards I haven't made stupid mistakes in several years. That's freedom to me. Just the thought of payday loans makes my skin crawl.

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24 minutes ago, creditmaze said:

This is why I have a healthly savings account. I work as a caregiver for the elderly and when my client passes on I not only lose a friend but I become immediately unemployed. Thankfully I practice sound financial forecasting, live within my means and I do not run up cc debt. Thanks much to the prudent advice right here on Creditboards I haven't made stupid mistakes in several years. That's freedom to me. Just the thought of payday loans makes my skin crawl.

 And that, my friend, is what distinguishes you (us) from knuckle draggers.  Anybody can make mistakes, but the key is learning from them.  

 

In addition to controlling our bowel habits, we also control our spending.

 

When the math gets tough, we remember that God invented math apps.

 

PayDay loans?  Unfortunately we can't outlaw stupid.  

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24 minutes ago, IndyPoolPlayer said:

A few states have "outlawed" payday loans - well redefined the usury laws so it is no longer cost effective to offer PDLs.

 

While that's probably a good idea, it won't solve the fundamental problem of some poor SOB without two nickels to rub together who needs $250 for car repairs.  9 times out of 10 only one of two things will happen:

 

1.   PayDay Loan Company will find a way to circumvent the rules; or

2.  The guy who needs $250 will burglarize your house.

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1 hour ago, PotO said:

 And that, my friend, is what distinguishes you (us) from knuckle draggers.  Anybody can make mistakes, but the key is learning from them.  

 

In addition to controlling our bowel habits, we also control our spending.

 

When the math gets tough, we remember that God invented math apps.

 

PayDay loans?  Unfortunately we can't outlaw stupid.  

Thank you for the kind words. 

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14 hours ago, PotO said:

 

While that's probably a good idea, it won't solve the fundamental problem of some poor SOB without two nickels to rub together who needs $250 for car repairs.  9 times out of 10 only one of two things will happen:

 

1.   PayDay Loan Company will find a way to circumvent the rules; or

2.  The guy who needs $250 will burglarize your house.

      2a. [heh get it? 2A? heheh] He'll need about $10,000 or more for hospital bills after homeowner plugs a couple slugs into burglar

 

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Nothing new.

 

I was always paid every 2 weeks from 1971 until I retired.  OTOH, my dad was paid once a month. At least during the late 50's until I left home. He worked for the state's dept. of public health.

 

I recall getting paid every week at summer jobs circa 1964. And more than once a day as a kid mowing lawns or shoveling snow.

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On the issue of bi-weekly (26 checks per year) pay cycle, if anything I find that helpful. A lot of my co-workers and others basically budget on twice a month pay, paying 1/2 "bills" from each check and either getting "ahead" on every bill by some point in year and/or having 2 "extra" checks and avoiding debt and getting behind on anything. 

 

I worked a lot of restaurant and retail type jobs that paid weekly when I was younger and then sort of skipped any traditional "professional" employment. So that was the norm for me. Then when I started running my own payroll I have always paid myself monthly. 

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