Comments on: 35% Interest: The Curse of the Unsolicited Loan Offer http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/ personal finance that makes cents Thu, 20 Nov 2008 08:07:50 +0000 http://wordpress.org/?v=2.5.1 By: Phyl http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-99181 Phyl Wed, 03 Oct 2007 20:30:07 +0000 http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-99181 I feel for the same type of offer (26.4%) and I am still kicking myself and still paying for it today. The worst part about it is that I "invested" it with a friend who had a sure fire real estate investment plan that was going to repay me double within the year one, one fourth year 2,3,4 after that. Well I have seen a penny of the money and my friend is on to another get rich scheme. She hasn't never brought it up but to say that it's still her heart's desire. She was slick about it and I even signed a contract and everything. I saw how hard she worked at it and believed her truly, that was until her sister told me how she had went through the whole family and now she was working on friends. I chalked it up to be a naive. She's still my friend but I will never loan her another dime. I am now on my way to living debt free. I can do this. Please learn from me and opt out of everything and not cash the checks!! I feel for the same type of offer (26.4%) and I am still kicking myself and still paying for it today. The worst part about it is that I “invested” it with a friend who had a sure fire real estate investment plan that was going to repay me double within the year one, one fourth year 2,3,4 after that. Well I have seen a penny of the money and my friend is on to another get rich scheme. She hasn’t never brought it up but to say that it’s still her heart’s desire. She was slick about it and I even signed a contract and everything. I saw how hard she worked at it and believed her truly, that was until her sister told me how she had went through the whole family and now she was working on friends. I chalked it up to be a naive. She’s still my friend but I will never loan her another dime. I am now on my way to living debt free. I can do this. Please learn from me and opt out of everything and not cash the checks!!

]]> By: AllFinancialMatters » Blog Archive » A Late Weekly Roundup http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-9004 AllFinancialMatters » Blog Archive » A Late Weekly Roundup Wed, 27 Sep 2006 12:51:39 +0000 http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-9004 [...] J.D. blogs about the Dangers of 35% Interest. [...] [...] J.D. blogs about the Dangers of 35% Interest. [...]

]]> By: luneray http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8884 luneray Tue, 26 Sep 2006 03:53:20 +0000 http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8884 The word of the day is Usury. Most (if not all) states have usury laws; that is, a legal maximum interest rate. Sadly, these rules don't seem to apply to private lenders. Read more <a href="http://www.lectlaw.com/files/ban02.htm" rel="nofollow">here</a>. The word of the day is Usury.

Most (if not all) states have usury laws; that is, a legal maximum interest rate. Sadly, these rules don’t seem to apply to private lenders. Read more here.

]]> By: Emily H. http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8865 Emily H. Mon, 25 Sep 2006 23:21:43 +0000 http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8865 On one of the finance forums I lurk on, someone got one of those checks and deposited it, not realizing that it was actually a loan! On one of the finance forums I lurk on, someone got one of those checks and deposited it, not realizing that it was actually a loan!

]]> By: Jim http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8856 Jim Mon, 25 Sep 2006 21:14:13 +0000 http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8856 i think you have to compare this to a payday loan, which is about 35%. obviously someone would only use this $6k offer in an emergency and they have no other money. and if they had an emergency fund, they wouldn't need it. you can easily say save $200/month, but why then are there so many payday loan shops? i think you have to compare this to a payday loan, which is about 35%.

obviously someone would only use this $6k offer in an emergency and they have no other money. and if they had an emergency fund, they wouldn’t need it.
you can easily say save $200/month, but why then are there so many payday loan shops?

]]> By: Kira http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8831 Kira Mon, 25 Sep 2006 15:58:24 +0000 http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8831 He does call them and they reduce it 2% or so.. and then bump it back up again when he doesn't use the card. Since they are unwilling to work with him, he went and got a card from a different company at 7.9%. He does call them and they reduce it 2% or so.. and then bump it back up again when he doesn’t use the card. Since they are unwilling to work with him, he went and got a card from a different company at 7.9%.

]]> By: Susan http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8827 Susan Mon, 25 Sep 2006 14:16:45 +0000 http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8827 I have on several occasions used the 0% checks (with 3% fee, it comes out to about a 6% yearly rate) to float me until my next student loan payment, when my finances have been very tight. Because of the way they do the payment structure, I make sure the card in question has $0 balance, and then don't use it again until the check portion is paid off. For some reason, thankfully, the card that always sends me the checks isn't the same one that I use for groceries to rack up reward points. I wouldn't recommend this to anyone who isn't in college *and* aware of a large sum of money being deposited in their bank account on a particular date before the promotional rate expires. Kira: I've never had a credit card reduce my rate without being asked to, although they won't always do it when you ask. A higher limit quite possibly means more money for them... a lower rate doesn't. If your boyfriend's credit has improved significantly since he got the card, he should call them. I have on several occasions used the 0% checks (with 3% fee, it comes out to about a 6% yearly rate) to float me until my next student loan payment, when my finances have been very tight. Because of the way they do the payment structure, I make sure the card in question has $0 balance, and then don’t use it again until the check portion is paid off. For some reason, thankfully, the card that always sends me the checks isn’t the same one that I use for groceries to rack up reward points. I wouldn’t recommend this to anyone who isn’t in college *and* aware of a large sum of money being deposited in their bank account on a particular date before the promotional rate expires.

Kira: I’ve never had a credit card reduce my rate without being asked to, although they won’t always do it when you ask. A higher limit quite possibly means more money for them… a lower rate doesn’t. If your boyfriend’s credit has improved significantly since he got the card, he should call them.

]]> By: Kira http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8822 Kira Mon, 25 Sep 2006 13:10:15 +0000 http://www.getrichslowly.org/blog/2006/09/25/35-interest-the-curse-of-the-unsolicited-loan-offer/#comment-8822 My boyfriend always complains that one of the companies with which he has a credit card keeps sending him letters raising his credit limit, but never one lowering his interest rate, which is the actual reason he doesn't use the card (it's around 16%.) I imagine this is because most people just look at that increased credit line and see dollar signs, and don't bother to look at the interest rate details, especially in a case like this where it comes with such a nice big fat check. My boyfriend always complains that one of the companies with which he has a credit card keeps sending him letters raising his credit limit, but never one lowering his interest rate, which is the actual reason he doesn’t use the card (it’s around 16%.) I imagine this is because most people just look at that increased credit line and see dollar signs, and don’t bother to look at the interest rate details, especially in a case like this where it comes with such a nice big fat check.

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