« Jumping the Gun | Main | Quote of the day »

Tuesday, August 22, 2006

Comments

Heh... off topic, but whenever I hear (or use) the term "Caveat Emptor" I'm reminded of this rumination that I saw a few years ago:

All right, who do I complain to?
Some guy sold me a ticket to the "Cave at Emptor", but it turns out
there's no such place!

Ah, I do so love word play. Like my all-time favorite fake news headline from The Onion:

Jurisprudence Fetishist Gets Off on a Technicality

Hey, I said it was off-topic!

You know a much younger Chris had an overdraft protection account hooked up to his US Bank account. It was for like $200 and helped keep a young Chris out of trouble when he wrote a check for a pizza he couldn't afford. Since then, Chris has learned that by keeping a couple hundred bucks in his saving account (and replenishing it when he dips into it) he doesn't have the need for such a credit account. AND they pay me money to do it! How about that!

Seriously though, banks and credit unions are a much preferable option for this type of stuff. They offer MUCH better rates and terms. I dunno. I'm for it.

Yeah, I guess that's true. 120% APR (actual rate at US Bank) is better than 400%+ APR like at some payday loan stores.

But it's an awfully expensive way to manage your finances in any event.

And to be fair, normalizing short-term loan rates to annual percentage rates doesn't make a lot of sense. Payday loans aren't competing with car loans or home mortgages (though they might compete with credit card cash advances) so comparing annual rates is a bit misleading.

But you actually would in most cases be better off taking a cash advance from your credit card for short-term cash needs, than getting a payday loan. Assuming you had a credit card in the first place, of course.

The comments to this entry are closed.

October 2010

Sun Mon Tue Wed Thu Fri Sat
          1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31            

SiteMeter

Like This?

Tips Welcome!

Tip Jar