Beware of Loan Companys (1 Viewer)

[Joker]

Ok, this happened today and totally blew me away. This is ridiculous. I am a loan officer at a credit union and one of our members came in today to see if he could refinance the car he just bought. So he brought me the papers on it. He had tried to get it financed thru a bank and then the dealerships and even another credit union but they wouldnt do it because his credit was horrible.

And he was in a bad need for a vehicle so he went to one of those loan places in a shopping center and they financed him a brand new Toyota truck for $27,000. Only problem is, they did it for 37.5% interest. Thats right, I said 37.5%!!!! His monthly payment is $1001.00 for the next 5 years. At the end of the loan he winds up paying a little over $60,000 for his $27,000 truck. More than double. Is that not insane.

I asked him if he had ever heard of a bike b/c I would have done that before I signed those papers. Unfortunately, there wasnt anything I could do for him, but I sure wish I could have. So beware and make sure you know what your doing when you do something like that. I want to feel bad for him, but yet again I dont b/c it takes a complete idiot to sign that but its sad. So anyways, I just thought I would share that with you guys.

 

[yoda]

No worse than the Credit Card companies, Justin... They are loving this time of year, as the XMas spending starts to show up on the bills, and folks are dealing with overdraft fees, new minimum payments and things that, if slipped up on, will allow the CC companies to smack them with new, outrageous interest rates.

I've been looking for property in Vegas for a while now, and my broker tells me to just wait- the banks will be trying to dump all the properties that they have to foreclose upon due to folks buying overpriced houses at elevated interest rates... Interesting business, that money industry..

 

[Joker]

Martin, you dont even want to get me started on credit card companys. There the biggest crooks of all.

 

[Kelly Andersen]

Martin, you dont even want to get me started on credit card companys. There the biggest crooks of all.

Amen Brother!!!!!

 

[mick]

Martin, you dont even want to get me started on credit card companys. There the biggest crooks of all.

except when you pay your monthly balance........monthly.
although my small business gets wacked hard for credit card processing fees,
my miles credit card works perfectly each year - flight reservations are quick
and easy. when i add up my processing fees - i figure my flights are basically
a two for price of one deal. not bad.

 

[vegasnitro]

I've been looking for property in Vegas for a while now, and my broker tells me to just wait- the banks will be trying to dump all the properties that they have to foreclose upon due to folks buying overpriced houses at elevated interest rates... Interesting business, that money industry..

That is sound advice, we are projected to have property values decrease 12-14% over the next 18 months. I too am waiting for some of these people who bought over-priced homes on gimmick loans (the ARMs are going to be ballooning here shortly) to have to sell out. Only then will I buy another house here in Vegas.

 

[Mike]

Its not the credit card company fault that people cant manage their money and have to have everything the Jones have.

 

[Paul]

Its not the credit card company fault that people cant manage their money and have to have everything the Jones have.

Bingo! If you don't have the money don't spend it! I have never carried a credit card balance in my life. People should be saving money each month, not going further into debt.

 

["Dr. Dirt"]

Re: Beware of Loan Company's

Don't ask a lender about interest - ask an old farmer.
He'll tell it this way:
Thems that understand interest, earns it -- Thems that don't, pays it!

Other than my home, I'll never go into debt-even for an investment. I"ve been selling land for over 30 years and I've seen cycles that wipe out the wealthy as well as the common man. We're right in the thick of one now!

 

[Joker]

Its not the credit card company fault that people cant manage their money and have to have everything the Jones have.

Thats true Mike, and most people arent that good with money. It blows me away some of the things we hear here at the credit union. One of the biggest problems I see is that the credit card companys start sending credit cards to people when they are still in high school and they go nuts with them. I'm not saying they shouldnt know better, but there young and dumb. I cant tell you how many 19 to 25, 26 year old I have come in here and when I pull there credit report they owe a credit card company over $20k. Unless you hit the lotto or something, you are never going to pay that back the way credit card companies work.

 

[ricko999™]

Car loan shark have been in business for years preying on bad credit or mis-informed people.
The next wave of sharks started showing up in the housing mortgage sector. Mortgage Companies now writing No down, interest only ARM's, 40year, 45 year loans....to over extended familes, with no little or no equity or understanding of declining values of their property.

 

[T.J.]

Thats true Mike, and most people arent that good with money. It blows me away some of the things we hear here at the credit union. One of the biggest problems I see is that the credit card companys start sending credit cards to people when they are still in high school and they go nuts with them. I'm not saying they shouldnt know better, but there young and dumb. I cant tell you how many 19 to 25, 26 year old I have come in here and when I pull there credit report they owe a credit card company over $20k. Unless you hit the lotto or something, you are never going to pay that back the way credit card companies work.

That is exactly what happened to my brother in law! Not a week passed when he turned 18 and he had a credit card that was sent to him by a credit card company. We told him (wife and I) to be VERY careful with it and to put it away for some time, pay the balance outright so it will report good on your credit and to not use it unless you have an emergency. Needless to say, some time passed and we were all out at dinner and he offers to pick up the tab, so he pulls out his credit card to pay and my wife notices that its a different card! He tells us he has 5 diffferent cards now and the other 4 were at there limit!
He is 26 now and owns a very successful company that he takes home over120k a year, but his credit is suffering because of the credit cards he had 7 years ago and all the charges he owed for years. Luckily he has the financial ability to pay them where as most people his age would be "haunted" for life because of those mistakes.

 

[Nitrohaulic]

Reminds me of a conversation I had with a teenage waitress in a Waffle House a couple years ago. She was telling friends about the new Mustang her and her husband were financing. I overheard her telling how much the payments would be over six years! I punched it up on my calculator and showed her that they would be paying over $30,000 for something that would be worth a lot less than $10,000 when they were done.

Her reply? "But, it's a nice car!"

It's like Dave Ramsey says about buying a house over your head. He wants to see you own the house, not the house own you.

You might as well say that pickup owns him for the next several years.

LOL, the only reason we haven't "moved up" to the "new used" 1999 Caravan for $3,000 (with 65,000 miles) that's available to us is that I so far can't convince her that now's the time to part with the "old used" 1995 Caravan (that we also bought for $3,000 with about the same mileage five years ago, now has about 130,000) while we can still get $1,500-2,000 for it.

Dave likes to read quotes out of a book titled "The Millionaire Nextdoor" (that seems to be sold out whenever I get into a mall) now and then. Some guy went around collecting statistics on what wealthy folks REALLY live like. Seems like I remember the average net worth of those he surveyed was at least $10 million.

One statistic I do remember is that the average millionaire drives a car that's at least two years old or older. They let someone else take the new car hit. Like Dave likes to say, "Poor people drive new cars. Rich people drive used cars."

Also remember another story out of the book. Some couple was worth around $30 million. The woman was doing her laundry (!) one day, and the little plastic catch that holds the dryer door shut broke. She figured out to cut a broom stick to just the right length so's she could wedge it into a corner with the other end in the handle. Said she got another ten years out of the dryer. How many "normal" people would have had to have a new dryer?

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