Payday Pundit » debt

Credit is not free money.

Payday Pundit — Tue, 30 Sep 2008 15:42:04 +0000

Eventually you have to pay back what you borrow and most of the time paying back includes a fee for the privilege of spending someone else’s money, be it an upfront fee like a payday loan or an interest based fee like a credit card. In the last few years it seems like consumers and banks alike have forgotten this, leaving us in the situation we are now.

Now, after giving people more free credit than they ever needed (this pundit still gets 4 card offers a week), the credit card companies are reminding their clients to “use it responsibly“…a little to late, guys.

Credit Card Companies Push Customers into Deeper Debt

Payday Pundit — Thu, 25 Sep 2008 16:07:28 +0000

An interesting piece on Customer Service Agents at credit card companies is up on CNN.com right now.

These former CSA’s allege that they were told to push people to take out more credit than they needed and rushed through the details.

CFSA member companies are required to post in large print and explain to customers the terms of each loan they make. Why aren’t credit card companies held to more stringent measures? Afterall, credit history is becoming more and more important in the US.

Finally, sound advice

Payday Pundit — Tue, 26 Aug 2008 15:21:19 +0000

Don’t buy things you can’t afford! Don’t take out a payday loan if you can’t pay it back!

It’s not rocket science.

The benefits of credit

Payday Pundit — Fri, 18 Apr 2008 13:36:00 +0000

Kurt Davis, a law student at the University of Virginia, has a profound column in the Virginia Law Weekly. He essentially argues that there is wise debt and bad debt, good consumer choices and bad ones. He opposes regulation, but encourages financial literacy and a balance between savings and debt.

While Mr. Davis’s piece is mostly about the housing crisis, some of what he says has relevance to the payday lending debate. From the piece:

“While bad times may increase urgency and force quick reaction, paternalism should not be the medicinal remedy for any situation. In its best-case scenario, it would stop some Americans from unwittingly entering into situations that will hurt them in the end. At the same time, it will severely limit those Americans who wittingly play the American market to their advantage through smart investments.”

The Payday Pundit agrees.