[Figlio di Moros]

That's approximately 400% annualized, mind you. The interest is 15% ($15 fee per $100 lent out) per pay period.

I'm sorry, but isn't the interest on payday loans closer to 30%?

[Dr House]

Depends on the issuer and where you are, I think. I'm giving you the number based on the going rate for payday loans in Seattle.

[jimjam]

credit card companies refer to those who pay each month on time as "deadbeats". somehow that seems an appropriate indication of the preditory ass backwards times we are in. i read where the credit card boys are all in a tizzie about protecting their "revenue streams". i have paid my card off each month for years and have never paid a cent in interest. if they start charging interest from the second a purchase is made, as they have signaled, i will simply revert to cash except for things such as rental cars. simple. after all, i must protect my "revenue stream" .

[Huntster]

The current economic crisis is in it's infancy. By the time it's over, those who can't responsibly manage credit will not get credit, and those who can will.

That's only if government doesn't fuck it up some more. I'm sure government would like to try (that's partially why we're in the sinking boat we're in), but I suspect that in a couple of years, government will be so deep in thick, shit soup that they won't have much ability to fuck things up much more.

For example, the credit unions here in Alaska are just fine, and will continue to be fine. They were not invested in risky mortgage backed securities bought in bundles. They make reasoned, local loans and hold them. They're doing just fine.

Lending to people who were poor credit risks is a big part of why we're here. That practice, eventually, will be reformed.