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People of all income levels use payday loans
#11
I think that is what is interesting about payday loans. Most people think that only poor people use payday loans but it seems like non-poor people use them too. For those people, it is their choice to use an expensive forum of credit.
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#12
(01-01-2018, 06:30 PM)Michael Puttman Wrote: I think that is what is interesting about payday loans. Most people think that only poor people use payday loans but it seems like non-poor people use them too. For those people, it is their choice to use an expensive forum of credit.

That's a good point. You would think someone with a higher income would have more options for where to get their money. I'm sure they do, in fact, but they tend to take a lot longer to go through. My understanding is that the payday loans are quick, no-questions-asked (or at least very-few-questions-asked) loans that you can get in a hurry to cover unexpected costs.
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#13
When you make a lot of money you can afford to make mistakes. Like paying too much for something
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#14
yes, its quite possible to happen. Whatever would be your income like it could be on a six figure still it varies on the lifestyle you lived and to be live with. Income is always after the lifestyle, it means that the more income you make the more your lifestyle upgrade, as always. For some cases, if you have big family's, many children's, relatives living with you, you have car amortization, house rentals, loans, investment and any other unexpected expenses along the way especially you don't know how to manage your income etc., in the end you will come to point of having a payday loans of $300 without thinking of the huge rate just to sustain your needs.
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#15
These days with this economy, I'm not surprised to know that people who earn a lot of money also can use some financial assistance at one time or another. Since they make 100K a year, they probably have all of the trappings that-that kind of money can buy, like a big house, a couple of cars, kids probably in private school, and because of all of those expenses, might come up a little short of money every now and then. You never know what someone is going through financially, even if they seem to be financially well off.
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#16
I do agree that a person with a six-digit income would or can still require a loan for at least $300. Not just because they're so rich that they can't do what a normal people can do, it's their life and it's definitely their money. It's just so unbelievable because of the reason that he's rich but if you look at the other perspective, he's still a human doing human things.
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#17
(01-01-2018, 02:26 PM)Heart Wrote: Sometimes people with those large incomes live their lives as if they will never run out of money that sometimes they spend money beyond their capacity and ends up availing some loans because they knew they have sure money coming and they can totally  pay for it.

@Heart I have a friend who is actually behaving in such way, I have tried giving him advice as a good friend on several occasions but it all seems to be falling on deaf ears. This young formed it as a habit of spending money like he is about to die and before you know it, he will be out of cash and even have to borrow to sustain himself till his next payday. 

I have actually lend him cash twice, although he does pay but it's not what I desire for him as friend. The problem is that he doesn't want to learn and it's probably because he is on a fat salary pay. So he sees it fit to be extravagant without looking at the future should something happen to his job.

Getting a loan is a personal decision and I believe that everyone is entitled to taking a loan no matter how rich such is. There might be a reason behind taking such loan, it may be for security purposes in terms of handling a huge project. Out of security purposes, one might go for a loan to execute such projects in order to mask the eyes of the public that he or she is credit worthy to afford carrying out such project with his/her personal fund. 

My father actually did this with one school hostel he wanted to build. It's not that he doesn't have the cash to execute the housing project but he chose to go for loan and mask his credit worthiness from the eyes of the envious public.
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#18
You're right by saying that people that earn as huge as 100, 000 dollars should not be taking such payday loans, but I think it is down to lack of financial intelligence. The truth is that those ones are not worried about saving and are just based on spending as they like since they could afford the money to repay loans, if they wish to borrow. Saving is a virtue that not everyone have at the moment.

(01-02-2018, 05:34 AM)gelotologist Wrote: I do agree that a person with a six-digit income would or can still require a loan for at least $300. Not just because they're so rich that they can't do what a normal people can do, it's their life and it's definitely their money. It's just so unbelievable because of the reason that he's rich but if you look at the other perspective, he's still a human doing human things.

I would have to disagree with you that spending unnecessary is a human thing for humans have been given the power to reason and make rational decisions when matters such as spending and savings are involved. I always believe that I can spend as I like and still make more tomorrow not until I started making efforts in reading financial literacy books that changed my life for the better. So, sorry to disagree, it's just lack of planning that causes that impulse spending on their part.

(01-02-2018, 02:33 AM)ErlyRisr Wrote: These days with this economy, I'm not surprised to know that people who earn a lot of money also can use some financial assistance at one time or another. Since they make 100K a year, they probably have all of the trappings that-that kind of money can buy, like a big house, a couple of cars, kids probably in private school, and because of all of those expenses, might come up a little short of money every now and then. You never know what someone is going through financially, even if they seem to be financially well off.

Well, if we are to consider the way the economy is in different countries of the world, I would have to say it is because many big earners have given up on the saving culture that we have been known for. Also, when one says that it feels okay collecting payday loans, there is need to consider the huge interest that is added to the actual loan and then take a decision if taking such loan is actually worth it at the end.
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#19
I think cirucumstances would have to be very dire for anyone making a decent income to even consider a payday loan. They are far from the ideal way to borrow money. Most people who have high incomes have assets like homes and they can always get a low interest home equity loan. It wouldn't make sense to get a payday loan.
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#20
(01-01-2018, 02:26 PM)Heart Wrote: Sometimes people with those large incomes live their lives as if they will never run out of money that sometimes they spend money beyond their capacity and ends up availing some loans because they knew they have sure money coming and they can totally  pay for it.

From observation and research, it's obvious that those  who are high salaries earners spend more than the average earners. This is probably because of the the reason you already mentioned, since they believe that they can afford such expenses, they certainly won't care about the cost or its implications.

Taking any kind of payday loans definitely don't scare them because they already believe with the amount they earn as income would clear such and still have surplus. I have a friend who behaves in such manner, he works for Mobil oil company and he gets a hafty salary so he behaves anyhow.
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