I'm kind of embarrassed to even say this

[Jainarayan]

But I kind of have to get it off my chest. I took an internet short term loan. We've gotten hit with some expenses... truck maintenance and repair, gas and electric company adjusted monthly budget amount, just general day-to-day financial bullcrap. All the bills are paid for the month so far, but I don't get paid again until the 28th, and I've got less than $300 to my name until then. I never, ever thought I'd resort to this. It's not such a bad deal if you pay the loan back quickly, which I plan to do. It's just a bridge loan and cushion. The catch is that there is a pre-payment penalty. I'll just have to suck it up. It's one of those Native American-owned lending companies. The people were very nice, but I just feel like I've sunk so low in having to go applying for an internet loan. On the other hand, it was a flash of inspiration that I thought "well hey, let me try it". On a positive note maybe it was one of the gods giving me the inspiration.

 

[von bek]

The catch is that there is a pre-payment penalty. I'll just have to suck it up.

Please excuse my ignorance; but, what does "pre-payment penalty" mean?

 

[Jainarayan]

Please excuse my ignorance; but, what does "pre-payment penalty" mean?

It means they make money one way or another.

Seriously (who's joking?), it means that even if you pay the loan even before the first payment is due, which I plan to do, you have to pay a fee, usually some portion of the monthly finance charge.

 

[von bek]

It means they make money one way or another.

Seriously (who's joking?), it means that even if you pay the loan even before the first payment is due, which I plan to do, you have to pay a fee, usually some portion of the monthly finance charge.

Gotcha. That is what I thought it might mean, just had never heard the phrase. I know all too well about debt and money problems. I wish you well.

 

[Iti oj]

I'm sorry Thorbjorn, but I'm not to worried, you'll be fine !

 

[Jainarayan]

Gotcha. That is what I thought it might mean, just had never heard the phrase. I know all too well about debt and money problems. I wish you well.

Thanks. I have gotten by on less than $300 for two week before, but I don't like flying by the seat of my pants. Especially as my truck is getting older and I need to keep on top of it. I hope I don't need to use this money, but at least it's there.

I was reading about complaints on this and other lending companies. People were complaining about the terms of the loans. But it seems they didn't read the terms of the agreement before they signed. They were shocked at how much they wound up paying over the term of the loan. How do you take out a loan and not know how much it's going to finally cost? I almost puked when I saw how much it would cost me if I kept the loan for its full term. Everything these people complained about was in the terms I read, and what I asked the representative on the phone. I said pointedly "I am getting this loan only as a bridge loan until I get paid, and as a cushion; can I pay the loan in full, just what I am borrowing, even before the first payment is due?" The answer I got was "yes, absolutely".

 

[Jainarayan]

I'm sorry Thorbjorn, but I'm not to worried, you'll be fine !

Thanks... I know things will work out. They always do, for which I am always thankful.

 

[Nada]

Money comes and money goes.You will be just fine.Just worry about today.

 

[Revoltingest]

Pre-payment penalties are common with loans where the lender doesn't charge their full cost+profit at closing. I have these in my commercial loans for large amounts (large for me, anyway).
Don't be embarrassed about borrowing money this way....I'm a deadbeat too, just on a larger scale. We all should do what it takes to meet our obligations, eh?

 

[Nada]

Pre-payment penalties are common with loans where the lender doesn't charge their full cost+profit at closing. I have these in my commercial loans for large amounts (large for me, anyway).
Don't be embarrassed about borrowing money this way....I'm a deadbeat too, just on a larger scale. We all should do what it takes to meet our obligations, eh?

Except sell drugs and prostitution..

 

[Revoltingest]

Except sell drugs and prostitution..

Yeah....there are many things I won't do either. But I've sold some personal treasures to avoid foreclosure. I even sold my hot tub! Now the only I soak outside is when it's raining.

 

[Jainarayan]

Except sell drugs and prostitution..

I would get my blond wig, slingbacks and and gold spandex tights and find a corner in Long Branch or Asbury Park but the weather sucks. Besides all the good corners are either already taken, or have townhouses!

 

[Nada]

I would get my blond wig, slingbacks and and gold spandex tights and find a corner in Long Branch or Asbury Park but the weather sucks. Besides all the good corners are either already taken, or have townhouses!

Lol..

 

[Sees]

A good time for some work, reflection, meditation on/with Fehu

There is always a catch though, when our money/finances turn back around or get a jump start.

 

[Paradox22]

. But it seems they didn't read the terms of the agreement before they signed. They were shocked at how much they wound up paying over the term of the loan. How do you take out a loan and not know how much it's going to finally cost?

It's called desperation. When you think you have no other options, the terms of the agreement are not foremost on your mind. Especially if you think you can pay it off early.

 

[von bek]

Don't be embarrassed about borrowing money this way....I'm a deadbeat too, just on a larger scale. We all should do what it takes to meet our obligations, eh?

I agree with this. Financial woes are stressful enough on their own. There is no reason to pour the fuel of guilt and embarrassment on the fire. Money troubles say nothing about your character.

 

[Jainarayan]

It's called desperation. When you think you have no other options, the terms of the agreement are not foremost on your mind. Especially if you think you can pay it off early.

Once the money is deposited in my checking account, it's getting transferred to my savings account, and there it will sit until I pay it back. It's just going to be there for peace of mind. When I get paid in two weeks, back it goes to the lender. "Act in haste, repent at leisure" my parents used to say. In a way I feel sorry for people, but in a way I don't. People don't like to take responsibility for their own actions. Sure, the interest rate is usurious, but the lender is counting on people to not read the terms. I've made mistakes, I do make mistakes and I'll continue to make mistakes, but I have never nor will I ever blame anyone but myself. I'm not perfect or a saint, it's just how I feel. I have no one to blame except myself. That's why I pray for protection... from my own stupidity. I read the terms over and over, I asked the questions, and I'm still skittish if I did the right thing. If I effed up somewhere, well, I effed up. I won't like it, but ... I'll curse myself out later.

 

[Jainarayan]

A good time for some work, reflection, meditation on/with Fehu

Yeah, good idea!

There is always a catch though, when our money/finances turn back around or get a jump start.

Never a free lunch.

 

[ShivaFan]

As far as the loan, I think it will be ok.

Regarding the $300 dollars, if you have paid your other bills than I don't see a problem. Try going to the open market and buy vegetables to eat, some oil, milk. I have plenty of money but often spend less than $300 dollars - to me even with a family it would buy a lot of food. Not sure about your other bills. But when it comes to food, $300 can feed easily an entire month if you eat a Hindu diet.

 

[Vinayaka]

Don't you guys in the US have access to lines of credit? We keep one at no cost for emergency purposes. I've used it once, and the interest is 1% above prime lending. I only found out about it once when I threatened to switch banks.