Like those that buy an expensive European car then can't afford repairs. They end up with snap finance and a 300% interest rate.
Predatory 'Lending' (Leasing)
- Thread starter ctechbob
- Start date
I'm here for the Predatory Harboring Fright Generators. Halloween Scary!
AZjeff
$50 Site Donor 2023
Know what "lease to own" means?
JTK
$100 Site Donor 2025
Can't afford a brake job? Lease one!
If only these poor folks lived like, or took the advice of our BITOG financial advisors.
If only these poor folks lived like, or took the advice of our BITOG financial advisors.
You cant protect the human race from itself. The problem with what people call predatory lending then puts politicians in power over what you can do. This limits the choices of responsible people. It's a tough call.
I would not be where I am today if not for a no-doc mortgage back in 2005. "freshly" divorced, newly married, my new wife and I decided to move to a huge (to us) brand new 5br home in one of SC's best school districts. Her small home on Long Island sold for almost double what we would pay in SC.
IN the meantime to not disturb my first marriage kids life I gave my X the house and finished paying off the mortgage for her. I also maintained the home, including a new roof I was planning and paid complete child support and paying my soon to graduates daughter tuition across the country in CA. I kept a business investment. On a phone call my kids flew down at anytime to spend time with us in their own bedrooms in our new home where they would eventually move once they finished school.
Long story short, we did this with no jobs in place in our new state but smart enough to have the "reserves" we would need to buy time until we got settled. All we did was shop and furnish the new home for 4 months and then got down to getting jobs in the same industry we were in. Being our reputations where good we knew this would not be a problem.
In today's world this can no longer be done to the best of my knowledge. The flexibility has been taken away from people who can plan intelligently and get at the time what was called predatory lending when for decades a large bank was able to make these No doc loans to tens of thousands of responsible people, all of a sudden its taken away.
I would not be where I am today if not for a no-doc mortgage back in 2005. "freshly" divorced, newly married, my new wife and I decided to move to a huge (to us) brand new 5br home in one of SC's best school districts. Her small home on Long Island sold for almost double what we would pay in SC.
IN the meantime to not disturb my first marriage kids life I gave my X the house and finished paying off the mortgage for her. I also maintained the home, including a new roof I was planning and paid complete child support and paying my soon to graduates daughter tuition across the country in CA. I kept a business investment. On a phone call my kids flew down at anytime to spend time with us in their own bedrooms in our new home where they would eventually move once they finished school.
Long story short, we did this with no jobs in place in our new state but smart enough to have the "reserves" we would need to buy time until we got settled. All we did was shop and furnish the new home for 4 months and then got down to getting jobs in the same industry we were in. Being our reputations where good we knew this would not be a problem.
In today's world this can no longer be done to the best of my knowledge. The flexibility has been taken away from people who can plan intelligently and get at the time what was called predatory lending when for decades a large bank was able to make these No doc loans to tens of thousands of responsible people, all of a sudden its taken away.
A little over 50 years ago I was looking at buying a new VW Rabbit. The dealer on the east side of Portland, OR would loan about $ 3,000 with 12% interest over three years. In other words, 36% interest on the original loan amount spread over three years. It comes out far higher than 12% interest on the declining balance. I bought one at the downtown dealer (you could go to downtown Portland back then) with a three year loan at 12% simple interest. Most people do not understand finance and cannot tell the difference between the two loans.
