Comments on: Financial Fright Night: 13 Loans That Scare Me To Death

By: Free Stock Trades, Bonus Money, and Discounts

Free Stock Trades, Bonus Money, and Discounts — Sun, 01 Nov 2009 04:44:51 +0000

[...] Financial Fright Night: 13 Loans That Scare Me To Death. Great tips on which types of loans to avoid. [...]

By: Angelin Parker

Angelin Parker — Sat, 31 Oct 2009 13:32:08 +0000

Hi,

I agree with you that in most cases a loan is not in the favor of the borrower but sometimes you are in extreme need of cash for any type of emergency. It happened to me couple of times before and my best choice was pink slip loan through City Loan — it worked best for me.

Thanks

Angelin

By: Matt

Matt — Fri, 30 Oct 2009 16:07:47 +0000

I love this post.

I think the scariest loan (by far) is the co-signed loan. Putting your financial well being in somebody elses hands?

To take a friend to a bar and say, “Hey… drinks on me” is one thing.

But to go to a Car Dealership and do the same? Not THAT is scary!

By: Pawnonomics

Pawnonomics — Wed, 28 Oct 2009 15:37:58 +0000

Sounds like your wife received this loan from a CROOK. Any pawnbroker worth his salt would have happily paid off the loan and returned the items.

The good news is that for every horror story such as yours, there are thousands of positive ones.

By: Ron

Ron — Wed, 28 Oct 2009 14:16:48 +0000

Well, a couple of things.
1. My experience with pawn shops is very limited and all of it is bad. My wife secured a loan against a classic Martin guitar, a .25 cal handgun, and some jewelry that her mother left her in her will when we were dirt poor and I was stuck in a crappy car 400 miles from home with zero cash. When we went back to get our items 30 days later, the shop owner said “too bad, they’re mine now, you were one day late coming back to get them and a deal is a deal.”
2. When we DID go to get that cash, the owner lent us less than 10% of the value — since we were young, naive, and desperate, we agreed. Looking back on it 15 years later, I feel we were rooked .. but that happens when you’re young, naive, and desperate, or maybe just desperate!

By: No Such Thing As Good Debt? | The Wisdom Journal

No Such Thing As Good Debt? | The Wisdom Journal — Wed, 28 Oct 2009 10:27:45 +0000

[...] I wrote an article about 13 loans that scare me to death, but the truth is, almost all debt scares me to some degree. Now I know what you’re thinking – [...]

By: Credit Card Chaser

Credit Card Chaser — Wed, 28 Oct 2009 03:06:24 +0000

I couldn’t disagree with you more. Borrowing money to buy an appreciating asset (in this case an education that will enormously improve one’s lifetime earning power) is almost always a great thing.

By: Pawnonomics

Pawnonomics — Tue, 27 Oct 2009 16:54:08 +0000

Ron, I do not feel you’re giving pawnshop loans a fair shake. Pawnbroking is the oldest form of consumer credit and hasn’t changed much in thousands of years. This is not by accident. Pawn loans are the most civilized and reasonably priced source of short-term consumer credit. Many independent studies have shown this.

But the biggest difference between pawnshop credit and those that you list in your post is that a pawn loan is the only form of consumer credit where the borrower actually has a choice of whether to repay the loan or not, and if choosing not to, the only recourse is the loss of the personal property pledged. No lawsuits, no bad credit reporting, and no negative consequences. Also, contrary to your belief and any television shows, a pawnbroker’s biggest goal is to loan the customers as much as they require to cover their short-term situation. It’s what we do.

Steve Krupnik, 30 year pawnbroker and author of Pawnonomics

By: Patrick

Patrick — Tue, 27 Oct 2009 11:47:38 +0000

Ever since I was denied trading on margin via my online brokerage account, I decided to take out payday loans to buy stocks. You really have to hit a home run to make it work though, so I stick with the penny stocks and the hot tips I get in my e-mail every day… usually about oil derivatives and other stocks in the energy sector. I jest, of course!

You hit the nail on the head here, and most of these loans can be avoided by simply living within your means and not giving on to consumerism.

By: Ron

Ron — Tue, 27 Oct 2009 11:20:00 +0000

I certainly want to stay far away from your lender! I wasn’t made any promises of wealth and prosperity and I willingly signed all the papers for my $50,000 in student loans. I actually pursued the lenders, none of them pursued me.