Personally I think it’s predatory and preys precisely on the folks who are least able to borrow in traditional ways. Use with caution if at all.
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Exactly.
The goal for a company like Payfully is to achieve lock-in, this is the same with all micro-loans…
They seem nice and helpful, but once your are in, it is very hard to get out.
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This is the textbook definition of predatory lending! If they charge $30 for a $1000 one month loan, that is a 3% monthly interest rate. This translates to a 42.6% annual rate! A complete ripoff designed to take advantage of hosts who don’t know any better.
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@keith, @Chris and @cooperjto for your insights on this. You articulated what I could not. I know @Daniela_Payfully is no doubt just doing her job, but I saw red flags in her explanation.
Smooth. And as @Chris said - it will not lead to high prices. Hell, I put on a 60K extension on my house and it did not lead to higher prices. If anything I have had to lower them because of the market saturation. Post after post after post here is complaining about lack of bookings. Now is not the time to borrow against future earnings.
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I completely agree with everything you and everyone else thay thinks this is a bad idea has been saying. It is a very poor idea, but if you are in a ER situation, I think this is the best of the worst choices.
Hypothetical example based on something that we just went thriugh. Your cooktop decided to stop working, it is a fancy German brand and cut into the granite, so replacing the already $3k cooktop now requires $2k of granite work. This has to be done ASAP bc your busy season starts in 3weeks and you are booked solid for 3 months. ABB (agree with it or not) is 50% of your icome and you dont have $5k sitting around to pay for this and a traditional loan/refi will not happen in 3weeks, and you dont want to open a new credit card… What would you do? How would you borrow the money? In this situation I think Payfully is the least bad choice. (FTR we did have the money in our savings and we were able to make the repairs quickly and I love my new kitchen)
My point is some people have no choice and already know this is a bad idea. I dont feel that repeatedly telling them what a bad idea short term loans are is helping the situation.
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Thank you @azreala. That’s a good point to add. Since we are repeating ourselves I will just lock the thread.
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