What do you guys think about investing in Pawn shop or PayDay Loan companies?

Discussion in 'Stocks' started by gymratnyc, Apr 21, 2008.

  1. What do you guys think about investing in Pawn shop or PayDay Loan companies?

    The economies tanking and these companies are doing more business.
     
  2. such as??
     
  3. hughb

    hughb

    There's an effort in southern California to get payday loan places away from military bases. They are taking advantage of young and dumb marines and sailors and ruining their bank accounts.
     
  4. too many politicians with their guns pointed at payday loan places.
     
  5. 9999

    9999

    http://en.wikipedia.org/wiki/Payday_loan

    HOLY CRAP!!
    The article says the APR goes typically from 390% to 780%. I don't even think some "godfellas" in Palermo charge that much. Can someone confirm these #?
     
  6. Symptomatic of an extravagant middle class whose finance streams are drying up.

    Not good.
     
  7. u21c3f6

    u21c3f6

    In the Orlando area you would probably be too late. These companies (especially Amscot) have been springing up all over for the last two years.

    As far as the %, it depends how you calculate it. To get those very high #'s you have to include the fees, it is not just the interest. Of course the end result is no matter how you calaculate the %, it is a very expensive way to get a relatively small sum of money.

    Joe.
     
  8. PayDay - never. They are under pressure, and may face stiff legislation.

    Pawn shops - there are 1-2 chains. I saw them in an article earlier, but cannot remember their names... They may do well if the economy really goes under, also...
     
  9. It's a difficult business, you're usually dealing with a rough or down-and-out element, you have to be willing to get your hands dirty.

    Ask yourself if it's worth it to you.
     
  10. That is correct, HOWEVER, payday loans are not yearly terms. They only last two weeks and then you pay. Typically the fees is 10-15% of the loan. Loan amounts are up to $500.

    Most people that get a payday loan, never catches up, they are in the whole, everyweek.
     
    #10     Apr 22, 2008