Rise of instant loan machines sparks fears for low-income earners - Sensationalist Headlines

The emergence of instant cash loan machines across parts of New South Wales has sparked fears about low-income families being potentially caught in a debt trap. The machines, which look like ATMs, only require identification and bank details before users are approved for cash loans almost immediately. Financial counsellors have expressed concern about the devices, which they say appear to be popping up in low socio-economic areas. The instant loan machines, which appear to only exist in NSW, have emerged in parts of Wollongong, south-western Sydney, the Central Coast and Hunter regions. The company that runs the devices states on its website that its machines "have been strategically positioned in local shopping areas to make things easy". Loan amounts vary from $50 to $1,000, with limits increasing when users access the machine numerous times. People have one to three months to pay the loan back. Shop attendants at one tobacco store where a machine was located told the ABC the machines had proven popular, but noted a large proportion of users were from a low-income background. http://www.abc.net.au/news/2018-04-26/rise-of-instant-cash-loan-machines-in-disadvantaged-nsw-areas/9696134

Remember that the Bible says Jesus threw money lenders out of the Temple of Jerusalem, greed is one of the seven deadly sins, camel through the eye of a needle etc.

This is some real predatory shit.

Never take a loan out unless you already have the money to pay it off in fact, never take a loan out

Mortgage is basically a loan, and is generally a good idea if you're in a place where buying a house is a good idea.

loans and credits are deferred payments... they can be useful sometimes, if you need something now but know it may take a few months of saving to get (like a university degree, years in that case), just don't be stupid.

Payday loans are often so bad you'd usually get better interest rates from a mob loan shark. I'm surprised these aren't outlawed already in a place like the U.K. Nothing wrong with getting loans, just get them from a reputable credit union for a good reason. Staying the fuck away from small scale loans is a better idea

Two years ago I was in a student competition where five teams pitched an idea for several banking solutions, one of them being a digital wallet on your phone. The project was created by a very large bank here, and the teams pitched to its leadership board. Before that, we had several lectures throughout the two weeks that the project ran through, and one of them was from its CEO where he told us about this "great" idea of how you could put a location service into a digital wallet that knows your purchase profile, and could literally send you a push notification offering you a micro loan to buy a product in a store you're walking by. It was kind of creepy how excited he was by this idea, and I understood why, it would be a really effective way to get a lot of people into debt with the bank. And I think he really wanted one of the teams to use it, maybe that's even why our team won because we used gamification in our digital wallet (like if you tip your waiter and or split a bill with your friends you'd get points and you could unlock custom themes for the app and shit) Luckily when we asked the rest of the board about what they thought regarding that, they literally went "the fuck, no, that's completely ethically fucked and the regulators would never allow it"

It is just a case of only taking out what you're almost positive you will pay back based on what you're expected to having coming in. Payday loans are something nobody should touch with a fucking barge pole mind as their interest rates are incredibly predatory. Unless you get lucky and that company has to void most of their contracts because the government caught them being filthy cheats.

You shouldn't be floating your life on loans. Take out a loan for a car and a house, don't use your credit line for things you don't have the income to pay for. Loans can be predatory but most lenders are very fair to be honest.

No, are you kidding me? Loans are tools. You can take out loans to buy things that you need without going bankrupt in the meantime; i.e. a house, a college education, a car, etc. Then you can take the money that you still have access to in the meantime and reinvest it into your life. If it's a really sizeable chunk of money (i.e. the money you would have spent on a house), you can reinvest it into an account where it can grow safely without taking on meaningful risk.

This cannot be legal, what the fuck.

Hell, I was surprised to see we had one of those loan shops that also plastered "WE BUY GOLD!" on the windows. Doesn't seem fishy at all, nosiree...

Honestly payday loans and other predatory garbage should be illegal. Theres no justifiable reason to offer a loan woth 1,000% interest and 7 days to pay it back, unless youre trying to ruin people's lives for personal gain.

Oh, so nowhere unless you for some reason really want to own a home. Because buying a home is a massive scam for any other reason other than you personally want to own one.

Did I just transport into an alternate universe? Where buying a home is considered a scam?

You won't see much of your payments applying to equity for several years, you're tied to 'larger than rent' payments and annual property tax for at 20 years usually, oh and if you fuck it up due to financial hardship you're literally back at square one and loose everything at much greater odds than if you just had to move out of your rental. Losing a house you bought destroys your credit far more to boot due to the sheer sum of cash you're dealing with, so guess you're just over-all fucked there. Oh and here's the best part, guess what happens when you have to move for work, or a natural disaster happens? You don't just loose your home, you're still responsible for that loan, the bank doesn't give a shit. So yeah maybe you can sell your house for close to what you bought it for, if you happened to pick the right location, right time, noticed a trend, painted your self in goat's blood and prayed to Hades, oh and if you were handy enough to renovate the house in the right ways that boosted its value without costing you more than that value in the process. But that still means you're out money due to broker fees, etc. If you're lucky you brought in less than the same return that investing the money in index funds that you would have saved by renting would have provided, all with less work on your end. Owning a house is only a good investment if you want a house. It's a horrible investment for literally any other reason than you want to own a home and have the piece of minds perks that provides.

Why should people who legitimately need a quick loan or forward be punished because other people are fiscally irresponsible? As long as the terms are straightforward and no one is being coerced, then people should be free to make whatever agreement they want.

sooo what you're saying is, houses are fine if you want a house? i really don't know how something can be considered a scam unless you want to have that something. i wouldn't buy a house if i didn't want one, but i do because i want space for a family and a yard and those other things. no need to tear down everyone else just because you have preferences to other things. i think you are totally fine not wanting a house yourself, but you should probably pick better terms than "scam" to describe it, otherwise you're just kinda calling everyone who owns a house "sheeple" or the equivalent of that, and that's not really cool tbh.

Idk if you didn't read my previous post before that but I literally said that. let me just repeat my self for your sake, It's a scam for any other reason other than you personally want to own one.

Loans are okay but they should only be taken out with a bank, credit union or building society where interest rates are reasonable, and you have the money (and budget) to pay it back over a course of how many months or years. "Quick easy money loans" and other dumb names should be avoided like the plague, they deliberately pry on the vulnerable and send them into debt for a looong time.

There are loan places everywhere up here and ads play on the radio constantly. There is this one ad where the script stays the same but every few months the name of the company changes and the max loan floats between $500 and $1000. Pretty scary shit once you realize people take loans elsewhere to pay off other loans.

If you're buying in any major city it's a scam. Fuck all these systems trying to predate on the poor. If you want to start a new loaning system, you should have to prove that it won't disadvantage the poor - instead of the other way around.

Home ownership can be problematic on a large scale as well, since it kills labor mobility and ties peoples well-being to very expensive assets which can be quite disastrous. People also often are then encouraged by their own self-interest to support policies that pretty heavily fuck the poor over too, to protect their precious property values and schools (lots of this in california.) US govt should frankly stop subsidizing home ownership so much and redirect that money to low-income renters if anything tbh.

All of the things youre complaining about are solved if youre financially stable. Dont buy a house if youre 19 and work at McDonalds. Do buy a house if youre 30 and in a long term career where you can make a mortgage payment and still put money away. If you have good home owners insurance, natural disasters wont worry you. Moving for work can be a good thing because housing prices have consistently been skyrocketing, so you can make money off the sale of your home, pay the bank back, then use the rest towards the down payment of your next home. If anything, renting is an absolute scam. You can live in a place for 40 years and never own it. You cant paint the walls, you cant modify the place, you cant change the flooring, some places wont let you own certain pets, and your landlord can raise rent pricing as much as he wants at the end of your lease. He could also just evict you for whatever reason too. Renting is the absolute biggest scam and worst waste of money on earth. Youre paying monthly payments and never get anything kn return or move closer to ownership. Home ownership can be shitty sometimes, but you know whats great? Not having to make rental payments when youre retired and relying on a 401k that could be wiped out, and social security that could be wiped out. Having as few bills as possible when you retire is a good thing, and having property you own and can pass down to your kids is also a good thing.

Why would not encouraging people to make bad financial decisions encourage a bubble to pop ? The pop was largely due to people being encouraged to take out mortgages they couldn't afford, and a lot of economic suffering is caused by people who are stuck losing money in their homes and are unable to relocate to greener pastures. Also, what do you mean by your 401k that could be wiped out, and your social security that can be wiped out? Your property values can be wiped out, leaving you much worse (and w.o recovery like a nice index,) and for bills, you're paying more for insurance by owning the house, your utilities will generally cost more, and you're paying property taxes. As well, if shit breaks, the cost is on you to fix it. Shit can happen, let's say you notice something strange in your living room, and call over some guy who then discovers that mold has been developing under your nose. You could very well instantly be tens of thousands of dollars down. If we're just talking finances, I'm pretty sure accounting-wise you'd turn out better sticking the mortgage costs into traditional investments than a house.

401ks can be affected by the stock market and other factors (mine just dipped pretty badly last month) and social security might get killed in the next few years with the way congress has been depleting its funds. If your property value gets wiped out when youre retired, that sucks, but your house is still paid off. If anything its not so bad because your property tax is cheaper. And speaking of that, unless you live in a communist section of the US, property tax is just a few grand yearly. Easy to pay if youre financially stable and have savings in the bank. Hmm, if only there was some way we could curb predatory lending practices. Maybe if there was some law we could create that would make it illegal for a bank to offer someone making 40k a year a 1.5 million$ 15 year adjustable rate mortgage. If only you could regulate things hmmm mm. Theres billions of dollars in the US housong market. If the govt were to quit supporting that market, it would be catastrophic. If shit breaks, fix it yourself. Yea molds tough to quarrel with on your own but the vast majority of stuff that could happen can be fixed on your own if you know how to run a screwdriver. You know what bonds and stocks dont get you? A place to live in that you own. Renting and owning both have its ups and downs, but saying that owning is all bad is just dumb. Id rather own a home than bounce from rental to rental for my whole life.

I don't think I ever sad owning is all bad. It's just that the benefits of owning are primarily vanity and not financial, which is fine, but that's why I say the government shouldn't necessarily be subsidizing it as I believe that subsidies should either A. Provide benefits to society at large, like green energy subsidies. Or B. Provide benefits to those in need, and frankly, most of this deduction money goes to middle and middle-upper class homeowners and not the poor. Did you read the source I provided earlier as well? Home ownership can be damaging to the economy for more reasons than just subprime mortgages causing a pop. I'm also not quite convinced that the government rolling this back would instantly collapse the housing market, and in some ways, it would actually make it healthier since people would be a bit less encouraged to take out larger loans. Your time is not exactly free, especially since it may be so bad that it threatens permanent damage to your house, and in that case, you would still have to purchase the materials e.g. flooring. But yeah, that is true that you can work on a lot of things relatively easily. Investments can drop, of course. But you aren't supposed to think of them in the short-term, and you can expect your money to double every 11 years or so, and in that way I would say that actually, yes, bonds and stocks do get you a place to live in that you own. If you're retired, the factors that I mentioned (e.g. killing mobility, property value) don't actually matter that much anymore.

What are you smoking? The money you put into an apartment basically vanishes. You do not own that apartment, and you get nothing but a place to live. Should you decide to move, you don't get any of that back. On the other hand, if you buy a house and decide to move, you can sell the house and recoup the majority of your money put in. In any case, you don't lose that investment. Not to mention the benefit of not having to pay rent for the rest of your life once the house is paid off is VERY good for the economy, since it gives people more spending money.

In cities like Dublin (for whatever fucking reason) - it's actually cheaper to get mortgage and pay installments monthly than it is to rent. In Dublin you can get decent-ish two bedroom apartment for around 180k - 200k While if you were to rent same two bedroom apartment you would be paying: 1500 (In absolutely best case scenario) up to 2000 (Not worst case scenario yet). Grab a mortgage for 200k for 15 years and you can own that apartment for 1.1k per month but instead of being left with nothing afterwards - you will have a valuable asset that you can sell/rent/exchange. Lets assume you are renting, you're paying 1750 (middle ground) per month. Lets assume you rent that apartment for 10 years, you've just paid out some dudes 210k loan, he can kick you out and live in his apartment while you're left with nothing. So year, loans can definitely work out well, I don't understand those people though - that get 1k loans for iPhone every year, loans for electronics, personal loans for holiday and loans from loan sharks. I have a friend, when he was dating his gf - he went to loan shark for 1.5k loan to bring her on holiday to Italy. He's still paying it out, some dude shows up beside his house every Friday and he collects money from him, I didn't ask for specifics but I can only assume interest rate on that was pretty high.