Western Sky Financial – Helpful Loans Or Robbery? [VIDEO]
We've all seen the commercials for payday loans, signature loans, and even car title loans. And when you need cash fast, these types of loans seem like a great option. But are they really helping you or putting you in major debt?
When I was younger, I wanted money to get out of town so I decided to try a signature loan. That was the first and only time I ever did that. The interest rate was insane and although I had a great time, in the end it wasn't worth the money.
Lately I have been seeing a commercial over and over by a finance company called Western Sky. The commercial states that you can get up to $10,000 overnight. Sounds good, especially if you need money fast. But I noticed the lady say that they were expensive, but worth it.
So I paused the commercial to read the fine print and was blown away. Here is what I read:
A typical loan of $5,000 has an interest rate of 116.73% and you would be making 84 payments of $486.58. Insane! I did the math for you and you would end up paying back $40, 872.72.
I think this is crazy! How can loan companies get away with this? People go to them because they are having a hard time financially and then they pretty much rob them blind. If a person needs $5,000 then they surely do not have $40,000! And 84 months translates to 7 years. You will be paying this back for seven years.
If you ever hear anybody say 'Yes the money's expensive' that should be the largest red flag you have ever seen.
Here is a chart off their website that has all their rates and fees.
Now I understand that these types of loans often help people in their time of need, but shouldn't there be some morals behind it? Why would anyone want to borrow $5,000 and pay back $40,000? This should be ILLEGAL!
I am sure you have seen it on TV at some point. They use a pretty Native American girl to sell it. What do you think of these types of loan companies?