Beware of Loans

David Trammel's picture

As the collapse of our industrial civilization proceeds, one of the things you will need to be aware of is how scammers and con artists abuse the legal framework to rip you off.

We've all grown up being taught that lenders want you to repay your loan, in a reliable manor, month to month. Unfortunately some lenders are finding out that making the loan, and then foreclosing on you via the courts is more profitable, even if you are making a good faith effort to pay on time and live up to the contract you signed.

Especially for those with something major to lose, like home owners and those with businesses. Here is a frightening story of one such con artist.

Part 1 of 4: "I hereby confess judgment"

I am the first to admit that there are times you will be in trouble and need a short loan. All of us have seen the payday lenders that dot the landscape now. And have heard how much they charge. Annual interest rates totaling 300, 400% or more. I have used these companies in the past, when I was in a spot of economic trouble and need a short term loan.

There are right ways to use these people and wrong ways. Too many roll their loans over, that is the practice of paying off their loan to turn right back around and take the money back out. Don't do that. Payday loans are typically for a two week period. That's how they get you with the outrageous interest rate. What I would do is pay half the amount off at the end of the first week, and then take out just half the amount as a follow on loan. Then pay that off the next week. And here is the biggie, I wouldn't come back for another loan for a while.

Getting you into a cycle of paying the loan off and then taking it back out, is how the loan companies trap you. We all think of those loans like credit card debt. You think you can just blow it off and then the loan companies have to go through tons of hoops to get you to court and get a judge to rule you have to pay (even if you blow the judge off) BUT that's not the case.

The Establishment is not your friend. Worse its not even uninterested in you. Laws are passed to help those with money and lawyers to screw you and me. The only way to avoid that is to not pay their game.