This is a suggestion for the 2nd edition of your book, “Taking the Mystery Out of Money”: include chapters on payday loans and check cashing places. Of course most folks have no clue of the real interest rate that they are paying. I am blue in the face from explaining to people I know that they are really paying over 100% per year in interest.
A friend just rented a commercial building to one of these payday loan places. The owner already has 2 of them in my town and supposedly owns over 50 of them in KY & TN. Obviously he is making a ton of money and lots of folks are having trouble making ends meet. A large garish sign proclaims “Borrrow $200 Pay back $203”. I suspect there are also some “processing fees” as well as punitive late charges. Nonetheless borrowers are encouraged to roll over the loan if they can’t pay it off.
There is also a well known liquor store in my town that cashes checks. I would bet that this owner makes more cashing checks than from selling liquor. They charge “only” 1%!! So you cash a check for $100 & get back $99. Not bad, right? Wrong!! Newbies: If you do not understand that this is over 100% per year, you need to start reading Lonnie’s books. I have been in this store on Fridays & it is scarey. Guys line up, cash their checks, & walk over to the fridge for some suds. They are no better off than they were on Monday morning. Sad.