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100% agreed on the APR thought. It's because people don't think about the time of the loan when they look at APR - the only reason Payday loan APR looks expensi
by cm2012 11y ago
100% agreed on the APR thought. It's because people don't think about the time of the loan when they look at APR - the only reason Payday loan APR looks expensive is because you have a week to pay it back instead of a year. If you could pay back a payday loan over a year (which why skyrocket the risk profile), the APR would be very low.
We don't think about any other product like that. Do you consider your tv cheaper if you pay for it over a year rather than at purchase? Of course not...
- deleted 11y ago[deleted]
- Karunamon 11y agoErr, that last thing you mentioned is the entire business model of the rent-to-own outfits like Aarons, Rentacenter, Fingerhut...
- cm2012 11y agoGenerally physical items are considered more expensive if you pay back over time, not less. For total cost, loans are the same way, but are measured by APR instead.