3 ms·

I was in a recent emergency situation where I could’ve needed to spend thousands of dollars on the same day. I just don’t have that kind of liquidity. I can t

I was in a recent emergency situation where I could’ve needed to spend thousands of dollars on the same day. I just don’t have that kind of liquidity. I can turn the required savings/stock in to cash with 3-5 days of lag. But not the same day. This is where a subprime loan would be useful as a bridge, and in that situation I don’t think it would ruin my life. Consumers know what’s best for them. As long as the APR is accurately advertised, I don’t see why people should be jammed up because some people think interest is a sin.

raverbashing 5y ago
If you have the collateral you don't need a subprime loan. >Consumers know what’s best for them. Yeah that didn't work out the last time
YuriNiyazov 5y ago
Just as an FYI: if you have stock in a regular brokerage account, you can take out a margin loan in cash immediately. It depends on the broker, but IME it's fairly common (e.g. Fidelity does it). Margin has a bad name as a "high risk" activity, but that's mostly when you have a concentrated position and are taking out a margin loan to double down on that concentrated position. Using margin as a bridge cash loan for a few days is a fairly low-risk proposition.
freeone3000 5y ago
Consumer credit cards aren't subprime lending; you're given an entire month of float before interest, and usually have sub-20% APRs. This is entirely different from a payday loan. Even a personal finance line of credit is much lower interest.
pyrale 5y ago
> Consumers know what’s best for them. The rest of the world would prefer you not to crash the world economy like it happened in 2008, for the sake of a clueless aphorism.
- jdavis703 5y ago
  Except in 2008 many people did not understand what their actual monthly bill would be with an ARM in a worst case scenario, and banks were more than happy to handwave away any concerns.

raverbashing 5y ago

If you have the collateral you don't need a subprime loan. >Consumers know what’s best for them. Yeah that didn't work out the last time

YuriNiyazov 5y ago

Just as an FYI: if you have stock in a regular brokerage account, you can take out a margin loan in cash immediately. It depends on the broker, but IME it's fairly common (e.g. Fidelity does it). Margin has a bad name as a "high risk" activity, but that's mostly when you have a concentrated position and are taking out a margin loan to double down on that concentrated position. Using margin as a bridge cash loan for a few days is a fairly low-risk proposition.

freeone3000 5y ago

Consumer credit cards aren't subprime lending; you're given an entire month of float before interest, and usually have sub-20% APRs. This is entirely different from a payday loan. Even a personal finance line of credit is much lower interest.

pyrale 5y ago

> Consumers know what’s best for them. The rest of the world would prefer you not to crash the world economy like it happened in 2008, for the sake of a clueless aphorism.

jdavis703 5y ago
Except in 2008 many people did not understand what their actual monthly bill would be with an ARM in a worst case scenario, and banks were more than happy to handwave away any concerns.