If you’ve watched television late at night, as I do when I’m trying to come up with things to write about here on Consumerism Commentary, you might come across Gary Coleman pitching cash loans. Here’s the commercial I keep seeing (embedded video). If you can’t see it, here’s the direct link.
Arnold’s talkin’ ’bout CashCall, which provides immediate cash loans in states where they are legal. These aren’t quite “payday loans,” which are expected to be fully paid back within a couple of weeks. These are long term loans, and if payments are made monthly, they would extend four or eight years. Look at these ridiculous rates. As a resident of New Jersey, I would not “qualify” for a loan, but here is what I would be paying if I lived in Pennsylvania and qualified for these loans.
What the website doesn’t tell you is how much money you’ll actually pay for the “benefit” of immediate cash, including the $75 origination fee. Their chart should look more like this, but then maybe people would not be nearly as interested in these products.
Desperate times call for desperate measures. Gary Coleman is living proof of that adage. All the more reason to cover yourself by having a stash of accessible cash or highly liquid savings — or at least, available credit — for emergencies.
By the way, the situation is worse if you live in Nevada.
Updated March 7, 2012 and originally published June 21, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.