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What Are You Talking About, Willis? High-Interest Loans.

This article was written by in Debt Reduction. 7 comments.

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.

Cash Call

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.

Cash Call

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.

Cash Call

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.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 7 comments… read them below or add one }

avatar Dy

I recently had a discuss with some friends about how we should start a loan sharking business. The returns sound great because most people wouldn’t pay off the loans on time and the interest alone would be considerable. But I thought about the moral implications of making someone akin to an indentured servant and I just couldn’t do it.

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avatar Chris

Wow! Seeing all the numbers lined up really brings it home. A 7 year loan for $5k and you end up paying over $21k. Incredible.

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avatar mapgirl

Dy, try Prosper.com. It’s not as usurious as loan sharking, but still beats a high yield savings account. :-D

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avatar plonkee

I’ve had junk mail advertising loans with 147% APR. In my case, I think they actually are loan sharks with a letterhead.

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avatar Ian @ FamilyFinanceBlog

Wow! I’ve always known that those rates had to be awful, but I never realized how awful they were. It’s a shame we live in a culture where people probably get these loans for the large screen TV they need RIGHT NOW, not realizing it will cost them 4 times as much.

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avatar Moneymonk

Paying almost 4 years on a 1,000 loan. No thanks.

By the way, I have seen that commercial and we all know Gary is broke.

I have to hand it to him, he still trys to make a quick buck here and there.

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avatar christine

well i’m single mother hard worker and looking for some company to give me a loan the only response is pay day loan .I don’t want any dealing with them bad luck .if anyone knows of such place E-mail me.

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