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FYI, Payday Loans Still Suck

Payday loans are an AWFUL idea. If you are ever, ever tempted to use them, read this post first. There are lots of warnings in the fine print, but you have to understand them. They will put you further in debt and keep you there. Instead, use these tips to figure out a way to get by without payday loans.


Earlier this week I received a letter from a company called Plain Green. Oh, yippy skippy, I thought. Another payday loan place trying to rip me off. As I looked at the materials they sent, I realized that this particular offer was an even bigger scam than most of the others I’ve received. I want to warn you guys in case you receive something similar to this – Always read the fine print, and understand that these loans are never a good idea.

The Offer

The top of the letter boasted, “You’re prequalified! Get $1,200! Cash as soon as tomorrow!”

Reading further, I learned that Plain Green loans are supposed to be quick, convenient, and good for financial emergencies. Customers don’t have to wait for approval, own a home, or even have good credit. Plus you can save up to 40% on your first loan compared to a typical payday loan!

Even though I know better, by the time I finished reading, my brain was telling me that Plain Green is a good company who cares about its customers. Whoever writes their sales letters does an excellent job – I can see where people could convince themselves that they need a loan from Plain Green. All this stuff sounds great to a person who desperately needs money! Fortunately I am not that person.

Why Plain Green is a Scam

You guys know I’m not a fan of payday loans. That said, I’d like to talk about Plain Green’s claim that their loans are 40% cheaper than other payday loans, because it’s a load of crap. Their reasoning is that their APR is “only” 378.96%, while the average payday loan place charges 603.84%.

Okay, fine. Both types of loans have completely insane interest rates. But let’s ignore that for a minute and look at how these loans play out in real life. (Terms and APRs are current for my state as of the time of this writing.)

$250 Payday Loan from ChecknGo:

    • Amount borrowed: $250
    • APR: 470.43%
    • Terms: One payment due 14 days after loan is taken out
    • Total I would pay back: $295.11

$250 Loan from Plain Green:

    • Amount borrowed: $250
    • APR: 378.96%
    • Terms: 12 biweekly payments of $45.29
    • Total I would pay back: $543.48

Raise your hand if you’d rather borrow from Plain Green and spend nearly $250 more for the privilege of paying back your loan over 6 months instead of 2 weeks. Wow, really? No one? That’s what I thought.

Actually, even Plain Green doesn’t recommend that you borrow money from them:

Never mind the fact that this is buried in tiny letters at the bottom of their website under all the other stuff, like how taking out a loan from them will make your dreams come true. (Okay, not really, but it might as well say that.) They are basically telling you that it is cheaper to use a credit card or take out a personal loan than to borrow from Plain Green. And that’s coming from the same company sending out the letters.

Don’t Fall for Scams!

Look, I know it can be scary to need money and not have it. Believe me, I’ve been there. But if you don’t have $250 to your name, the LAST thing you need to do is hand some company nearly $550 in payments. Even using a credit card would be better than dealing with some scummy place like this.

Ideally we would all have adequate savings in place and we would never even consider borrowing from a place like Plain Green. I know that’s not always how it works, though. Maybe you totaled your car – you know, the one that’s worth far less than the amount left on your loan. Maybe you’re almost broke and trying to decide which bills to pay. Or maybe, like I used to, you just spend more money than you earn.

If you receive letters like the one I got from Plain Green, throw them away! Don’t even think about payday loans or any kind of high-interest loans as an option. Those places exist solely to rip off people who don’t have money saved for an emergency or a rainy day. Instead, take some time RIGHT NOW to figure out ways to start saving money. I don’t care how little you make or how many bills you have; you can save something starting today. The payday loan industry isn’t going to stop sending out sales letters, and emergencies aren’t going to quit popping up. The only behavior you can change is your own.


  1. debtandthegirl says

    OMG, that is too funny. I can't believe companies like this exist to be honest. They should have been outlawed along time ago. What a ripoff! I have never taken payday loan precisely for this very reason. Everyone, be careful with companies like this because they will rip your heart out just to increase profits!

  2. I don't get how the people who operate these companies do so with a good conscience!

  3. These types of companies are almost never worth it. I can't think of one time to use them if you have absolutely any other option available. Thanks for warning people Andrea.

  4. queenlbee says

    You are so stinkin' sassy. I love it.

  5. Amen. There are too many of these shop fronts in my city. Obviously, they make money off the low income poor and that's sad. We also have a lot of 'car title loan' scamsters too. Predatory lending at it's 'finest'.

  6. These types of companies prey on people who are too ignorant to realize the enormous amount of interest they are paying back. At the same time, it's each individual's responsibility to read and agree to the terms of any given loan. So….if people are willing to take these loans out then I just can't blame the companies for making them.

  7. Pretty scammy. I am not sure how these people serve a purpose in society. To me I don't think that any emergency situation dictates the need to get one of these.

  8. I've never understand why anyone uses payday loans, but there's a place right near my house and there's always a line up of people! It just breaks my heart because most of these places are total scams, and why would anyone think paying for money is a good idea? Come on!

  9. That reminds me of the post I did on a payday lender western sky. It’s sickening how they do people.

    • This one is also supposed to be run by a Native American tribe. I'm not sure if these companies are exploiting the tribes or if the tribes are exploiting themselves! <p style=”color: #A0A0A8;”>

  10. Can't plain green borrowers payoff in 14 days? If they can then lesser evil to go for, no? By law these companies issue the statutory warning, the one you mentioned. They are legal and doing business because some one needs them real bad. believe me there are plenty of such needy

    • You can say they are in that needy, but it's a hair away from predatory lending. I can't ever see a reason to charge 300% interest. They are basically legalized loan sharks.

      • They are bottom feeders for sure – Never ever in my life have I HATED someone so bad as these pigs – $700 loan, pay them twice $121 TWICE a month from Sept until April – I am getting the money together to say goodbye to these scum bags this week – Damn – and shame on Montel Williams – no respect for that guy either

  11. It is hard to believe these people actually make money like this. I can't imagine borrowing money at that interest rate. Thank Goodness I've never been that desperate.

  12. belowhermeans says

    Completely with you, as usual! Pay day loans keep people struggling to make ends meet and it's a terrible system. I know because I used to use them.

  13. Haha! Wow. I can't believe they tell you why they're a scam in the letter. They're probably legally required to, and thank God, too. I'll never be doing any payday loans.

  14. seedebtrun says

    Those are some positively ridiculous terms!..

    There is a reason why payday loan places usually only show up in bad neighborhoods.
    They prey on the desperate in society.

    It is sad, really.

  15. moneycrush says

    My father use to have us live on Payday loans. I swore to myself to never even walk into another Payday loan place because they are horrible and you end up paying way more than you took out.

  16. I see payday loans as one of the last resorts…like maybe I would consider it if my choices were payday loan vs mob vs prostitution. Oddly enough, I have a friend that refuses to listen to my advice and uses these every couple of months if she doesn't have quite enough to cover all of the bills right then. She rather use a payday loan than borrow from us or family. And she understands the math and the interest rates. So…ummm, apparently not everyone sees payday loans the same. 🙂

  17. Marilyn Rosario says

    I borrowed from them several times. It was ok cuz I paid them back the first payment. But I had an emergency where I had to relocate quick & in a hurry. For $800, first it was 6 weeks for $248. When I called them b4 the 5th month they said my payoff amt was over $800. Then they told me their interest increases daily so for me to get another loan with different organization to pay them. Never again!

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