No wonder the economy has passed the u-bend.

Oct 1, 2008 | | |

On the news a couple of nights ago, they were interviewing a not-the-sharpest-tool-in-the-box type who'd just got a title loan. He needed $2000 for something, so he'd gone to a well known, large chain title loan place and taken out a 6 month loan on $2000. Not too bad. Until he showed the camera his payment plan. His interest rate was 120%. He was supposed to be paying back $460 a month for 6 months, which, if he'd managed it, would mean he was "only" going to pay $760 in interest on his $2000 loan. As it was, he was only paying them $200 a month, which was stretching his payment plan out from 6 months to 4 years. At the end of it, he was facing $7700 in interest on a $2000 loan.

And. He. Was. OK. With. That!

These are the people we're going to be bailing out with the billions of dollars in this package? No thanks.