Absolutely shockingly high interest rates…. Wow. The last year or so I’ve seen a lot of westernsky.com ads. They are an LLC that is native-american owned and operating in the sovereign nation of the Cheyenne River Sioux Reservation. (Within the borders of the US, but federal jurisdiction is on iffy ground there.)
Now, they do say they’re loans are expensive, but they are advertising their loans as being more affordable than many payday loans and I took a look at their site. Read on to see why I call it the westernsky.com scam …
Loan Product Borrower Proceeds Loan Fee APR Number of Payments Payment Amount
$2,600 Loan $2,525 $75 139.34% 36 $298.94
$1,500 Loan $1,000 $500 194.70% 24 $166.95
So…. for a 1500 loan you only get $1000 because of the $500 loan fee!!!! But over the life of that 1500 loan for the use of $1000 you pay back $4006.8
But what if you go for the $2600 loan? The loan fee is much less at $75 (so you get the use of $2525…. but over the life of the loan you wind up paying $10761.84
!! That is why I call it the westernsky.com scam !!
Are they doing something illegal? no
You would be better off defaulting on whatever you need the 2525 or 1000 for, because you are going to regret getting a loan like this. Please do not consider something like this or other payday loans to cut your credit card balances down to size.
The moral of the story is to be VERY careful for any kind of loan (including credit cards). For all of your loans and credit lines it is a good practice to be familiar with your interest rates (I like having them all in a spreadsheet.) This way you can know which of your card balances to “attack” first. (Highest interest rate first!) Avoid falling victim to the westernsky.com scam!
Read the details, read the fine print, read the interest rate information and be aware that rates may increase if there is a missed payment. Try to avoid finding yourself WASTING 10,000+ dollars over the next few years just to have 2500 today.
By the way, it’s not clear to me if the terms at westernsky.com require monthly payments or weekly payments. Some other notes though are the following quote:
“Please be aware that not all applicants will qualify for every loan product or the lowest interest rate for a particular loan product. Some applicants will not qualify for any of the products. ”
SO, you may not be lucky enough to get the LOW (?) rate advertised on their site. (I’d be really surprised if they turn any applicants away.)
Desperation loans like this only put off the inevitable crunch and will more often than not make your financial and credit situation MUCH worse than it already is.
I have reprinted this from another site that I operate as a public service to remind people to be wary on approaching any loan like this.
Related PostsRelated Posts
- On Demand book publishing - iUniverse The last entry in this series I looked at lulu.com which offers on-demand book publishing for those looking to publish their own book. The level of entry at lulu.com is nothing, no setup fee and they take fixed cost plus 20% of your profit which all told is not a......
- Microsoft taking a name... Slashdot has an interesting story up about the background of the selection of Windows Defender. It seems that an Australian software developer had a product called Windows Defender which protected Windows users from malicious websites. Well a short while back he got a call from lawyers associated with Microsoft about......
- Virtual Earth at MSN Well, I've said good things about Google maps, so when I saw that Microsoft had rolled out Virtual Earth I wanted to take a look. I've been trying to get in for a little while. I think it's still very beta-ish, so well give a pass on availability. I like......
- Use Prosper.com to Repair Your Credit This blog is mostly dedicated to Prosper.com lending.Â However, I think about all aspects of the process at Prosper.Â Lately there have been a number of postings that list repairing credit as an ancillary benefit of borrowing on Prosper.com.Â Repairing damaged creditÂ is a critical step in reducing debt since better......
- New Loan Funded — Purchasing rental equipment in my hardware store — $20,000 at 24% — C Credit — DTI 29% A new loan funded (Purchasing rental equipment in my hardware store â $20,000 at 24%).Â I participated via a manual bid, this was an auto funding loan.Â Â The borrow hadÂ C credit and 29% DTI.Â As a reminder my standing orders (and manual bids)Â only find loans with 0 current delinquencies, 10......
- Student Loan Refinance Tips The vast majority federal student loans are eligible for student loan consolidation, which is just a fancy word for student loan refinancing. The student loan refinance rules, like those of most government-mandated programs, can be a bit complex. Federal education loans eligible for refinance include FFEL, Stafford, SLS, Perkins loans,......
- Banks and Web security
- How common is data theft?
- How to escape from the deluge of credit card offers…..
- Voting for Self Interest? or National Interest?