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
- 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......
- 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......
- More free online book resources A while back there was an article on Google Print alternatives. Today, Search Engine Watch has an article on a couple other options. First up is Netlibrary.com, which provides free access to a wide range of etexts. Access is not to the general public, but through partner institutions. For instance,......
- Are Companies that Make Payday Loans Bad? There's a lot of negative talk in the personal space about pay day loans. In general this talk is justified as many people get trapped in loans with high interest rates. The rates are so high that sometimes people can only pay the interest on the loans. They can't pay......
- 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,......
- Best Reasons to Use Unsecured Loans Prosper is a p2p lending marketplace for unsecured loans. Borrowers can borrow money up to $25,000 via an unsecured 3 year fully amortized note. New lenders recieve a $25 bonus on entering your first loan. The following is a guest post anybody else interested in a guest post should email......
- 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?