If you are going to pay $1.50 (or more) for the privilege of using a “White” ATM, you are paying worse rates than you would at a Pay Day Loan place.
Don’t believe me? So if I borrow $100 from a Pay Day Loan shop, the fee for this joyful thing is about $21 that has to be paid in 14 days (elapsed, not business days). Just typing that makes my stomach turn, but I did look it up on one of the handy online pay-day loan sites (yes, that is sarcasm).
Suppose you take $100 out of $20 at a time from these White Shylocks (I use that term as a derogatory term for a money-lender and not in any other way). In that case, you’d pay $7.50 in fees (oh, and your bank might nail you for more fees), so that looks much less than the $21 the Money Vampires want to charge you, however, indulge me on this.
- In strict mathematical terms, given the $1.50 service fee is applied the second you get it, your interest rate is really effectively infinite (if the Time elapsed is Zero, math goes berserk).
- Let’s assume you are paying $1.50 because you are too lazy to find an actual bank (your bank), and there was most likely a bank within 1 hour of you, so you are paying effectively $1.50 for an hour (or 7.5% interest for an hour). That translates to about 657 times your $20 withdrawal or 65700% ?
What is This?
Yes, this is more fun with numbers, but think about it, next time you use a White ATM.