Tasnuva Ahmed

Posted by on Jan 28, 2008 in Quotes, Testimonials

“Sometimes [a payday loan] is your only option. I respect the fact that they’re there when you need them. You have bills, and you have to pay them. But I have never recommended this to anyone. You can’t catch up.”

Payday loan consumer Tasnuva Ahmed, who has been using cash advance loans regularly for two years, shares her experiences and offers some advice for would-be borrowers…

Tasnuva Ahmed:

  • started two years ago with a $100 payday loan
  • pays $15 per $100 borrowed every two weeks*
  • now owes a total of $450 in interest alone** (every 14 days)

*According to the Payday Loan Calculator (External Link), $15 per $100 every 14 days works out to an APR (Annual Percentage Rate) of 391.07%.

**Since Ahmed is paying only the interest but not the principle, all these payments bring her no closer to paying off her payday loan debt. She is on a debt treadmill.

This debt is her second largest expense and even approaches the amount she pays for rent.

Ahmed, who is currently working with a credit counselor to reduce her $2000 payday loan debt, offers this advice for would-be borrowers:

“Coming here is so easy… But let me tell you, this will just crush you. Find a friend, a relative, anything, but don’t do this to yourself.”

Tasnuva Ahmed is 27 years old and works as a manager at an unspecified service company.

Source:
Are Payday Loans a Service or a Disservice? by Marc Fisher (The Washington Post)

Tasnuva Ahmed recommended borrowing from a friend or relative instead of a payday loan. While doing so is much cheaper, there are risks involved. Please read Family and Friends in our Payday Loan Alternatives category to learn more about the dangers of borrowing from loved ones.

She is also working with a credit counselor – an excellent idea. If you have used payday loans regularly for two years, it is fair to say you are suffering from a financial crisis that requires professional help. Our Links category has many credit counseling resources including American Financial Solutions, Association of Independent Consumer Credit Counseling Agencies and the National Foundation for Credit Counseling.

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