Western Sky Personal Loans- Don t Let the Sky Fall on You
As I was doing research for last week’s post on payday loans. I ran across the Western Sky Financial website . I had seen the ads for these personal loans on TV for the last year or so, but hadn’t paid much attention since I teach people to avoid the bondage of debt .
But once I found their site and read the information about their personal loans and their business model, I knew I had to write about it.
I don’t usually write about a particular business or personal loan product on my blog, but I felt that Western Sky Financial was “worthy”, and not in a good way .
Because (I’ll choose my words carefully here), this is probably the riskiest personal loan product I’ve ever seen, bar none.
Personal Loans With a “Bite”
These are not like the payday loans that I wrote about in the last post. These are installment loans, meaning you borrow money and then pay a monthly payment until the debt is satisfied.
So why are these particular personal loans so bad?
Let me count the ways.
“The interest rate on a typical loan of $2,600 is 135% with an APR of approximately 139%. Borrowers may prepay their loans at any time without penalty. There are no upfront fees. If you are approved and your loan is funded, we will collect a $75 loan origination fee from the proceeds of the loan.”
Wow! That’s a big fee on top of a huge interest rate. and a bad deal to be sure. But that’s only the beginning .
If you click over to the “Rates” page you get the whole story. Here are the rates I saw when I clicked on my home state of Tennessee: