Loan

May 20 2017

Western Sky Personal Loans- Don – t Let the Sky Fall on You #best #car #loan #rates

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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 .

Why?

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.

Pretty straightforward.

So why are these particular personal loans so bad?

Let me count the ways.

According to the “Terms of Use” page on the Western Sky Financial website:

“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:

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