About 10 yrs. ago, I sold a pick up to my s-I-l and her husband for $7,000. They couldn't get a bank loan because of poor credit. She tried to get me to "take pymts" on it. I refused for the same reason the bank did but to keep the peace, I told her that we really needed the cash.
I've known her and her husband for more than 50 years, I knew, without a doubt, that they would never repay me in a hundred years.
They really wanted that truck and I was selling it to them at a real bargain price. They finally found a loan company to loan them the money at 27% for 7 years.
I didn't do the math but they probably paid double for the truck.
MORE than double, actually. $15,643 on 84 payments of 186.23 (assuming they made the payments on time and didn’t get hit with usurious fees).
27%?! That’s more than the interest rate my CC charges on ATM withdrawals!
(Std rate is 19.8%—not bad for a first credit card, considering that the “prescreened credit offers” that show up in my mailbox are for loans with rates upwards of 25%.)