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 September
4, 2012
The Buffalo
Bills released Vince Young from their team this past week prior to the
start of the regular season. However, this isn't the first time Young has
faced a period of time without pay. On August 10, 2012,
TMZ reported
that
NFL quarterback
Vince Young took out a "lockout loan" of $1.69
million back in May 2011 when the NFL was going through a lockout and no
players were being paid. Pro Player Funding specializes in short term
loans to professional athletes. These loans are very similar in terms to
those offered by pay day loan centers. For example, Young's loan was
written with a
24% interest rate and Pro Player
Funding could demand immediate payment in full, plus interest, if only one
payment was missed. In 2012 Pro Player Funding claimed that Young
defaulted on the loan. Both Pro Player Funding and Vince Young have taken
legal action in regard to this matter.
Payday loans
Have you ever been short on cash and needed an advance? Perhaps one of the
worst things you can do is to go to a payday loan office. Yes, you will
receive money right away but the interest rates they charge are
outrageous. This example from Wikipedia says, "For a $15 charge on a $100
2-week payday loan, the APR is 26 × 15% = 390%".
If you truly need money immediately, a better option may be to approach your boss or human resources manager for a
payday advance. Most likely your HR representative has been approached
before about this subject and will have a written company policy on the
matter. Some companies are more lenient than others, and you may be asked
the reason for the advance. Some companies reserve paying in advance only
if the employee is facing a financial emergency. The advantage of getting
an advance from your employer is that you will most likely not be charged
any
interest.
Bigger problem
The news stories reported that it was Vince Young's financial advisor that
persuaded him to take out the loan, and not Young himself.
However, seeking out a short term loan to replace a regular paycheck usually indicates you are having
money troubles at home. The truth is there are plenty of times a financial
crisis comes up because of a lack of planning and budgeting. Even if you
are not spending money on luxuries or desires life seems to have a way of
getting your money. The car breaks down, the kids need shoes, or the gas
prices went up. A better plan is keep track of your expenses and income,
plan for out of the ordinary expenses, and write a budget for the next
month.
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