|intermediate||payday loans||man – woman||01:43|
Is borrowing money for these things a good idea? Why or why not?
“nest egg” = extra money to save for the future
“We need to have a nest egg in case the economy worsens.”
“be broke” = be out of money
“Brandon is broke, so I can’t buy any food this week.”
A. Listen to the recording and answer the questions.
Okay. Get this. Some friends and I are going to Hawaii next week, and my small bag won’t be big enough for all the souvenirs I plan to bring home. I’m going to get you some peanuts, too.
What? How can you afford that? You don’t have a job, you already have an outrageous car payment, and you still owe me $500 for that old car that didn’t last a week.
Ah, you don’t know anything. You can get a loan quickly without any hassle.
Exactly, because they know they can run you dry. [ No. ] I mean they might charge you over 300% interest compared to about 12 to 30% interest for a regular credit card.
Uh, well, I thought I’d sell my mountain bike or my comic book collection or you could give me the money.
Listen to the conversation again. What advice can you give the man in this situation? Is he making a good choice? Are there other ways he could pay for his plans instead of taking out a payday loan? Explain.
Use the Internet to learn more about the advantages and disadvantages of payday loans. Are such companies or services available in your country?