AUSTIN — It’s a long shot, but if you’ve had an unexpected cash flow shortfall, you should probably pay it off as quickly as possible, a local financial adviser said Thursday.
Andrews Auction Center has a “pay-it-now” policy, requiring buyers to pay as much as they can in advance, before the next payment.
The bank, which is owned by a subsidiary of the Warrens, has been making payments of as much $1,000 or more a day since March, said Chris Davenport, who heads the firm.
Pay as much money as you can before you start to run out of cash,” Daventon said.
For a month, Davenpackers office was full of customers who paid by credit card, debit card or PayPal, Dvenpackers said.
People with large balances often did not realize the bank was doing this, he said.
Some of the customers who missed out were paying more than the bank had expected.
They may have been expecting the bank to offer more, or they might not have known they were paying interest on a debt they already owe.
They also may have had trouble keeping up with the payment schedule, which was not set, Dampons office manager, Mike Condon, said.
For example, a couple with a $100,000 credit card balance was paying about $600 a month.
They missed the next payments, Condon said.
Daven packers had to raise that amount from $700 to $1.5 million, Cordon said.
The company has paid about $1 million to the customer and its creditors.
“They’re getting a fair shake.
There’s a fair amount of money being made,” Dampon said.
It’s not unusual for businesses to take advantage of an emergency, said Steve Cushman, a former Austin City Council member who has been involved in the Austin community for more than 20 years.
It can be a quick fix if you’re not prepared.
You could have a couple of people who’ve been on a long journey and not made it, and they’re looking for a payday, he added.
If you have a good business model, you can do it, Cushmans office manager said.
Payday lenders and payday lending companies have become more popular over the past few years, and some of the larger lenders have increased the fees they charge for the services.