5 Types of Loans To Avoid With Howard Dayton | FaithFi
October 2, 2023
5 Types of Loans To Avoid With Howard Dayton Faith & Finance with Rob West
George Washington once said, “There is no practice more dangerous than that of borrowing money.” Our nation’s first president— a man who faced danger many times on the battlefield— thought borrowing was more dangerous. Today we’ll talk with Howard Dayton about 5 very dangerous ways of borrowing that you should avoid.
Show Notes Howard Dayton is the founder of Compass— Finances God’s Way and the former host of this program.
0:55 - WHAT'S THE FIRST LOAN TYPE WE SHOULD AVOID? Finance Company loans:
High interest rates, large fees, and closing costs. Important to differentiate between interest rate and the APR, as the latter includes additional costs.
1:24 - AND THE SECOND? Payday loans:
You Might Also Like August 11, 2026
Keeping Up With the Joneses The pressure to keep up with the Joneses can be powerful. Rob West reminds us that we see what others drive, wear, buy, ...
August 11, 2026
International Investing for Faith-Based Investors with Benjamin Bailey Diversification is a key part of wise investing, and for many portfolios, that means looking beyond U.S. markets. But Ch...
August 10, 2026
Faithfulness Over Greatness In a world that tells us to build our platform, hoard our wealth, and promote our name, faithfulness is better than grea...
Where faith meets finance.
Viewed as "legalized robbery."
Typically have an APR of 390%.
Creates a cycle of borrowing due to high interest rates, with borrowers often giving away their entire paycheck to cover the loan. 2:21 - WHAT'S THE THIRD LOAN TYPE?
Short-term loans based on an item's value which is lost if the loan isn't repaid on time. Interest rates range from 5-25% per month. Many borrowers never reclaim their pawned items. 3:21 - AND THE FOURTH?
30-day loans using car titles as collateral. Risk of car repossession if payments aren't made on time. Referred to as "legalized auto theft" since you lose both the car and its equity regardless of loan size. 3:57 - WHAT'S THE FINAL LOAN TYPE TO AVOID?
People anticipate tax refunds in April but might take a loan if they're cash-strapped. Some tax preparers offer these loans without highlighting high interest rates that can be in the triple digits on an annual basis. 4:40 - DO YOU HAVE ANY TOOLS OR RESOURCES TO HELP PEOPLE NAVIGATE THEIR FINANCES BETTER?
A six-week video titled "Navigating Your Finances God's Way."
Covers topics like debt, saving, generosity, investment, work, honesty, etc. Suitable for various settings: Sunday school, small groups, workshops, or individual study. On today’s program, Rob also answers listener questions:
Should I tithe before or after taxes? How can I invest for retirement while on SSDI and without earned income? Should I use my 401 K to pay off my variable rate home equity loan? Is the id.me login for IRS.gov legitimate, and should I switch from an I bond to a bank CD? How can I help a woman with recurrent ovarian cancer financially, especially when she's working in a low-paying job? RESOURCES MENTIONED:
© 2026 FaithFi: Faith & Finance. All rights reserved.
