The Bad And The Ugly
Decide carefully before choosing to go with a pay day loan. The interest rates within a 30 day period can go beyond 20%.
These companies are definitely interested in making a maximum return on the loan it and it would seem that they do not care if the terms are fair to you or not. Once you sign, you are on the hook.
You could argue that they have to recoup the costs of bad loans. I would argue that is not your problem. That is their problem and they receive a tax benefit when a loan is not repaid.
One big problem is that if you need to borrow this money until payday or for another reason, it is bad for you. The reason why is that when you pay them back, the interest is so high.
If you borrow one thousand and you have to pay them $1200, not only are you short for this pay period, but you are already up against it for the next pay period because of their high interest rates.
It is really a dangerous thing to do. If you really have no choice, I guess there isn’t much that you can do about it. But, if there are any other options at all, you should explore them first.
Options to Avoid These Horrible Loans
1. Sell something on ebay – you may not have time to wait 7 days to sell something and collect the money. But, if you do, consider this route.
2. Have a yard sale – Like most people, there is a good chance you have a bunch of stuff that you do not use or want anymore. Even though you may think it has no value to anyone, you won’t know for sure until you hold a yard sale. You might be surprised at what happens.
3. Go to a relative for help. I know this option may be hard, but your relative is not likely to shark you for 15% , 20%, 30% percent or more. They are also not likely to ask for your car title as collateral.
4. Sell on CraigsList – the listing is free and you can often attract local buyers and you may not have to wait as long for a payment as you do with ebay.
Be safe when meeting potential buyers on CraigsList, particularly if you are female. Try to meet the buyer in a public place and bring the item with you. There are plenty of legitimate buyers out there but you have probably also heard the CraigsList horror stories too!
After The Crisis Is Over
I am sure that you do not want this type of situation to ever happen again. If you have experienced it even once, you did not like it! That is virtually guaranteed.
It is time to troubleshoot the problem and take steps to make sure it does not happen again.
If you are having chronic cash flow problems, try to figure out where the problem is in your finances.
Are you spending too much on entertainment and ‘going out’? If this is the case, the pain of cutting back a little is far less than being sharked by one of these greedy pay day loan companies!
Are you frequently hitting unexpected expenses that just don’t fit in your budget? If so, you need a strong backup in savings.
Most experts agree that you should have 3 to 6 months worth of salary in savings to get you through unexpected hard times.
Unfortunately, that is not realistic for most people. But maybe it is realistic for you to have $3,000 in savings. Start small and grow it from there.
If the United States of America’s government cannot live within a budget, you can bet it is hard for individuals too.
I know it is hard to save. But, if you can manage even a little, it will be to your benefit later.
There is no way we can foresee every little thing that can happen in life. But it is likely that sooner or later, we all run into some unexpected expenses. We should be prepared for this to happen.
I hope that the next time you run into a problem, that you will have the savings to overcome it without having to resort to a ridiculously high interest loan from a company that cares nothing about your problems or what happens to you.
You can fight back by building up your savings to prevent them from taking advantage of you again.
If The Problem Is Drug or Alcohol Related
Obviously, you have big problems if this is what is driving you to payday loans. Please get professional help right away.
If you need motivation, read the stories at https://www.DrugAbuseFocus.com – they might quickly help you focus on the destructive nature of of addiction and help you realize that you MUST do something to destroy the addiction quickly.
Payday loans are less than desirable with terrible terms and high interest rates. If you can avoid taking one out, do it.
These should be a last resort option for you anyway. I would rather skip a bill or two and pay a late fee than to take out one of these horrible “loans”.
This is just some general information about pay day loans. For specific information for your situation, please contact a professional such as a law attorney or accountant for specific help.