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What should you consider when taking out payday loans and cashadvances?
Too many folks rush into taking paydayloans and cashadvances without any thought
at all. That can be a huge mistake. As with buying any other product or service,
it's a good idea to consider some basic facts about it to ensure that you get an
acceptable deal.
Start by asking yourself if you can think of options besides
payday loans. You are trying to meet your immediate needs at the lowest possible
cost. Why shell out APRs of 300% or more
when you can get funding for less? To get some useful
pointers on this, check out this article for
alternatives to
payday loans. The information there can seriously slash your costs - perhaps
by 50% or more.
Given that cash advances cost so much, it is only logical that
you should do a bit of comparison shopping. You can find differences between
providers. Although you will not find a truly low cost deal, even shaving off a
few percentage points can mean more money in your pocket at the end of the
month.
Run a check with your local Better Business Bureau as well
BBBOnline. Are there a whole bunch of complaints against the payday loan company
you're considering? If so, its time to look for other providers.
The cash advances lender should be willing to give you a
complete breakdown of the charges involved. It is surprising how many folks
willingly sign contracts without a clear picture of this basic information.
Here's a page that has a
checklist of 10 things to
consider when taking payday loans. Do read thru it before you finalize your loan
provider. You may be able to avoid many of the pitfalls associated with this
kind of borrowing. Go through this cash advance checklist now.
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For further reference:
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THE DEBT CYCLE: USING PAYDAY LOANS TO MAKE ENDS MEET
In February 2002, the National Endowment for Financial Education and the Consumer Federation of America co-sponsored a forum entitled "The Debt Cycle: Using Payday Loans to Make Ends Meet." ... of America (CFSA), the trade association for the payday loan industry, classifies its customers as follows. ... a lawyer for the payday loan industry cited his clients' market as ...
Consumer Federation of America -- THE Consumer Resource for Consumer Information!
Welcome consumers! This is your source for consumer information! Founded in 1968 to advance the consumer interest through advocacy and education, the Consumer Federation of America is a non-profit association of some 250 pro-consumer groups.
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... of Legal Loan Sharking: A Report on the Payday Loan Industry. Payday paycheck loan companies are a ... Extensive research on the payday loan industry has revealed ultra high interest ...
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Cash advances checklist
More info on cash advances:
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