Sunday, January 4, 2009

AVOIDING PITFALLS IN HARD TIMES



Pay Day Loans

In these hard times, I know there are a lot of things that tempt us. Planning for dire unemployment in the United States is going to make us more and more desperate. Here is one thing to avoid on your journey through this recession.


Pay Day Loans: I know it can look so inviting. Why not? Get your cash quickly. All you need is a job and a checking account. But realistically it's a trap as expensive as the sub-prime mortgages have been to low income consumers. Pay Day Loans prey on the poor. If you are planning to be unemployed soon don't make the mistake of trying to live with weekly Pay Day Loans or monthly Pay Day Loans, because you are in store for owing more then you have to. Typically most Pay Day Loans charge between 400% and 900% per check. If you have employment, but you are poorly paid, this can be devastating. Some of us don't think about the next week. We think of what is due this week: our phone bills, our gas bills, our medical bills.


Let's say you are over-drawn in a checking account, and get a Pay Day Loan to cover the penalties the bank issues on your account. What about the other bills you must pay? If you are use to budgeting your money, you know how much extra you have every week. For the poor there is little or none extra. (I know because I have been there) So saying you live from check to check, Pay Day Loans are just a burden. If you know that you will have nothing lift after you get your check, what do you think a

Pay Day Loans will do to your weekly average figuring in all the interest they take out. You could lose $200 to $400 a month.Pay Day Loans is a vicious circle that gets you further into debt. It is not the direction someone should take if you worried about today's employment situation.



Until next time, Courteous navigator.

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