Working Twice for your Paycheck
Many of us have found ourselves driving to the local supermarket or shopping center and have noticed business signs saying payday loans, paycheck advance, cash in 10 minutes, or you could get $1500 in just minutes. Sound farmiliar or even tempting? Have you ever gone to one of these payday advance locations or even looked for them on the internet? If you did, you may have had the intention to pay them off immediately. Also these payday advances are secured loans because your paycheck is the collateral or “security”, which cannot be consilidated with a debt management program.
Many people are now getting pulled into these payday advances which can spiral into a very bad cycle causing you to have to take one to pay another and another to pay the one you took to pay the original. On top of this the advance companies charge an incredible interest rate some reaching as high as 999.99%. This may seem impossible, but it is not. If you are thinking about one of these companies to help you get by or help with an emergency, think before you act. You might need the money right now, but make sure you always exhaust ALL of your resources before resorting to one of these payday loans.
What you need to know is that these companies were started in low-income neighborhoods with founders describing the business as a “vacuum” to take money from individuals that could not handle the advances. These companies have drained the low-income areas and have moved to middle-class regions and are now feeding on them. Also if you are one of those individuals that are looking for one of these loans on the internet, be very careful. The interest rates imposed on the loan may not be regulated by your state. The state that the company resides in regulates how much they can charge in interest.
Rural areas and the internet have become so saturated with these businesses that you can now find debt relief programs online that specialize in helping people get out of payday advance debt. If you find yourself in trouble with these companies act now and get yourself back on track. There are many great companies out there with low fees and will help you settle out of these debts for pennies on the dollar. These programs are specifically for payday advances and are not debt management programs for unsecured debt consolidation.
This article should not have to be written and money hungry individuals who take advantage of honest hard working people shouldn’t be allowed to peddle their crooked services but people need to know. The most important idea here is to not get trapped. The next time you are driving somewhere and see a fancy payday advance sign remember that if take one of these offers you will have to work twice for your paycheck. Make sure you have checked with your bank or credit union for short-term loans, borrow from friends or family, take back pop cans, round up change from your couch and car seats, take unwanted items to a pawn shop, hold off on a payment till next check, or maybe even have a yard sale before your paycheck is gone before you get it.