We all go through financial hardships one time or another. Mortgage may be due or your lights may be about to cut off but choosing to go to payday lender SHOULD not be your solution.
Over and over, statistics show that payday loan companies aim to take advantage of poor consumers. You’ll seldom find any payday loan stores in the upper-middle class suburbs of the city, where borrowers could actually afford to repay the loans. Instead, you’ll find them in the poor and black neighborhoods of the city and near military bases. A 2006 report by the Center for Responsible Lending reveals a typical payday borrower ends up paying $793 in interest on a $325 loan. This lender doesn’t charge an upfront finance charge that high. Instead, the borrower pays that amount over a period of time by continuously rolling over the loan. Below are a few quick tips that should help you:
Tip 1: Seek wisdom concerning your finances. When you look in your hand and it’s not enough, that’s not your harvest, that’s your seed.
Tip 2: You should be building an emergency fund with at least $1,000. This is considered an EMERGENCY. Use any funds from that envelope during this time and rebuild when you can.
Tip 3: Talk to you employer about an advancement on your check. There should be not fees attached to that.
I know it may seem like there is no other option but take then time, think it through and find an accountability partner that can assist you with making that right decision. Always remember that the decisions you make today will greatly impact your tomorrow.
I want to hear from you! Have you ever been in a bind where you chose to go the payday loan route? Was it addicting? What adjustments did you have to make to not go that route any longer? Comment below.
Until next time…. be sure to flex your Financial Muscles!!