So payday is next week, but you’re thinking “I really need cash today”. When that happens, some people turn to payday loans.
Don’t do it.
Imagine you need to borrow $100 for two weeks. Typically you’d write a check for $115—repaying the $100 loan and then a $15 fee to borrow the money.
When payday comes, the payday loan place could cash the check and you’re done.
But what if you can’t pay it back by then? They’d roll the loan over for another $15 fee. That means you’ve just spent $30 to borrow $100 for a month.
And if you have to roll it over again ;the problem just compounds very quickly.
The government says the annual interest rate on these loans averages 339 percent. That’s a big number.
So remember you do have other options:
- Borrow from a family member or friend.
- Get a personal loan where you do your banking.
- Ask creditors on other loans to cut you a little slack.
- Even a cash advance on a credit card will cost you less.
Remember, when you’re short on cash, some lenders are not your friends.
Do us a favor please. Tell your friends about us so they can be smarter about their money too.