PREDATORY LENDING

We've all heard of debt and we've all heard of the quick fix options to get out of debt. But are they really as good as they seem or are they too good to be true?

How often have you picked up a magazine because the cover was awesome but you start reading and the content isn't what you expected at all? It's the same thing with loan offers. Sometimes they appeal to the eye and you quickly go and apply for the offer, however, you don't take the time to read the details and when you finally do, and you realize it's not what it seemed.

In this episode of "it's A Money Thing," Jen learns the risks involved with those "Quick Cash" offers and how it's important to read the fine print... Even if it involves a magnifying glass. 

There are sharks all around looking for easy ways to collect YOUR money! Don't let them take advantage of you. There are many others way to get the money you need without burying yourself in debt.

Set up a payment plan with creditors—the best alternative to payday loans is to deal directly with your debt. Working out an extended payment plan with your creditors may allow you to pay off your unpaid bills over a longer period of time.

Credit union loan—Credit unions typically offer affordable small short-term loans to members. Unlike payday loans, these loans give you a real chance to repay with longer payback periods, lower interest rates, and installment payments.

Consumer credit counseling—there are numerous consumer credit counseling agencies throughout the United States that can help you work out a debt repayment plan with creditors and develop a budget. These services are available at little or no cost. The National Foundation for Credit Counseling (nfcc.org) is a nonprofit organization that can help you find a reputable certified consumer credit counselor in your area.

Emergency Assistance Programs—many community organizations and faith-based groups provide emergency assistance, either directly or through social services programs for weather-related emergencies.

Cash advance on your credit card—Credit card cash advances, which are usually offered at an annual percentage rate (APR) of 30% or less, is much cheaper than getting a payday loan. Some credit card companies specialize in consumers with financial problems or poor credit histories. You should shop around, and don’t assume that you do not qualify for a credit card.

You are in control of your financed not let anyone tell you different and don't get caught up with the Sharks. There are many alternatives to high-cost borrowing so take the time to explore and ask questions!

^Alysha