It can be easy to think that paying bills is more important than
anything else. This is why many people choose to take out loans to
pay them with. This is not a sensible idea as they will end up
costing more in the long run. However, if you have no other options,
then there are certain types of loans that should be avoided at all
costs.
Payday Loans
Payday loans may seem harmless
enough, like DirectLenderPaydayLoans.com. You just borrow a small
amount of money to keep you going until you next get paid, when you
pay it back. If you can pay it back, although it will cost you, they
are okay. However, if you cannot pay the loan back then the trouble
starts. You will be charged fees and the interest rate may go up and
the costs can add up to a lot of money.
Overdraft
An overdraft can seem very simple. If it is authorised, then it
will not cost that much. However, if it is unauthorised you could be
charged on a daily basis. Even an authorised overdraft can be
dangerous though because you can easily not pay it off and then the
costs can mount up. You are not expected to pay it and so money will
not be demanded and unless a pay check goes in, then it may be easy
to just leave it there gaining interest.
Logbook Loan
A logbook loan will give you money based on the value of your car.
The car will be used as collateral though and so if you do not make
the repayments on the loan it could be taken. This could mean that
you will not be able to get to work and you could lose your job.
Borrow from Friends and Family
Borrowing from friends and family may seem like a cheap and easy
way to get money. However, if they are suddenly short of money then
it can put a strain on your relationship with them as they may want
it back and you may not have it.
It can be better to phone the people you owe money to and see
whether you can pay them less than you owe for a while. Find out
whether you can take a payment holiday or whether they have any ways
that they can make repayment easier. See whether you have anything to
sell to make the money that you need or try to earn money elsewhere
before resorting to these types of loans.
So agree with calling to see if you can lower payment. Usually, if they know times are hard, they will work with you.
I remember my son taking out a title loan to my horror! Though he was able to pay it back in 3 weeks, he was charged over $200!! I don't think he will ever do that again and many of these loans are scary as well. But I do understand that in these tough times why ppl have no other choice sometimes.
those payday and title loans are such rip offs!