Texecutions

Main Menu

  • Home
  • American politician
  • Businessman
  • U.s. president
  • Us governor
  • United states stock market

Texecutions

Header Banner

Texecutions

  • Home
  • American politician
  • Businessman
  • U.s. president
  • Us governor
  • United states stock market
United states stock market
Home›United states stock market›Experts urge avoiding payday loans

Experts urge avoiding payday loans

By Daniel D. Burke
July 20, 2022
0
0

BATON ROUGE, La. (WAFB) – As we see the highest inflation in four decades, you’re trying to stretch your budgets, but financial experts are encouraging any option to help pay the bills except a payday loan.

A payday loan might sound great because it’s basically instant cash when you need it, but with an average interest rate of 391%, that quick cash can take you down a heavy debt road.

For comparison, APRs on credit cards can range from around 12% to around 30%. If the loan is not repaid in full on the first payday, a fee is added and the cycle repeats.

So, within a few months, borrowers may end up owing more interest than the original loan amount.

“So you can really end up in a cycle of debt because there’s so much to pay back,” said Andy Mattingly of Forum Credit Union. “Then you constantly borrow every week or every two weeks. So you can just step into that cycle, and you can’t walk away from it.

Payday loans are generally short-term, high-interest loans that are usually due on your next payday. Experts say these should be your absolute last resort and even personal loans are a better decision.

Personal loans work for certain emergencies, like a car repair that costs a few thousand dollars. With personal loans, you may have 12 to 24 months to repay. Consider going through a credit union for low interest loans.

Or consider offering a side hustle or temporary second job. Every little bit counts when trying to manage your money and increase your income.

“There is a real problem that needs to be fixed and this extra income for two months, one month can actually solve that problem,” said Peter Dunn, CEO of Your MoneyLine.

To be proactive, try to keep your expenses to a minimum right now, especially if your budget is already quite tight. You might be tempted to make these impulse purchases at retail stores with decent deals on clothes and furniture. If you don’t need it, don’t buy it.

Click here to report a typo.

Copyright 2022 WAFB. All rights reserved.

Related posts:

  1. Banks led S&P 500 to all-time high even as analysts expect volatility for the remainder of 2021
  2. Cherry d’Argand Partners achieves successful IPO
  3. US stock market earns $ 6 billion as Facebook and Apple climb
  4. Daily Market Commentary – Dollar on the offensive ahead of NFP; OPEC + decision postponed

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • March 2021

Categories

  • American politician
  • Businessman
  • U.s. president
  • United states stock market
  • Us governor

Recent Posts

  • The Chinese people are really tired of Washington’s narcissistic spectacle (Global Times editorial)
  • Should you ever get a payday loan?
  • Gubernatorial candidate quickly wraps up interview with committee investigating Jan. 6 attack
  • Shropshire businessman returns rare car to his home after 80 years and 9,250 mile journey
  • US House panel has right to see Trump’s tax records and court rules
  • Terms and Conditions
  • Privacy Policy