The long term effects that short term credit can cause
LAREDO, Texas. (KGNS) – The holidays have left a lot of people looking for money and ways to make money quickly.
A quick fix that some use to solve their money problems is short term loans.
While it can help, it can also be a headache for those who haven’t read the fine print.
It is the most beautiful time of the year and also the most expensive.
Spending money on food, gifts, and decorations has left some people really in a bind.
Hence, of course, they are looking for the fastest way to make money and turning to emergency loans, title loans, or payday loans.
Jason Meza of the Better Business Bureau says when it comes to credit it is important to know which credits to avoid as well as to find the financially cheapest credit.
Meza says that with such loans you always recognize the dangers of high interest rates, short repayment times and the consequences of non-repayment.
The best way to find out what you are getting yourself into is to ask questions of the lenders beforehand or read the fine print.
Meza said consumers need to get better at reading the contracts and seeing something that can be buried, like an early withdrawal clause or something that is a penalty if paid in advance.
According to Meza, loan seekers must also beware of scammers.
The easiest way to recognize you is if you are approached by phone or online, also by what they are offering you.
When we Laredoans asked about their experience with short term loans like title loans, many said they were not a good thing or a rip off.
Whatever your reason for getting some quick buck, keep these things in mind to make sure you don’t get into a financial hole.
If you’ve been involved in a short-term loan scam or know someone who has done so, you can report it to the Better Business Bureau or call the police.
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