The long-term effects short-term loans can cause
LAREDO, TX. (KGNS) - The holidays have left a lot of people strapped for cash and looking for ways to make a quick buck.
A quick fix that some use to fix their money problems are short-term loans.
While it can remedy the situation, it can also create a headache for those who didn’t read the fine print.
It’s the most wonderful time of the year and also the most expensive.
Money for food, presents and decorations have really left some people in a bind for cash.
So naturally they look for the fastest way to make money and turn to emergency loans, title loans or payday loans.
Jason Meza with the Better Business Bureau says when it comes to loans it’s important to know which ones to avoid as well as finding the best one that is financially suitable.
Meza says when getting these types of loans always recognize the dangers of high interest rates, short repayment times, and the consequences for not repaying.
The best way to know what you’re getting yourself into is by asking questions to lenders up front or by reading the fine print.
Meza says consumers need to get better at reading the contracts and seeing something that can be buried such as an early pay off clause or something that will be a penalty if you pre-pay.
According to Meza loan seekers need to also beware of scammers.
The easiest way to spot one is when you’re approached by phone or online also by what they’re offering you.
When we asked Laredoans about their experience with short-term loans like title loans many said they are not a good thing or that they are a rip off.
Whatever your reason may be to get quick cash, keep these things in mind to ensure you don’t fall into a financial hole.
If you’ve been involved in a short-term loan scam or know of someone who has, you can report it to the Better Business Bureau or call the police.
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