The long-term effects that short-term loans can cause
LAREDO, TX. (KGNS) – The holidays have left many people strapped for cash and looking for ways to make a quick buck.
A quick fix some people use to solve their money problems are short-term loans.
While this might remedy the situation, it can also create headaches for those who haven’t read the fine print.
It is the most wonderful time of the year and also the most expensive.
Money for food, gifts, and decorations has really left some people in a bind for money.
So naturally, they are looking for the fastest way to make money and turn to emergency loans, title loans or payday loans.
Jason Meza of the Better Business Bureau says that when it comes to loans, it’s important to know which ones to avoid and find the one that’s financially best for you.
Meza says that when getting these types of loans, always recognize the dangers of high interest rates, short repayment terms, and the consequences of default.
The best way to know what you’re getting into is to ask the lenders questions upfront or read the fine print.
Meza says consumers need to read contracts better and see something that can be buried like a prepayment clause or something that will be a penalty if you pay in advance.
According to Meza, loan seekers should also beware of scammers.
The easiest way to spot one is when you are approached by phone or online as well by what they are offering you.
When we asked Laredoans about their experience with short-term loans like title loans, many said they were either a bad thing or a scam.
Whatever your reason for getting quick cash, keep these things in mind to make sure you don’t fall into a financial hole.
If you have been involved in a short-term loan scam or know someone who has, you can report it to the Better Business Bureau or call the police.
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