The long-term effects that short-term loans can cause
LAREDO, Texas. (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 people use to solve their money problems are short term loans.
While this can remedy the situation, it can also create a headache 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 lending, it’s important to know which ones to avoid and find the one that’s best financially.
Meza says that when getting this type of loan, you should always recognize the dangers of high interest rates, short repayment terms and the consequences of non-repayment.
The best way to find out what you are getting into is to ask lenders questions ahead of time 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 up front.
According to Meza, loan seekers should also be wary of scammers.
The easiest way to spot one is when you are approached by phone or online also by what they are offering you.
When we asked Laredoans about their experience with short term loans like securities lending, many said that they are not a good thing or that they are a scam.
Whatever your reason for getting cash fast, keep these things in mind to make sure you don’t fall into a financial hole.
If you’ve 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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