Have you or someone you know been a tough financial situation and needed cash fast? What were your options: Max out your credit card or borrow from friends and family?
While these options really aren’t appealing, they are the only choices that some people feel are available to them.
But what happens when those options aren’t available anymore? It’s in these times when one gets desperate, and sadly, that’s when predatory lenders seem like “Saviors” when in reality they are wolves in sheep’s clothing.
Our video on Predatory lending shows how convincing loan sharks can be and how you can avoid their schemes.
Highlights to remember:
1. Everyone should have an emergency savings fund.
Being prepared for the unexpected provides peace of mind and wallet, especially in your time of need. An emergency savings account can help you get started.
2. The interest rate on a payday and title loans are insane!
The average interest rate on a payday loan in Missouri is 455%. That is astronomical! You end up paying back so much more with interest and/or late fees.
3. It’s a vicious cycle that seeks to keep one trapped in an endless cycle of loans and debt.
GreenPath Financial Wellness says, “The average payday loan borrower pays $574 in fees over the course of the year.”
Sir Francis Bacon’s famous quote, “Knowledge is power,” rings true in this case against predatory lending. There are ways to avoid predatory lending, and you can speak with one of our trusted financial advisors to learn more.
What has been your experience with predatory lending?