If you are facing serious financial struggles, it might be tempting to look for a quick fix. Unfortunately unscrupulous lenders tend to prey on people in desperate situations and what might seem like a great idea when money is tight turns out to be a huge mistake. Quick fixes like check cashing and payday advance opportunities can add to your financial struggles and make your situation even worse than it is now.
What Should You Know about these Potentially Dangerous Lending Opportunities?
Check cashing establishments, which are often retail stores, cash checks immediately without your needing to have money to cover the amount of the check in your checking account. These are short-term loans and you are usually charged a small fee.
Essentially, you are writing a bad check to get cash, which could be illegal. It’s a risky means of obtaining fast cash and if the money is not in your account by the time the store turns the check into the bank, you are subject to fees and could face civil and criminal penalties. Some states even permit stores to seek punitive damages and you could face fines as much as three times the amount of the check.
Payday advances are legal, but put you at risk for digging yourself into a deep financial hole. Payday advances are also short-term loans that allow you to borrow at a high interest rate against your upcoming paycheck. You usually have 14 to 30 days to repay the loan and if the lender has direct access to your checking account, you have no way to avoid the payment when it comes due.
More information about Payday loans can be found on the Federal Trade Commission’s website.
When to Consider a New Strategy
For some, an occasional payday loan is the best way to obtain much-needed cash fast, especially if their financial situation prevents them from using a credit card. However, relying on payday loans on a regular basis is a sign you are headed toward financial disaster.
If you find yourself considering unconventional means of borrowing money on an ongoing basis, it might be time to assess your overall financial situation. If there is no end in sight to your financial woes, you need to consider more drastic options. At the very least, you should speak to someone about your situation and learn about your options. This way you can decide what to do next aware or your options and having a firm grasp on where you stand financially.
To learn more about the financial risks of shady lending practices or to speak with someone about your financial situation and what can be done remedy it, contact the Law Offices of Robert M. Geller at 813.254.5696.