The problem is fueled by last minute shopping, which is very common here. Over 60% of Americans wait until the last week before Christmas to do their shopping.
This is not a choice caused by laziness or procrastination, but by a poor economy. People simply require as much time as possible to put together extra money for gifts. Up to 15% of people will have to sell personal items in order to have money for presents!
Payday Loan Dangers Rear their Ugly HeadsWith time running out, the desire to spoil your loved ones is strong. Because of that, thousands of people who would never ordinarily take a payday loan make that choice.
A smarter choice would be to skip the holiday altogether, or to do your shopping at the dollar store, or even take the money you have and set it on fire. That’s right, burning your will still be cheaper and more productive that risking the payday loan dangers!
How payday loans work is by giving you a small amount of money, and then charging you hundreds if not thousands in interest and fees.
Some payday loans carry up to 2000% APR, with new fees and charges being added on every single time you get a paycheck! You may think you are borrowing $300, but end up paying thousands of dollars over the life of the loan!
Avoid the Payday Loan Dangers!
If money is tight and you do need to take out a loan, start with a bank or a credit union. If they move too slowly for you, look into online installment loans.
These loans, while also expensive, have all the fees and payments locked in up front, so you will never have any surprises.