|
Be careful about giving out any personal or financial information. Simply entering information on the site may put you at risk of identity theft. Selling personal and financial information is big business. (Even if you never hit "Submit" to complete the transaction, your information can be captured through “keystroke logging” – a program used to see and store everything you enter on application).
Many websites that advertise payday loans are not lenders. They are businesses known as “lead generators,” which make money primarily by finding customers for lenders.
Lead generators will collect your information – including your Social Security and checking account numbers – and then send your request for a payday loan to a network of lenders.
To avoid getting trapped in a cycle of debt with payday loan, or check-cashing businesses:
-
Consider a small loan from a credit union. Some banks may offer short-term loans for small amounts at competitive rates. A local community-based organization may make small business loans, as well. A cash advance on a credit card also may be possible, but it may have a higher interest rate than other sources of funds: find out the terms before you decide.
-
Contact your creditors or loan servicer as quickly as possible if you are having trouble making a payment, and ask for more time. Many may be willing to work with you if they believe you are acting in good faith. They may offer an extension on your bills: Find out what the charges are for that service. There could be a late charge, an additional finance charge, or a higher interest rate. But it still may be less than the payday loan interest rate.
-
Make a realistic budget, including your monthly and daily expenditures, and plan, plan, plan. Try to avoid unnecessary purchases.
-
Try to build some savings, small deposits do help. A savings plan – however modest – can help you avoid borrowing for emergencies. Saving the fee on a $300 payday loan for six months, for example, can help you create a buffer against financial emergencies.
-
Find out if you have – or if your bank will offer you – overdraft protection on your checking account. If you are using most or all the funds in your account regularly and you make a mistake in your account records, overdraft protection can help protect you from further credit problems.
|
