No matter how careful you may be with your money, there are times when sudden, unavoidable expenses can arise, screwing up a budget and possibly leaving people scrambling for cash. This commonly arises, for example, with accidents/injuries that trigger expensive medical bills or even with vehicles when breakdowns or malfunctions lead to pricey fixes.
If you find yourself in any situation where you need some extra cash ASAP, there can be a number of options out there… but, not all of these options are good. In fact, some may end up plunging you into serious debt very quickly.
Below, we’ll point out what some of these bad options are so you can avoid them.
When You Need Cash, Avoid…
- Payday loans – Expensive and potentially risky, payday loans basically offer people a sum of money for the short term at steep interest rates. For instance, someone can be loaned a few hundred dollars, the repayment of which is due in 30 to 60 days at rates as high as 100 to 200 percent of the loan. If borrowers are not able to repay these loans in full when they are due, the amount of debt owed can snowball out of control.
- Car title loans – These are another risky option for cash, as they require borrowers to put their vehicles (and possibly even other assets) up as collateral in exchange for some sum of money. Again, if borrowers can’t repay the debt when it’s due, they will lose their vehicle (and other assets). For people who depend on their cars for work, this could be a catastrophic loss.
- Tax refund anticipation loans – With this option for money, people basically agree to sign over their expected tax refund in exchange for a percentage of that refund now. Although this could be a viable option for cash for borrowers who are positive they will get a certain amount back as a refund, it can end up being a poor choice if people get less than expected – or no refund whatsoever – as they will then be on the hook for repayment at very high interest rates.
Rather than opting for any of the above options for cash, instead, consider:
- Getting a loan from a credit union or bank where you will likely be able to get far better interest rates.
- If you can’t wait for this loan approval process, ask your employer for an advance on your paycheck.
- Consider asking a friend or loved one for a loan.
- Figure out if you may need help dealing with your other debt, rather than acquiring more, by contacting a debt relief professional ASAP.
Contact a Denver Bankruptcy Lawyer at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust the experienced Denver bankruptcy lawyer at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services.
To learn more about your best debt relief options, as well as how we can help you, contact us today by calling (303) 839-8888 or by emailing us using the drop-down contact form at the top of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.