Payday loans might not be as secure as you think

WISCONSIN – With record unemployment figures, many are feeling pressed for money. A payday loan may seem like a quick and easy way to get money fast, but experts say to be careful as it could end up leaving you in a worse situation.

Jim Temmer, president / CEO of Better Business Bureau Serving Wisconsin, said the BBB has received thousands of payday loan complaints nationwide.

“Most importantly, people didn’t realize how much it was going to cost. There are people who take out a lump sum and the interest rate is so high before they realize it that they owe three times what they took out, ”Temmer said.

Temmer said there was no cap on interest rates for payday loans in Wisconsin.

“The interest rate on these payday loans can reach 500% and most people don’t know it,” Temmer said.

To help you make ends meet, the BBB said it is considering these alternative options: renegotiating current debt with lenders, taking out a personal loan from a bank or credit union, using a cash advance by card. credit or borrow on your 401 (k).

“Don’t ignore the people who are trying to collect your bills and try to work with them to avoid needing a payday loan,” Temmer said.

Temmer said if you must use a payday lender, never pay an upfront fee, limit the amount you borrow, and read the fine print.

“Know your rights, know what you’re getting yourself into, and only use them if it’s your last chance,” Temmer said.

Finally, Temmer suggests slowing down, taking a second to do your research, and check out the business rankings on the BBB website.

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About Judith J. George

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