Tough Times Call for Common Sense (Part II of III)
Another way that predatory lenders get you is to offer you a
title loan. This beauty is their way of putting your vehicle
up against a certain amount of money. Now, if you are
already paying off your car this is not really an option
anyway, but let’s say you borrow $100 and use your car as
collateral.
You then sign over your title loan to the lender, and if you
miss a payment – or cannot repay the loan when it is due,
they can take your car. Let’s say your car is worth $5,000?
It doesn’t matter, they can take what they want, when they
want.
There is also the idea of Rapid Refund Services. These are
simply brilliant. They know that people need their tax
refund usually as soon as they can get it. However, they
also know that some people just can’t wait for it to come
in. So they give you the money up front and then you give
them the refund when it actually comes in. Usually they
charge you for filing your return, and they charge you for
loaning you the money – usually to the tune of somewhere
between 20 and 200%.
If there is an error in their calculations, and you don’t
get as much – too bad, you still have to pay it back as well
as the interest. There are reputable companies that will
help you file electronically, but you won’t get your money
right away. Find them at CenterForProgress.com.
Next Time: Renting to Own and No Payments Until…
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