Beware of Pay Day loan rip offs
and
Cheque cashing services. The Federal Government has introduced legislation lowering the maximum interest rate specifically in order to curb these bandits. Both charge outrageous, probably illegal fees. Pay-day loan sharks can be accused of charging annual rates of interest as high as 360% for advance loans, which is why several class-action lawsuits are now swirling.
Some credit card issuers face lawsuits over gouging rates on cash advances. Both rip off the poor and leave them in worse shape than before. If you need to use a pay day loan service, you are already in deep financial trouble and need to get help... fast. | |
Danger signals The following are some of the most common danger signals that individuals need to recognize and address before their financial difficulties become serious problems:
- I am afraid to answer the phone because it might be a collection agency calling.
- I am spending 20% or more of my take-home pay on loans and credit card payments.
- I go over my spending limit or use credit cards as a necessity rather than a convenience.
- I only make the minimum payment on my credit card balances.
- I have received second notices about overdue accounts.
- Creditors have threatened to sue, repossess my personal property or hire a collection agency to recover their money.
- My wages are being garnisheed to pay for outstanding debts.
- I borrow money for household expenses from friends and family to make it from one pay cheque to the next.
- Utility companies have cut off service because of outstanding bills.
- I pay one creditor one month and another the next because there's not enough money to pay both.
- I pay excessive interest or service charges because I don't pay bills on time.
- I am renegotiating loans to cut monthly costs or looking for a consolidation loan to pay off old bills and a few new ones.
- I am looking for a consolidation loan to pay off other consolidation loans.
- Financial problems are affecting my health, job or marriage.
If you answered yes to any of the previous statements, you have financial problems and are heading
for trouble. The longer debt is ignored, the worse it gets and the more difficult it becomes to fix problems. |
