We all need extra money some time, especially for situations we do not expect which require more money than we currently have. When people need a 1500 loan, they go to the bank or various financial institutions. Fortunately today, there are lots of loans today which people can apply for; however, not all types of loans are good for everyone. There are loans which should be avoided like the plague for various reasons. Here are the loans, which experts say, will place a great financial burden on followers.
Advance Fee Loan. This loan requires borrowers to pay an upfront fee to get the loan they want and this can easily amount to a couple of hundred dollars. There are many scammers in this area. They will just grab your upfront fee and then run away so borrowers need to be very careful about this loan. Some lenders who do not run away after getting the upfront fee will charge you astronomical interest rates.
Payday Loan. Not all states have payday loans. Georgia payday loans are prohibited by law. Payday loans have high interest rates and they should be paid back on the very next payday. People who cannot pay their loans on the next payday often renew their loans. There is no interest rate but there is a fixed rate for every $100 borrowed. For example, some lenders charge $30 for every $100 borrowed. When you compute all fees, you will see just how insane the amount becomes.
Finance Company Loan. Finance companies make high-interest loans which might be too difficult for them to pay back. Lenders also misguide people into acquiring loans in exchange for cars, homes, jewelry, furniture and many more. There are lots of details in fine print which people hardly notice.
Tax Refund Loan. This is also known as the tax anticipation loan and the instant refund loan. This is loan which is borrowing against a person’s subsequent IRS tax refund. A lot of people make this loan. This loan is not for amounts higher than $5,000.