In Dead End Loans You’ve Got To Avoid: Part 1 and Part 2, you had a chance to see the bad side effects of pay day loans, car title loans, credit card cash advances, casino loans and pawn shop loans. In part 3 we are going to cover other kinds of loans that may end up leaving you worse than where you started.
- Overdraft Loan – If you have overdraft protection from your bank, you can basically overdraft as much as the bank allows for a hefty fee. The fee per transaction usually runs anywhere between $29 and $35 dollars per overdraft occurrence.
- Installment Loan – Installment loans are similar to payday loans. Borrowers are able to get anywhere from $200 to $1000 often in just 24 hours. The interest fees are astronomical, but unlike payday loans, payments usually stretch out over 6 to 12 months. If you default on these loans, the lender may take out a huge sum from your checking account. For many, this can be over half of their paycheck. Many times the payments seem to never put a dent on the loan balance.
Avoiding the loan types listed in this three part series is the most ideal way of protecting yourself from getting into a financial nightmare.