It is very important to understand Consumer debt and how you can become financially secure. The most common forms of consumer debt are credit cards and payday loans but there are some other forms. Credit Cards and Payday Loans are unsecured loans and often have higher interest rates than your typical secured loans like car loans and mortgages. Why do payday loans have higher rates? Well payday loans are not secured against a home or a car and there is much more risk to the lender — so lenders charge higher rates to help mitigate the risk.
It is also very important to keep credit card and payday loan debt under control as it can add up over time and become a burden to you and your family. PLEASE use these loans as intended; as a short-term solution for emergencies only.
By only using payday loans sparingly you can keep your overall debt low and thereby become more financially secure. You can then spend your money on things that your family needs or wants, such as cars, homes, vacations, etc.
If for any reason your debt becomes to much of a problem for you, there are resources that can help. Consumer Credit Counseling can be of great help. Consumer Credit Counselors help educate consumers on avoiding incurring too much debt and how consumers can pay off this short-term debt. Please look up the nearest Consumer Credit Counseling service in your area.