If you’re struggling to pay your bills, you might consider a payday loan, but be careful!
Despite some recent reforms, many of these loans still come with high fees and very high interest rates. The good news is that there are alternatives, and as Consumer Reports explains, all you have to do is know where to look.
The pandemic has really exacerbated problems with payday lenders, especially for people in low-income and black communities. As a result, there has been a push to offer them better and fairer banking services.
What can you do now if you need emergency money quickly? First, find a community development financial institution in your area. They are financial services providers like banks or credit unions whose mission is to bring financial services to low-income communities, places that many traditional banks have largely excluded.
Joining a CDFI can be affordable. They offer banking services for no or little cost with an initial deposit of just $ 25.
Another avenue loan seekers can take is to find a nonprofit organization with a payment facilitation program. For example, Exodus Lending is a nonprofit that is committed to helping people get rid of their payday loan debt. These groups consolidate your loans with no fee and 0.0% interest.
When you end up going to a payday lender, it is important that you know the laws in your state. If you have any questions or concerns with a lender, visit the California Attorney General’s website to learn more here.