Avoid the Pay Day Loans

Pay Day Loans can often seem appealing, a $!00 advance on your monthly pay packet for $115 later seems like an appealing prospect, after all $115 advance could save you a $30 bank charge for exceeding your overdraft.

Payday loans are however a big mistake for most people, especially if you can get a normal loan.

Pay day loans tend to charge obscene interest rates, the average being 391% in America, with some in poorer areas charging an amazing 1000% interest over a year.

Compare this to a loan where you will pay at most 14%, or credit cards where you will rarely see above 21% and suddenly you can start to see why payday loans are a really bad idea.

If you went to a shop would you pay $0.35 for an apple or $3.50?

It really is a no brainer, avoid the payday loans, they are a rip off and they do make it incredibly easy to fall into a debt spiral.

Debt Consolidation - Be Wary of Interest

Debt Consolidation has a huge amount of benefits, but as with many financial deals out there you will find a huge array of companies who are simply out there to rip you off.

It is important to note that when you first start looking for a loan to consolidate your debt there are a huge amount of debt consolidation companies out there just waiting to grab your cash. These companies tend to focus more on the 'One Easy Payment' rather than 'Low Monthly Payment' aspect of the debt consolidation.

So be warned, Debt Consolidation is Not Always Good. But do not be disheartened, getting past the poor companies and finding the better ones does not take long, and sometimes it may be best not to approach a company offering this service and instead take out a loan directly from your bank. Bank loans often have a much lower interest rate and by taking one out direct you can save a LOT of money. It does however mean you have to do a little work, paying off your debts to other companies and so forth manually, but in the long run it can save you thousands upon thousands of dollars, pounds or whatever your local currency is!

The important thing to look out for is what they charge. Many will offer a low interest rate but give you a hefty management fee every year, others simply have an insanely high interest rate which only ever really exagerates your debt problems. Keep looking and soon enough though you will find some very good, very cheap debt consolidation options to make your life stress free once again.