PayDay Loans, Check Cashing places, Pawn Shops - Intro

If at all possible, and you should, avoid them. These organizations are setup to make as much money as possible off of desperate people. For example:
+ PayDay loans will cost you around 400% interest by charging you a flat fee plus interest.
+ Check cashing places are no better, they charge 5% to 10% interest for every check you cash with them. 5% of a $600 check comes to $30 and if you get paid every other week, that comes to $780 a year.
+ Pawn Shops are notorious loan sharks. You give them something of value and in return they give you a short-term loan. For example: you have a ring, they look it over, decide how much they can sell it for and make you an offer. If you decide to take the offer, you are loaned the money for two weeks to a couple of months, depending on what the item is. If you return to claim it, you are charged the full price they can sell it for and sometimes a little extra. If you don't return, the pawn shop puts it up for sale.

All three of these companies, online or not, prey on people who for whatever reason can't get a loan and are in need of cash right away. It is always best to avoid these places, they only rip you off and keep you dependent.

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