Should Check Cashing and Payday Loans Be an Option

Lately people I'm need have sought to borrow from payday advance companies. However, if they don’t manage to pay back the loan within the short amount of time given, the borrower risks getting presented with additional fees on top of the initial loan fee. These fees end up rolling over, causing the client to re-borrow accruing interest on top. According to the Consumer Financial Protection Bureau, almost a quarter of initial payday loans end up being re-borrowed.

When the borrower accrues late fees resulting form not having enough money available in their bank account, the lender will then try and cash your check or electronically withdraw from your account, causing bank over draft fees. This revolving door of debt has been known to damage perfectly good credit scores.

It is common that everyone at some point might need a cash fast loan. Collateral lenders like pawn shops have been known to offer less risky alternatives to supplement times of need.

Gems N' Loans in Escondido can offer interest rates as lows as 2% on any article of value, to cover the loan amount the borrower might seek. The pawn broker can easily buy the item outright, avoiding the contractual stress, or simply allow the owner of the item to pay the loan off over time. In the worst case scenario, the borrower may lose the item should they default on the agreement. This however, will not effect your credit score or bank account.