In Missouri, Residents Educated About Cash Loans as Holiday Shopping Kicks Off
By Paul RizzoPayday Loan Writer
Like most shoppers, Linda Lanham knows what it’s like to feel the pressure of the holidays.
“You want to find the perfect gift and the perfect meal and sometimes your expectations of the holiday does not fit your budget,” said Lanham.
She knows how shoppers can be easily tempted by payday loan companies looking to take advantage of the financial strain caused by the holidays.
“People get desperate. There’s a lot of us that live payday to payday and anything can throw you into despair and you’re going to look for the quick way out,” she said.
This time of year, faxless payday advance companies offering that quick way out are working even harder to get people to sign on the dotted line.
“We’ve seen advertisements for holiday spending or loans that might be available that aren’t currently available the rest of the year,” said Tonya Collister of Consumer Credit Counseling Services.
Collister calls these savings account payday loans abusive. She came to a forum on predatory lending on Monday night to help educate Springfield residents about the dangers of payday, car title and other quick loans.
“The companies that offer that type of loan are going to charge higher interest rates,” she said.
On average, those cash advances charge 400 percent interest rates. Collister says a far better option is saving throughout the year for Christmas, making homemade gifts or explaining to your family why you’re cutting back.
“Spend what you can but don’t go out of your way to make it an extravagant Christmas if you can’t, and remember the real reason for the holidays,” she said.
