News

Guess what, readers!

I just got a letter saying that I was approved for a loan of up to $35,000!! Doesn’t this sound too good to be true? Well it almost always is.  This time of year, audiences are being flooded with advertisements for loans of all shapes and sizes through television, mail and even radio.  Get money now, pay for it later- how can you say no to that? Well, you really should read the fine print!  If you have PERFECT credit, which, after much discussion among our office employees, is nearly impossible, you may be able to get that low APR that companies are advertising, but most people are not that lucky!  In this recent letter I received, the APR is 6.78%.  Sounds doable, right?  Well if you are looking for a loan, you may not always have the best of credit.  That’s where these companies get you!  The very same letter that offered me 6.78% APR also mentioned, (in the fine print) that interest could go all the way up to 29.99%.  That’s quite a range, from 6.78% to 29.99%!  Essentially, what it is saying is that if  someone does have perfect credit, that perfect person would be paying back their $10,000 loan at $304 per month for 36 months.  Not so bad- after doing the math, that’s less than $1,300 in interest over three years.  But that’s where they catch you.  For those of us with not-s0-perfect credit, we could be paying FIVE times that amount in interest.

So this is our warning to you: If you feel the need to reach out for a loan during this season, ALWAYS read the fine print.  Keep yourself and your money safe during the holiday season!

For more information, visit our page on financial literacy under the resources tab.