Other loans that can fall into either the secured or unsecured category are payday and tax refund loans. There is no physical asset that is put up in order to achieve the loan, but instead the pledge of a future cash flow. For an example, usually with a payday loan, you would write a personal check for $115 to borrow $100 for 2 weeks or until payday. The annual percentage rate in this example is around 390%. If you borrow $5000, you’ll pay back $5750 or $750 of interest for on only a 2 week loan. Its highway robbery! Payday loans are illegal in some states.

Another high cost way to borrow money is a tax refund loan. This type of loan gives you an advance on an anticipated tax refund. The APRs in some instances can be over 700%. If you are short of cash, payday and tax refund loans should be your absolute last resort when every single other option would not work for you. Even a cash advance on your credit card may cost less and we would never even suggest taking a cash advance out either.

At S.J. Packman & Associates, before we make any recommendations, our attorneys, certified debt specialists, and paralegals, are trained to ask the right questions to find out about your specific situation. Based on your current income and your financial hardship, we will determine which course of action will work best for you. We do not only offer one path, as there is no one process that can solve everyone’s needs. We will take our time with you and help evaluate what your best course of action should be. Call now and one of our advisors will be there to get you started on your path to financial freedom. There is no obligation to enroll, so don’t delay.