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Financial binds can trap anyone, but before you go out looking for a loan there are some options you may never want to consider. In Dead End Loans You’ve Got To Avoid: Part 1, we covered payday loans, car title loans and tax preparer loans. Now in part 2 we are going to cover some other kinds of loans you may want to avoid.
- Pawn Shop Loan – Many pawn shops will take personal items such as jewelry and other valuable merchandise and use it as loan collateral. If the loan isn’t paid in time, you run the risk of losing the item all together. The interest rates can be very high and people sometimes end up paying more than the market value of the property.
- Credit Card Cash Advance – These loans can feel so easy because they are instant, but the interest rates and other fees are high.
- Casino Loan – Some casinos offer interest-free lines of credit that can only be used for gambling. If you lose more money than you can afford while gambling, they can place a lien on your property.
In Dead End Loans You’ve Got To Avoid: Part 3, you’ll see other financial instruments that you’d be better off staying away from.