Be wary of easy credit and rapid instant loans

We have now been in the pandemic for almost two years. It has been a heavy burden on individual and family budgets. While people are increasingly able to find work and wages seem to be improving, expenses are growing at a faster pace than income. 

Our budgets are taking a beating, considering:

• The cost of groceries has increased considerably
• The price of gas at the pump has reached new heights
• The cost of electricity has also been growing every year
• The funds households must pay for rent or mortgage
• The cost of clothing
• Used and new vehicle values

As you can imagine, financial situations are changing on a day-to-day basis.

When stuck in a hopeless situation, many people turn to the internet in order to find what they believe to be temporary or short-term solutions to their problem. 

The lure of instant loans with no credit checks is increasingly attractive. The number of lenders offering microloans is growing. People who are struggling are tempted to take out a loan or resort to that type of lender from time to time.

Other institutions—other than conventional banks—even advertise on radio and TV during prime time.

Although people believe their situation is temporary, it is not, or, at least, it won’t be; the interest rates and hidden fees on these loans are exorbitant. We have seen a $6,000 loan growing to a total cost of $12,800 over four years! 

Resorting to rapid loans, loans without credit checks, instant loans, easy loans, or other loans of that nature is a sign that it’s time to come see us in order to avoid worsening your situation, which is typically what would happen. 

When savings are not enough to cover unexpected costs, expenses become impossible to manage despite cutting back on spending.  It’s important to resist attractive offers. Instead, consult a professional who can look at the range of options available based on the current situation.

We will address the effects of mortgage refinancing in another post.

To regain control of your budget and escape the spiral of debt, give us a call at 877-489-2696. Or make an appointment for a free virtual or in-person assessment by visiting ginsberg-gingras.com/en/book-an-appointment/.