Cash Pay Advance

The offers sound enticing, but financial counselors encourage people to do their research before taking out a payday loan, also known as a cash advance. Bobbie Shaffett, family resource management specialist with the Mississippi State University Extension Service, said finance charges for these short-term cash loans may result in interest rates from 390 percent to 780 percent. Shaffett said the annual loan volume is estimated at more than $40 billion nationally, with consumers paying loan fees in excess of $6 billion. They are attempting to increase awareness of issues such as payday loan pitfalls, identity theft, senior adult concerns and fraud. Shretta Varnado, an Extension area family resource management agent in Pike County, said many people become trapped in loan agreements that compound existing financial problems. Find Out More

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