How to avoid falling into the pay-day loan trap

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And animation -- don't flying around me forever to do it yeah you know you're such an artist.

Well here's a shocking -- a new study shows nearly half of Americans.

Have more credit card debt.

An emergency savings and when money's tight where more people are relying on.

She eighty payday loans which can sometimes have interest rates sky high -- 500%.

That's -- going to the -- to get money.

So how can you avoid falling into that payday loan -- joining us right after.

Nashville is first offense finance guy Dave Ramsey they keep ahead of the shady deals -- do that.

While -- want.

I used to remember it is kinda like going of the dock for the shady deals with a back Alley with a guy who hadn't shaved in three days he's payday lenders this is the -- of the scum of the financial world.

There's a 500.

That 800%.

Interest rate.

And it's the whole thing is based on a hot check you know it's based on -- you going to write a check.

Weeks in advance and they hold it for two weeks you write a check for two -- For -- dollars they give you a 180 dollars and so you're paying 10% interest for two weeks.

It's a it's a ridiculous concept and it keeps the -- or OK so you had some.

Alternatives.

Well obviously the basic common sense things are you know you've got to get on a written plan and you got to sell some stuff to break the cycle of this.

And then make a list of your debts smallest to largest and begin to attack.

Most of the time what happens in the -- a little lonely world.

Is that people are just disorganized they haven't stopped and thought and they're living -- the crisis.

And they fall prey to this it should be your stuff though right you shouldn't sell other people's stuff without telling them about -- problem.

-- worried about selling some Gretchen Ted jets for extra money have you how much money and -- haven't thought it might still believe me.

There's imagine jewelry -- located just instant I didn't get -- that you -- have a written budget.

Well absolutely got to have a written game plan that's part of getting organized.

And giving every dollar an assignment every dollar a mission before the month begins.

And that what you could see if there's going to be a shortage and if you've got to have a broad sailor take an extra job or you know it's so one aggressions head shots -- -- -- -- The pilot kinda -- an -- -- could you send a little memo to the senate to to have a written budget.

Are -- tried but I've given up on them honest open and I think -- depressing -- -- the third alternative is the debt snowball.

Well and that's where you start working your way out of that so that you have more money monthly you simply -- debts smallest to largest and attack them.

In that order and minimum payments on everything but the little one and attack that smallest one and not get out.

All right so that's -- one thing to do we -- items that need to money now.

Especially people got all this stuff got destroyed and sandy which is based steel was up and down the northeast coast.

And they checks aren't there yet so they going to these places on high interest rates because they needed right away.

Well a lot of people fall -- the you know emergency crisis to crisis situations because they didn't have.

That emergency fund they didn't have that umbrella to be ready.

And you know the other thing is you can always stop and look for extra work there's and when there's a crisis there's a lot of people need labor -- -- -- so there's a lot of different things you can do to gather money up other than falling prey to these things because this is really a death cycle of money the payday lenders from and you got to stay away from.

All right good advice coming from Dave Ramsey personal fine.

Thanks much have a great rest of the week.

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How to avoid falling into the pay-day loan trap

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