Consumers Try To Take Control Over Debt

When the economy starts slowing down, more people start becoming desperate for money, and when desperation turns to actions, that are when problems can start.

Faxless Payday loans operations operate by loaning an amount of money, usually anywhere from $100 to $1,500, to individuals on a short-term basis for a fee.

"A lot of people are hurting," said Karen Atwood, CEO of Consumer Credit Counseling Service in Waterloo, which also runs a branch office in Marshalltown. "A lot of people are having problems finding money for basic things."

That means they can be more susceptible to scams.

"In times like these, especially when people lose their jobs, they may be attached to get rich quick and work at home schemes," said Bob Brammar, a spokesperson for the Iowa Attorney General's Office, which has a division for consumer protection, "That's not to say there is anything widespread like that going on in Iowa right now. We don't have empirical evidence of any type of uptick."

Further, that does not mean that all work-at-home programs are illegitimate. But there are many which are not.

What can make things even more difficult during times of economic slowdown are the holidays and winter, Atwood said.

Atwood said when people have trouble meeting their basic needs, they may turn to other types of solutions - ones that may take care of the short-term problem but leave a big problem later on. Credit cards and instant payday loans options are just a couple of areas where people can get into trouble.

"You don't want debt for ongoing expenses," Atwood added. "The money you have coming in should pay for ongoing expenses."

Payday loan operations operate by loaning an amount of money, usually anywhere from $100 to $1,500, to individuals on a short-term basis for a fee. This fee, if translated into an annual percentage rate, would be extremely high.

The problem with payday loan locations is that sometimes people get into a trap.

"People should really stay away from them for the very fact that 99 percent of the people who use them, use them many times over," she added. "If you're part of the 1 percent who use them once it's not a problem, but that's usually not the case."

"We have a credit counseling office in Marshalltown. You should stop at that office and see Mark or Theresa and they will help you figure out what to do," she said. "If we can pay your creditors and get them to agree to a repayment plan, we'll do that. Plus, we can provide you with some information about managing money. We should control our debt. It shouldn't control us."

Source: timesrepublican.com