Consider a Personal Loan Before Taking Out a Payday Loan

It’s easy to get stuck in a paycheck-to-paycheck cycle, especially when you’re in debt.

And, unfortunately, there are quite a few debt traps out there that only make things worse.

Payday loans are aninfamous debt trap.

If you feel short on options, consider a personal loan first.

Yes, you still have to pay them back, but interest rates and fees are generallymuchlower.

Those who borrowed from a credit union or community bank paid only $13 under those same terms.

Of course, it’s easier to take out a personal loan if you have good credit.

The bottom line is, it’s worth a try.

Payday loans are designed to keep you paying interestsome of them have rates of up to 500-600%.

Look at all of your options before making that decision.

For more detail, check out NerdWallet’s full post.

Personal Loans Cost $446 Less Than Payday Loans| NerdWallet

Photo by401(k) 2012.