COVID-19 pandemic highlights dangers of payday loans

The coronavirus pandemic has caused some of the highest unemployment rates in recent history, and some families are turning to payday loans online.

MACON, Georgia – The coronavirus pandemic has caused some of the highest unemployment rates in recent history. Families are struggling and some are turning to online payday lenders for help. The economy is slowly reopening, but that doesn’t mean families aren’t always in financial trouble. Some might think that help is just a click away, and you can find payday loan companies online, but beware.

“Even though Google and Facebook have stopped these kinds of businesses from advertising on these platforms, they still succeed and people get these loans, and some of them charge 500% interest and what don’t is a disaster, ”Rosenberg said. Financial advisor Sherri Goss.

There are two popular types of loans that offer quick cash. A payday loan is a short term loan of up to $ 500. They are marketed as a short term cash advance until your next paycheck.

In Georgia, the law says you will pay 10 percent. It’s not cheap, but you could pay a lot more if you go online. There are other loans over $ 3,000. By law in Georgia, you cannot pay more than 33.9% interest. Other states may charge you a lot more.

Goss has this advice: “If they have bad credit and can’t go to a bank or a credit union, they should contact finance companies here in the state of Georgia.

RELATED: Recession Hit United States In February, Halting Record Expansion

RELATED: 1.9 Million Calls For Unemployment Aid Even As Reopenings Slow Layoffs

RELATED: Survey: 2.76 Million Layoffs In May, Far Less Than Expected

RELATED: Debate In Congress Over $ 600 Unemployment Aid Heats Up As Demands Rise

RELATED: Warner Robins Hit Record Unemployment in April

RELATED: Warner Robins Records Record Unemployment in April

RELATED: ‘Just a Dead End’: Warner Robins Man Opens Up About His Problems Getting Unemployment Benefits

STAY ALERT | Download our FREE app now to receive the latest news and weather alerts. You can find the app on the Apple Store and google play.

STAY UP TO DATE | Click here to subscribe to our Midday Minute newsletter and receive the latest headlines and information in your inbox every day.

Do you have a tip? Send an email to [email protected], or visit our Facebook page.

About Judith J. George

Check Also

Are payday loans safe? Here’s how to protect yourself

Can online payday loans be safe? Even though it may seem easy and convenient to …