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Borrow now ... Pay later?

With prices of gasoline, groceries and other expenses on the rise, Shoals residents are finding their money disappearing quicker, and some are looking at different options for raising fast cash.

New payday loan businesses continue to open in these uncertain economic times, but experts warn borrowers to know exactly how a payday loan works before forging ahead.

"I've heard all the reasons for needing some quick cash," said Michael Owens, manager of Alabama Title Loans on Woodward Avenue in Muscle Shoals. "One guy who works in Huntsville came in needing just $100 for gas."

Owens said Alabama Title Loans typically does its best business at the end of the year as customers seek money for holiday purchases. Owens said that most years, the tax season slows business, and then customers start returning around summer as vacation season kicks in.

It was different, this year, however.

"This year it didn't stop," Owens said. "Steady business with a small dip for tax returns. I'm back at my Christmas numbers."

Payday advance loans can be a valuable way to manage an emergency. But if the borrower is not careful, quick loans like these can create a cycle of debt that is difficult to break. In hectic times especially, it is important to make good choices for managing and paying debt.

"We got $200, and only have to pay back $220 in two weeks," said Timmy Brigner, a customer at Advance America, another payday loan business. "Gotta pay the bills."

There are many alternatives to payday loans such as small savings accounts or rainy-day funds, salary advances from employers, credit card advances, extended repayment plans with creditors, and loans from friends, relatives, religious institutions or social service agencies. In addition, many lenders have developed lower-cost alternatives to payday loans that have better repayment terms.

No matter which solution is chosen, read the fine print and understand the ramifications of the debt, along with the fees and costs that are associated with that debt,

Source : http://www.timesdaily.com/