People flush with cash need to proceed with caution

People flush with cash need to proceed with caution

In addition, more than 150 nonprofits affiliated with Working Cars for Working Families offer low-interest loans, matching funds for down payments and even free cars for those in need

People who don’t have much money during the rest of the year can become big targets during tax refund season.

For those living paycheck to paycheck, tax refunds – which average around $3,000 – may be the largest chunk of unobligated cash they see all year. Retailers hope to get some of that money, but so do debt collectors, buy-here-pay-here car lots and purveyors of interest-free loans that come with fat fees.

Collectors step up calls and mailings during tax season because they know more people “will have some extra cash to address past problems,” says Michael Bovee, president of debt settlement company Consumer Recovery Network in Spokane, Washington.

The newest incarnation – the “interest-free tax refund loan ” offered by tax preparation services – may not be as benign as it seems

“Use tax time as leverage (by telling) a debt collector the offer you are making is as good as it gets, and it could be another year before you have anything extra in your budget,” he says.

Many old debts have been sold to collectors for pennies on the dollar, which people may be able to settle for 20 to 50 percent of the original amount, Bovee says. Read more

Q4. Is Online Lending Better Than Conventional Lending?

Q4. Is Online Lending Better Than Conventional Lending?

You can get an emergency loan for anything that you need and almost every situation that can happen. For instance, people usually get emergency loans to pay medical expenses after an accident or in medical condition. If you were rushed to an emergency room or you had an unfortunate event, such a loan can cover your medical costs on time.

If you worry that you won’t be able to pay the bills or utilities on time, then you can get an emergency loan to cover it. Paying the utilities on time is essential, and it can also affect your credit score. Read more