Try to avoid high interest loans

Try to avoid high interest loans

RICHMOND, Va. (WWBT) - Two-thirds of Americans are living paycheck to paycheck-- according to a survey by Charles Schwab, and many turn to high-interest loans when emergencies happen.

Sometimes it’s those online payday loans-- where the interest rate is 700%.

Many experts tell us to steer clear.

They tell us over and over it’s the last place you want to go.

There are better ways to stay afloat. It starts with getting a thousand dollar emergency fund going.

Make it your number one goal.

Once you have a thousand in savings-- work to turn that into 3 to 6 months of expenses.

Millions also turn to nonprofit credit unions which often offer better loan terms than a bank.

If this happens over and over-- consider a credit counseling service. Most are free and will work with you by phone or online.

But again, the best way to prepare for an emergency is to get that minimum of a thousand in savings.

It could save you when you least expect it.

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