Financial Institutions : Panacea for financial malady in Massachusetts
Massachusetts has gained a worldwide recognition and the states exquisite resources attract tons of crowd. People from all over the world come for education, jobs and knowledge, strides all around the cities precipitously and aid to the reason why state is very expensive. Exacerbated tax rates had made the life of people worse. Residents have to pay more tax on goods and services; government is always looking for new ways to tax people. According to national center of health statistics, state has the highest suicide rates .In 2016, nearly 45,000 people killed themselves reason being, un-diagnosed mental disorder, academic pressure, job and financial problems; suicide rates are still skyrocketing. Why is it so? State where nearly 92% of urban population has four year college degrees and impressive critical thinking would come up to this? It’s a shame! The study also reveals that two-third of the suicides are because of financial problems? What could be done to stop this? Inflation has succumbed people. This is the reason people head up to take loans in order to make their life bit easy.
Why are Payday loans banned?
Massachusetts Payday Installment Loans
Payday loans are illegal in Massachusetts under small loan act. The reason being simple, online payday loans come up with high interest rates and fees which can slide you in an infinite cycle of debt. People go for other alternative solutions such as installment loans which are very much affordable and have low rate interests and come up with its benefits.
Short term loans
Auto title loans and installment loans are other alternative to meet the financial exigency.
Installment loans as the name suggests has to be paid back over a period of time agreed upon. The amount of monthly installment is fixed and it depends upon for how long the loan has been spread. If the time period for the loan to be repaid is more than the monthly installment is of less amount but eventually the interest increases and you end paying more.
As compared to payday loan, the interest rate of installment loan is less. The money as in payday loan, has not to be paid in lump sum, it can be paid in monthly installments. So it is more convenient. The shorter the period of length, more will be the monthly installment but in long run it is beneficial as the loan will be repaid in short period of time, thus less interest to be paid.
More alternatives to payday loans Massachusetts
Negotiate with the lender
If you plan to take loan to repay the previous loan, then the better option is to negotiate with the creditor and ask for more days to pay back rather than taking one more loan.
Use credit card to take cash advance– If the line of credit has not been exhausted by you then you can ask for some hard cash to be used. This cash advance which you get against the credit card can be used for the purpose for which you planned to take a fresh loan.
Ask for help from friends and family: Ask for loan from your friends or from your family member, if you are caught in the tight spot. To them you need not give interest you can just pay the principal amount.
Approach Welfare Scheme: There are many welfare schemes run by the government, if there is some concern that can be solved, one must avail that the help rendered.
Thus the financial help at the right moment can help someone save his self- respect, dreams and what not.
