For people out there who are seeking credit card debt help , one of the temptations is to take any offer that comes over the table. To be sure, there are plenty of loan types that look good, but never materialize in the way that people would have hoped. Payday loans, auto title loans, and tax refund loans all purport to provide quick money for people in need, but these loans come with heavy costs on the back end.

Payday loans

These loans are often called cash advance loans and they are highly regulated in most states. Even with this regulation, they are not good for credit card debt help . These loans provide people with money for a short time period while they wait for their next paycheck. The money comes quickly, but there is a big cost. These companies often charge as much as 300% to 400% APR for the loans. This means that you will pay back a heavy chunk in one month when you get your paycheck. The problem, too, is that these loans can begin to grow when you start deferring them.

Auto Title Loans

Car title loans are similar to payday loans in that they provide emergency cash. Borrowers put their car title up as collateral for a loan. This might not be smart for most people because their car is an essential part of getting to work, carrying their family around, and everything else they might do. These loans usually come with a 25% to 30% interest rate over the course of one month. That price is very high just for a short-term loan, and it is not the smartest way to cover costs. The better plan, of course, is to have some money saved to handle emergencies.

Tax refund loans

The tax refund loan provides money within a few days of filing a tax return. This is used to get your refund money before the government sends it to you. The interest rate here can be up to 40%, which is a heavy price to pay for getting money a few days early. The smart play is to avoid these loans and wait things out.