Chapter 5. The Danger of Quick Fixes

Never spend your money before you have it.

Thomas Jefferson

When you try to solve your financial problems, you will come across a number of seemingly quick and easy solutions that promise fast cash and credit. These promises will bombard you through a flood of television commercials, radio commercials, newspaper ads, flyers, billboards, and the Internet. Desperate for cash, the ads and commercials sound great. But these alleged solutions are dangerous and fraught with risks. Remember, if it sounds too good to be true, it probably is. Beware of quick and easy fixes; they don't exist. The following story is, unfortunately, not unusual.

Katie's Lesson

Katie Silver needed some extra money for a trip to New York City to attend a friend's wedding and buy a present. Every day on her way to work, Katie drove by a storefront with a sign that read "Get Money Fast: No Credit Check." She especially liked the "no credit check" part because she feared the review of her credit score, so she decided to stop in.

Katie walked out of the store with $400. She had paid a $50 fee for the loan and given them a check for $400 that she dated for the next Friday when she would get her next paycheck. She knew the interest rate and the fees were high but she knew she'd have the money to pay back the loan on her next payday.

Katie enjoyed the wedding more than she could have imagined, so she spent an extra night at the hotel and dined with both old and new friends the next night. ...

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