We’ve told you – a payday loan is better
For payday loan customers you know and those you just haven’t met yet, listen up. Now’s the time of year when people are thinking about their tax returns. Considering how difficult the economy has been lately, they’re also thinking about how they’re going to stretch between paychecks after the car finally breaks down. Some might think that tax refund loans are a good idea simply because it’s tax season, but you know better. Payday loans are MUCH cheaper; you don’t need the expense of tax refund loans right now. Factor in that the stimulus check amount that will be taken away from your tax refund this year to begin with, and you have something to scream about. But not if you use faxless payday loans in a pinch.
Tax refund loans? Just say “nay”
Ed Brayton of the Michigan Messenger writes that Michigan wants to crack down on tax refund loans. A bill has been introduced in the state legislature that would not only require full disclosure of loan terms, but also of alternatives. Bill sponsor Rep. Rashida Tlaib (D-Detroit) calls tax refund loans “loans riddled with interest rates and hidden fees. By regulating RALs to include strong disclosure, taxpayers in Michigan will be able to make informed decisions when applying.”
Tale of the bill
Here’s what would be required of tax refund loans in Michigan if Tlaib’s bill passes:
- All interest, fees and hidden costs fully disclosed
- Clear language stating they’re loans, not refunds
- That the taxpayer can file electronically without applying for a tax refund loan
- Stating how long it might take for the government to process refunds
- That there’s no guarantee the refund will be as the consumer estimate
- That the taxpayer is responsible if there’s a difference not in their favor
So in addition to being more expensive than payday loans, it should be clear that tax refund loans are speculative. If you mess up on your return, you could owe a healthy sum. All told, are they worth the trouble if you need emergency cash and payday loans are easy to apply for through sites like Personal Money Store?
If you need assistance with tax trouble click tax resolution/settlement.
I work for a cash advance company. I see it all the time where people pay extra money to get their tax money early but wouldn’t dare come to us. It’s much cheaper to come to us and we don’t charge you take your own money.
I can’t understand why tax refund loans are popular. Clearly, people aren’t doing their research… just because H & R Block employees claim to save you on your return doesn’t mean they aren’t primed to take you with tax refund loans!
I have a few acquaintances that were absolutely desperate to get their hands on their tax refund. They were even willing to pay $300 just to get it ASAP. To me it’s a clear waste of money. I actually just heard about Turbo Tax and it sure sounds like a sweet deal. A friend of mine filed his taxes online through Turbo Tax and he received his ENTIRE tax refund. He did add that it took about a week for his money to hit the bank but it’s definitely worth it. He saved $300 just for being patient! So if you’re really in need of money, I suggest you apply for a payday loan. Most lenders charge $15 to $30 per $100 loan. It’s a better alternative compared to the price you pay for a tax refund loan.
I don’t know where these people are getting their Refund Anticipation Loans, because if you go through a reputable tax establishment, they have a protection plan. I did my own taxes for years, and I had no problems, but I went to H&R Block because they could get me a better refund. Not only that, but I got a RAL with protection, and I had my money in two days – about $800. I know other places offer them, but I wouldn’t get one unless I had people.