Avoiding predatory loans, building a stable financial future
Rachel and Ben, recent homebuyers in Austin, faced an unexpected $5,000 plumbing repair. Stretched thin after closing costs and tempted by the immediate access promised by payday lenders, they considered a high-interest loan. They were worried about their credit score and long-term financial health if they made the wrong choice.
Using Golden Door Asset's Payday Loan Calculator, Rachel and Ben saw the staggering APR of the payday loan - nearly 400%. We explored alternatives with the Loan Calculator and Personal Loan Calculator, finding a personal loan at 12% would save them thousands in interest. We also helped them explore a HELOC using the HELOC Calculator to cover the emergency expense from their home equity.
The Payday Loan Calculator instantly displayed the exorbitant APR of the payday loan, while the Loan Calculator helped illustrate the affordability of alternative loan options.
$4,200 saved in interest by choosing a personal loan over a payday loan, plus improved credit score.
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