But beware of low introductory interest rates offered by mail. These rates often skyrocket after the first few months. Don't apply for credit cards to get a free gift or a discount on a purchase. Steer clear of blank checks that financial services companies send you. These checks are cash advances that carry an even higher interest rate than typical charges.
People can get deep in debt when they take out a loan against their paycheck.
They write a postdated check in exchange for money. When they get paid again, they repay the loan, thus the name payday loan . These loans generally come with very high, double-digit interest rates. Borrowers who can't repay the money are charged additional fees for an extension, which puts them even deeper in debt. Borrowers can continue to pay fees to extend the loan's due date indefinitely, only to find they are getting deeper in debt because of the steep interest payments and fees.