Audio Transcript Auto-generated
- 00:01 - 00:04
as the saying goes, cash is king, We all need
- 00:04 - 00:07
it. Sometimes we're in a crunch and the bills pile
- 00:07 - 00:07
up on the kitchen table.
- 00:08 - 00:10
You may be tempted to find a quick solution.
- 00:11 - 00:13
Something to keep the creditors from calling or sending threatening
- 00:13 - 00:17
letters. What if your solution quickly turned into an even
- 00:17 - 00:18
bigger problem?
- 00:19 - 00:22
What if your american dream became a waking nightmare?
- 00:23 - 00:25
Flex loans are unsecured lines of credit.
- 00:25 - 00:28
Like a credit card, flex loans are easier to get
- 00:28 - 00:30
for people with limited or below average credit scores.
- 00:31 - 00:34
This makes flex loans a viable and tempting solution for
- 00:35 - 00:37
someone in a pinch who's already struggling to make payments.
- 00:38 - 00:39
But there's a big catch.
- 00:40 - 00:43
Unlike a typical loan, a borrower can repeatedly borrow up
- 00:43 - 00:46
to the spending limit, in essence returning to the watering
- 00:46 - 00:50
hole to drink over and over again, as many times
- 00:50 - 00:53
as needed, Effective interest rates can reach as high as
- 00:54 - 00:59
279%. Imagine What if for every dollar you were given,
- 01:00 - 01:02
you had to pay back nearly $3 to whoever lent
- 01:02 - 01:02
it to you.
- 01:03 - 01:06
In this way, flex loans can create an even bigger
- 01:06 - 01:08
trap than the one you were hoping to avoid in
- 01:08 - 01:09
the first place.
- 01:10 - 01:13
Most people who take out flex loans only do it
- 01:13 - 01:14
because they think it's their last option.
- 01:15 - 01:18
In fact, legislators and creditors often talk about what a
- 01:19 - 01:22
great service flex loans are, how they're providing a need
- 01:22 - 01:24
to people who otherwise would not have access to money
- 01:25 - 01:26
but don't be so easily fooled.
- 01:27 - 01:29
Look at flex loans for what they are an opportunity
- 01:30 - 01:32
for creditors and lenders to trap you in an ever
- 01:33 - 01:36
increasing amount of debt, creating an even worse scenario for
- 01:36 - 01:38
you and your family's financial well being.
- 01:39 - 01:40
There are other ways out of debt.
- 01:41 - 01:42
None of them involve an easy fix.
- 01:43 - 01:45
And the pressure to pay off debt and stay afloat
- 01:45 - 01:47
is a natural and honorable one.
- 01:48 - 01:49
But just make sure that while you're searching for a
- 01:50 - 01:53
solution, you don't inherit an even bigger problem than the
- 01:53 - 01:54
one you first went in with.