Talk about giving industry a bad name!

I worked for a mortgage lender until quite recently and I used to be shocked at fees that brokers charged their clients. I mean lets put this whole "mortgage arranging" thing into perspective.

Assume I am meeting a client today. The guy walks into my office and sits down and has a chat with me about getting a mortgage.

It appears that he is not a "clean" client as he is suffering from a few credit problems. Well, I stroke my chin and let out a couple of sighs but wait, I CAN HELP HIM.

I tell client that it is going to be difficult but I think I can help him. There may be a few "fees" but hey, at least he is going to get a mortgage and that is all he cares about isn't it?

First thing to consider -- do you really need that cash advance? Sure, you need cash right away, but have you looked at other options? The fact is, a payday loan is an extremely expensive source of funds, with Annual Percentage Rates (APRs) ranging from 300% to 1000%. So before you take one, see if you can arrange money by taking an advance from your employer or from your credit union.

You could also consider borrowing money from friends or family. Depending on your situation, credit card funding might be an option too, because it’s usually cheaper than a payday loan. Be careful with this alternative, though.

Ask yourself how much you can really repay when next payday rolls around. Work out an exact number you can commit to. Take a cash advance only for amount you can repay, including all charges that apply. Obtain funds from other sources for any additional requirements you may have.

Here’s why. If you choose to roll over all or part of payday loan, you end up paying much more -- additional charges, late fees, etc. Your APRs start climbing rapidly and you may even find yourself trapped in a vicious cycle of payday loan debt. Stay clear of this trap.