photo credit: TheTruthAboutMortgage.com

Bankrate has another good article about the worst ways to borrow.

• Payday loans - This is one of the worst of the worst.  The interest rates are exorbitant (often in the triple digits) and this makes it very hard to pay these off.  Of course, the loan company will keep rolling the old loans into new loans in order to separate you from more of your hard-earned money.  I would advise against these at all costs.
• Car title loans - Similar to payday  loans, these loans usually come with high interest rates.   And even worse than the payday loans, if you don’t pay, they can and will repossess your car.  What’s more, after they sell your car to pay off your loan, they are not obligated to give you any money earned over your loan amount.  Let’s say you default on a title loan for $1000 on a car worth $4000.  They will repossess your car, pay the loan and leave you with nothing.  No car or the money the car was worth.  And how will you get to work?
• Refund anticipation loans - Now that the IRS will direct deposit your refund, this is even more of a ripoff.  You pay a sizeable fee for the ‘privilege’ of getting your money a week sooner.  It’s just not worth it.  Start planning ahead now so that you won’t get a large refund.  You can have that money in hand now.  There’s no point in giving the government an interest-free loan.

These are just the first three on Bankrate’s list of bad borrowing.  Read the article for the rest.  Have you fallen prey to any of these loans?  If so , what are you doing to pay them off?