Lockout Loans: A Football Player's Version Of The Pay Day Loan.

charlie sheen loanSeptember 4, 2012 The Buffalo Bills released Vince Young from their team this past week prior to the start of the regular season. However, this isn't the first time Young has faced a period of time without pay. On August 10, 2012, TMZ reported that NFL quarterback Vince Young took out a "lockout loan" of $1.69 million back in May 2011 when the NFL was going through a lockout and no players were being paid. Pro Player Funding specializes in short term loans to professional athletes. These loans are very similar in terms to those offered by pay day loan centers. For example, Young's loan was written with a 24% interest rate and Pro Player Funding could demand immediate payment in full, plus interest, if only one payment was missed. In 2012 Pro Player Funding claimed that Young defaulted on the loan. Both Pro Player Funding and Vince Young have taken legal action in regard to this matter.

Payday loans
Have you ever been short on cash and needed an advance? Perhaps one of the worst things you can do is to go to a payday loan office. Yes, you will receive money right away but the interest rates they charge are outrageous. This example from Wikipedia says, "For a $15 charge on a $100 2-week payday loan, the APR is 26 15% = 390%".

If you truly need money immediately, a better option may be to approach your boss or human resources manager for a payday advance. Most likely your HR representative has been approached before about this subject and will have a written company policy on the matter. Some companies are more lenient than others, and you may be asked the reason for the advance. Some companies reserve paying in advance only if the employee is facing a financial emergency. The advantage of getting an advance from your employer is that you will most likely not be charged any interest.

Bigger problem
The news stories reported that it was Vince Young's financial advisor that persuaded him to take out the loan, and not Young himself. However, seeking out a short term loan to replace a regular paycheck usually indicates you are having money troubles at home. The truth is there are plenty of times a financial crisis comes up because of a lack of planning and budgeting. Even if you are not spending money on luxuries or desires life seems to have a way of getting your money. The car breaks down, the kids need shoes, or the gas prices went up. A better plan is keep track of your expenses and income, plan for out of the ordinary expenses, and write a budget for the next month.

 
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