I could come up with a boat full of excuses as to why you should take out online cash advances and avoid late payments, but if I don’t understand your financial situation I may not be helping you at all. Some people get caught up with the excitement of fast money with no credit bureau checks. The idea that there is a place to go to get quick cash help puts a blind eye towards the terms and conditions. While they sign, there is little to no thought about what is going to happen once the pay date arrives.
Cash advances are short-term loans averaging 2 week terms.
Anytime you are using third party money, there always needs to be consideration of the final cost. Credit card debt often extends for years and the final cost of a purchase grows and grows. Payday loans, cash advances and title loans grow very quickly if kept out for a long period of time. Short-term loans are just that, loans which are expected to be paid off fast. They provide quick access to cash but also demand full payment in a short-term. Unfulfilling the contract will make the loan more difficult to pay off.
Think about the aftermath before you take out cash advances.
- These loans carry high interest rates. The numbers used to be shockingly high as compared to credit cards, but even their numbers have reached cash advance levels and sometimes higher.
- The short-term loan will add this interest every few weeks. The longer the loan stays out, the more you pay. Reports about high APRs are true if the loan was supposed to be carried out over years. Get the loan paid off on time or within a few months in order to be cost effective.
- Hidden fees no longer apply to responsible lenders. Find a lender who is willing to disclose all fees and interest costs of the loan. Be careful in your search for a good lender, they are out there unwilling to bend from their best practices. This safe approach to lending benefits the lender and the borrower as tough as it may be to have your application rejected.
- Quite a few states have either banned or heavily restricted short-term loans. Know what your state regulates. If you try to find a lender who will not observe the state’s ruling, you WILL find them, but there may be a price to pay for it as well. Find a trusted direct lender.
- There are many stories about aggressive lending and collection practices which stem from short-term loans. Collections laws have kept the honest lenders in check, but you still have to be leery of ones located out of the country as they are not obliged to follow any of the rules set up to protect you, the borrower.
Know your financial situation. Don’t let a company cloud your judgment by suggesting any type of third money usage is better than another. In fact, don’t trust any of them. It is not all about the cash advances or payday loans, credit cards or secured loans, but rather about your income and living within your means. Protect your finances the best you can and go into third party money transactions with both eyes open.
