Are you thinking about getting an payday loan online? Depending on your financial situation and how much disposable income you have on average each month, cash advance online may be the best help for you. There are many reports which present these short-term loans as predatory lending practices, but the entire picture is not painted. High risk loans such do not require credit checks and have higher fees and interest rates in order to help make up for the underlying costs involved. The cash advances are set up to be paid off in a short amount of time and many borrowers use the higher fees as an incentive to get the loans paid off quickly.
So what is the fuss over a cash advance online annual percentage rate?
Triple digit figures for annual percentage rates are reported to scare people off from getting a short-term loan. Payday loans and cash advances are constantly being barraged by negative reports on high APRs. How do they come up with those figures?
A payday online is a short-term loan. The average term for this loan is two weeks, so if $100 is borrowed and the fee is $15, the only way the triple digit APR can be reached is if it is stretched out over 26 times. Rolling over your loan for a full year will bring financial trouble. Remember, these loans are set up to be paid off in two weeks. Even if you can say that this is an accurate perception of how these cash advances should be looked at, there are other figures which can be looked at as well.
A $100 cash advance online with a $15 fee will run up a 391% APR. If you were to bounce a $100 check and be charged a bank and merchant fee for insufficient funds, charges of around $56 can be interpreted as an APR of 1,449%. Being late on a credit card payment with a $100 balance will bring a fee of $37 on average, which is an APR of 965%. Miss your $100 utility bill payment and have to pay a $46 late or re-connection fee can be interpreted as a 1,203% APR.
Now that you see how certain numbers can be interpreted if they get stretched out over the year, the cash advance online fees do not look that bad. The rhetoric behind the industry tends to be negative in order to keep people from using the short-term loans. In reality though, the cash advance online companies have helped many people who found themselves drowning in unexpected costs. Why is it unfair for people to attempt to make good on their payments with these short-term loans during a stressful time? Is it better for all the other creditors to continue adding their fees onto balances and charging interest month after month? It is ultimately up to the consumer how they want to utilize their options. Cash advances online do not solve debt problems, but instead create opportunities for patching up smaller problems before they balloon into long term problems.
Spotya.com believes in both responsible lending and borrowing practices. We will refuse to approve a loan if qualifications are not met. There are many customers who use our services to keep themselves out of further financial debt.
