Are you falling into that cash advance debt trap again? What exactly is it about online cash advances which promote debt and why do so many people fall into their traps? You could start an answer by talking about how not all cash advance lenders are aggressive or target customer for failure, or you can get to the main problem that people need options to help them with their cash flow.
Is a cash advance lender forcing debt onto innocent consumers?
There are predatory lenders out there who are targeting financially vulnerable people with promises of quick money without defining the payoff expectations. So what is the debt trap so widely publicized and criticized? It starts with a person who is too far in debt, too little income, or for the most vulnerable, those who fall into both categories. Emergency expenses pop up at any given time and when there is no money to support payment people turn to quick money options. There are lenders who will loan money to just about anyone who asks. Therein lays the debt trap problem. Many lenders will deny applications so the potential borrower will keep applying until they get a positive response. Those who are desperate for cash will hear the yes for approval and tune out the fast payoff expectations.
The loan is fast and easy. There is no credit bureau check to draw out the approval process. A low cost cash advance online could literally get you a few hundred dollars into your bank account by the next business day. No bank lines, no driving across town, no more problems…until the loan and fees need to be paid in full just a few weeks later.
- The full loan amount plus fees is too much for your paycheck.
- You pay the loan and fees, but now need a new cash advance to keep up with other bills.
- Your income changed.
These are three popular reasons why the debt from a cash advance online could become a long-term problem. It is hard for a responsible lender to help control any of those except the first. Some lenders will require a certain level of income as loan qualification. The debt trap follows when each pay period accrues more interest on the balance making the amount difficult to pay off each time. A responsible lender would encourage you to pay as much as possible on your loan each time. As your balance lowers, so too will the amount of interest. If your income changes, all you will be able to do is find new ways to supplement the amount. Some people are lucky to find a second job right away while others may have to cut expenses or hold a garage sale to help pay off the loan.
Falling into a long-term debt trap is very difficult to climb out of, kinda like quicksand. Make efforts to increase your income and if you are not able to handle it, don’t be afraid to ask for help. This is another reason why you will want to be doing business with a responsible lender. A predatory lender will not want to help you out of your situation, but rather collect as much money as possible.
Spotya! Cash Advances Online wants the customers to stay afloat financially. There are certain qualifications to help prevent the loan from going bad. A lender can only do so much as it will be the responsibility of the borrower to make the payments. Communicate problems with your lender before your payments become late. You will have more success in getting help this way.
