There is nothing like a fast payday
loan to get you through that emergency when you are broke and have no choice
but to wait until your next paycheck. Yes, these loans are fast - they are
convenient. But are they the best option? Getting stuck in a financial crunch
is a regular situation for a lot of people and this has contributed to the
proliferation of lending companies. Which brings us back to the question - are
cash advance loans the best option? Yes and no, because while it works for some
as a short-term solution, for others it can become a dangerous habit. It seems
like the easiest thing in the world to keep adding up these loans until you
suddenly discover one day that you are deep in debt. Sadly some people even con
themselves into looking at these loans as an alternate yet steady means of
getting their hands on ready cash.
Any sensible person will tell you
that paycheck loans are best used as the last resort for a rare emergency. But
sense is the last thing on the mind when it is clouded by the worry of how you
are going to raise cash for, say, a medical emergency, urgent repair work,
paying off overdue bills - all of which are expenses that can hardly wait.
This brings us to the lenders who
offer cash advance fast payday loans. The concept is simple - a small loan
limited to a few hundred dollars that can be covered by your paycheck, which is
just a few days away. Of course, you have to pay a fee for the service. So far,
so good. Philanthropy does not feature high on a lender's priorities. The
business looks at high profits. Lenders charge exorbitant interest rates.
Unfortunately, the whole idea of a short term cash advance is so attractive and
addictive that habitual borrowers can seldom resist the idea. It is not as if
the borrower does not know that interest rates ranges from a mind-boggling 400
to 800 per cent annually. Because the loans are short term, it does not seem
all that scary.
When you do get into an agreement
with a lending company, you are expected to repay the loan on the due date.
Some people plan it accordingly and clear their payments. A majority of people
tend to 'roll the payments' where a part of the loan is cleared off. What remains
attracts a new rate of interest.
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