Posts Tagged ‘Quick cash advance’

Advantages And Disadvantages Of Quick Cash Advance Programs

Quick cash advance programs look like very attractive financing option, especially in times of emergency. But, there are some negative aspects also associated with these loans, which you must be well aware of. A planned approach towards these programs is very important. You must do a thorough review of both its pros and cons before you go ahead and sign up for it. Following is a brief overview on it.

Advantages

There are some obvious reasons why people often get tempted to use quick cash advance loans to borrow money so that they can meet their short-term yet urgent financial requirements. Some of the features that make these loans such an attractive option include easy qualifying criteria, simple application process, fast approval, no credit checking and not much paperwork. You can apply for these loans right from the comfort and convenience of your home, through the official website of a payday loan company. Almost anyone can qualify for it as long as they are over 18 years of age and have a decent employment record with an active checking bank account in their name. You can get the borrowed money credited to your bank account within 48 hours. What is more, even if you fail to make the repayment on the set due date, lenders often allow you another month to pay off the debt.

Disadvantages

The above mentioned features of quick cash advance loans are obviously quite attractive. In fact, they are so attractive that people often tend to ignore the negative aspects associated with the payday lending programs. But, ignoring the negative aspects will only make things very difficult for you at a later stage. To start with, the interest charged on these loans is usually in 3-digit APR. You can be charged interest at the rate of anywhere around 200% to 600% or sometimes even more. It means just a $300 of loan taken for a period of two weeks can cost you around $450 to $500. This is not all; since the repayment period is very short, borrowers often fail to make the repayment on the scheduled due date. Though lenders usually offer a one-month extension, but this is more a debt trap than a convenience because you are charged interest at the same high rate for this extra one month; hefty penalty charges are additional. If you are unlucky enough to be late by one month in repayment, you may have to pay back more than double of the actual principal amount. In fact, that is the reason why thousands of consumers in the United States of America are trapped into a vicious cycle of payday debt; many of them are on the verge of bankruptcy; many others are already bankrupt.

This is because of the predatory nature of quick cash advance loans why even the Federal Trade Commission warns consumers against it. No wonder why 16 states have already banned payday lending. Overall, despite so many attractive features, the risk factors involved with these short-term loans are very much likely to put you into serious debt problems. Therefore, it is better to avoid these loans and look out for better alternatives.


Custom Search
Bankruptcy

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Bankruptcy
Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?