Cash Loans Fast: Ways to Handle Them
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The easy availability of fast cash loans is one of the major factors that has contributed to their popularity among borrowers. Popularly regarded as the most potent tool for borrowers with bad credit to tide over their temporary financial problems, short term financing has some cons as well. We will learn about them as we progress through the article but not before learning what exactly short term financing is all about.
A borrower generally seeks the aid of short time financing when he finds himself cash strapped in times of emergencies. For instance, if he needs to pay an urgent college admission fee or a medical bill, and finds himself without cash, he can apply for short time financing as a traditional personal loan would mean that he has to go through a lengthy documentation process. Possibly the payment that he needs to make can’t wait for long. On top of that if he has had bad credit scores from his past loans, his application is most likely to get rejected in case he is seeking a traditional personal loan. Here is where a payday loan scores. It is approved without any credit check and the money is credited to your account within 24 hours of approval.
In order to qualify for short-term financing the borrower needs to be at least 18 years of age, have an account that accepts checks, and he must have a regular source of income.
Demerits
One of the biggest disadvantages of securing cash loans fast would be the high rates of interest involved. As creditors provide them without proper credit check, the chances of default always remain high. As such, they carry very high APR (even 400 per cent at times). Missing payments on time would result in fast accumulation of the rates that might as well seem very difficult to repay.
Borrowers are often found getting addicted to these loans. Just because, they are sanctioned without due credit checks, it becomes one of the easiest ways to get your hands on fast cash. There are some payday lenders in the market who target the helpless students with less than decent credits. The students who need to pay semester, and other college fees on a regular basis remain most vulnerable to threats of being entangled in major debt traps as they are not always found making payments on time.
Solution
Judging your needs before taking fast cash loans and paying them back right on time remains the key to successful debt handling. Think wisely before you apply. Is the need for which you are seeking the loan, too urgent? Can it wait for the next payday? If you think you have the choice of fulfilling the need when you receive your next salary, then there is no need to resort to short-term financing. If you have already taken the loan, then make it a point to repay it on time. Make sure that you aren’t opting for a rollover. If required, seek an alternate source of earning by doing freelance jobs or for that matter doing overtime, live on abstinence by fulfilling only your basic needs till the debt is paid off.
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Category: Loans
