Home > Payday Loans >
Quick Loans > Shower Yourself With Quick Cash With A Cash Advance Loan
Shower Yourself With Quick Cash With A Cash Advance Loan |
|
Cash advance is an option when you are in need of quick cash. However caution is advised as these loans prove
problematic to manage. Prior to making any commitment for cash advance loans, consider other options. Borrowing from your bank, a draw from your employer or payment arrangements on existing bills to free up more money are alternatives worth considering in place of cash advance loans. Today cash advance enjoys massive demand due to cash advance showering quick cash. But be aware of the perils involved. Here is an example. Sylvia, a California resident approaches a cash advance business (cash advance is also called cash advance or check advance loans). She handed over a worthless post-dated personal check, taking $200 cash. Though she still had to face hospital bills, funeral costs and assorted expenses following her husband's death three years ago, the 41 year old fashion designer was confident of being able to afford this short term high interest loan. A relative tipped her about the cash advance business that loaned her the money without credit check or hassle. Sylvia had to pay $39 for the initial $200 loan but two weeks later paid another $39 to extend the due date. Finally she ended up borrowing from another cash advance business for the subsequent renewal fees on the first loan. Then she borrowed from two more financial institutes. As a result of the $200 loan, she now owes Cash, Inc., Cash First and two EZ Cash, taking her debt to a total of $880. Only then did she realize that cash advance loans were not helpful in the least. She described it as being over my head. Cash advance makes it too easy to fall into debt. A careful look will reveal cash advance business has very high interest rates and harsh penalties. Sylvia discovered it the hard way when she could not keep pace with the rapidly rising cash advance fees. Similarly an average consumer avails 11 to 12 cash advance in a year with almost 40% of borrowers extending cash advance beyond the initial two-week term. This is where borrowers lose and lenders gain. The longer the borrower takes, the more lenders profit on interest. Cash advance usually requires the borrower to make a personal check to the lender for the amount to be borrowed along with a fee. The check amount minus the fee is then given to the borrower. Cash advance fees are usually a percentage of the face value of the check or a fee for the amount borrowed. Extending or rolling over the loan by even two weeks will require payment of fees for each extension. There are plenty of unscrupulous cash advance agencies in the market charging sky-high interest rates from consumers. Many only have the purpose of making money by taking advantage of consumers. The cash advance Act prevents lenders from exceeding 36% APR on short-term loans. The State Banking Department sued to keep payday lenders from functioning in the US as being in violation of the Act. However a court injunction allows payday lenders to continue operations in their state unit until settlement of the suit. But in the meantime, lobbyists put pressure on the Legislature for Senate Bill (SB) 30 for reducing fees to $16.25 per $100. In contrast, cash advance loan lenders are fighting back with the claim that they provide consumers with onetime financial aid for emergency needs. They even claim that cash advance lenders are the last resort for consumers who fail to get credit from any other source. Regardless of their justification, there's no denying that their loans involve great risk for borrowers. Due to this reason, it is of crucial importance that one considers what would be the exact amount required as the cash advance. It needs to be an amount that can be paid back without difficulty from the very next paycheck. In addition, try to fix the fee of lenders before finalizing any deal. It's always preferable to shop around for the lowest fees in your locality. |
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
|
|
|
|
| ------------------------ |
|---|
|
| ------------------------ |
|---|
Custom Search
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
Consumer Alerts | About | Bookmark Us | Contact | Espanol | Privacy Statement | Copyright | Terms & Conditions | Financial Widgets | SiteMap
Copyright © 2006 Credit Loan, LLC. 235 APOLLO BEACH BLVD, STE 218 Apollo Beach, Florida 33572 All rights reserved.
Disclaimer: The content provided on CreditLoan.com is for informational purposes only; do not make any financial decisions based on its content. Financial decisions are personal, based on an individual's situation. Consult with a financial professional before making any financial decisions. CreditLoan.com is not liable for your financial actions.
