Avoid the Trap
The growing number of people opting for cash advance loans attests to the fact of how beneficial this type of loan can be during emergency situations. Some people, however, have been caught in the so-called vicious cycle of cash loans.
That is, they’ve been caught in the cycle of borrowing and paying their cash loans, and then taking out another loan, then paying back, and the cycle goes on and on. Some have even found themselves unable to pay back the funds they’ve borrowed.
Now this doesn’t mean you shouldn’t consider taking cash advance loans when you really need to. There are ways on how you can avoid being caught in this so-called trap.
The most important factor to consider when taking out cash loans is to know your ability to pay back the loan. Cash loans carry high interest rates, so you may want to ask about this and clarify interests and other hidden charges, if any, before filing an application. Interest rates depend on the lending facility you are dealing with, but typically a lending facility will charge $15–$30 for every $100 you borrow.
You also need to be well aware of when you need to pay the loan back and to make sure you have the available funds on your agreed date of payment. Some lenders will require you to pay back whenever your next paycheck arrives. Some will give you two weeks to pay back, while others a month or two.
Importantly, you need to know your lender well. Make sure the facility is reputable and is known for providing loans with reasonable interest rates and with no hidden charges.
With the easy and quick process, as well as the no credit check, involved with cash loans, anyone can easily get addicted to taking out this type of loans. However, it’s also easy to get trapped in a cycle of debt. But if you do your research well, clarify issues and unclear aspects of cash loans with your lender, and of course sticking to the agreement you have with your lender, there’s no way you’ll get trapped in the cycle.