Instant Cash Loans Avoiding High Fees

Instant Cash Loans Avoiding High Fees



Instant Cash Loans – Avoiding High Fees
You have heard the​ stories of​ people taking out a​ cash advance only to​ owe more in​ finance charges than in​ principal .​
You can’t help but ask – how did this happen? Will it​ happen to​ me? you​ can avoid such situations if​ you​ shop wisely for a​ cash advance company and pay your loan on​ time.
Rolling Fees
Cash advance lenders charge on​ average $15 for every $100 borrowed .​
If you​ were comparing APR,​ it​ would be 390% .​
Some lenders’ APR can be as​ high as​ 1000% .​
This usually occurs when the​ pay back period is​ calculated in​ days rather than weeks.
So a​ cash advance of​ $100 will require a​ payment of​ $115 on​ payday .​
If that loan is​ rolled over for another two weeks,​ the​ loan payment will be $130 .​
Do that for four pay periods,​ and you​ will owe $60 in​ finance charges .​
After seven pay periods,​ $105 in​ finance fees will be racked up,​ more than the​ original loan amount.
Research Rates
One way to​ avoid this situation is​ to​ research rates prior to​ taking out a​ cash advance loan .​
Investigate rates of​ lenders and understand their payment structure .​
You can also search for first time deals online that reduce or​ eliminate some fees.
Pay Back Your Loan
Plan on​ paying back your loan on​ your payday .​
This is​ the​ surest way of​ avoiding those rolling fees .​
You can arrange with your lender to​ automatically deduct your payment when you​ are paid .​
Some lenders default to​ only a​ partial payment,​ but you​ should request a​ full payment .​
Cash advance companies may present it​ as​ a​ benefit,​ but you​ are only increasing your finance fees.
Other Credit Sources
If you​ need a​ long term loan,​ then consider your other sources of​ credit .​
Credit cards and personal loans offer a​ better APR .​
But you​ should be aware that they will negatively impact your credit score.
Another option is​ to​ use a​ credit counseling service .​
Through a​ confidential meeting,​ a​ counselor can help you​ plan your finances .​
They can also point you​ toward financial services,​ such as​ debt consolidation.




You Might Also Like:




No comments:

Powered by Blogger.