Quick cash loans or payday cash advance loans are not evil - all by themselves.
They're not cheap either, of course.
What IS critical is that you understand the potential high cost of not paying these loans back on time and the financial impact of rolling the loan over (basically extending the loan terms).
You MUST pay these loans back on time or face ridiculously high fees.
For example if you borrow $300 at $15 (per each $100) due in 14 days you will owe the quick cash loan provider a total of $345 in 2 weeks. Tolerable in an emergency.
However many of these loans come with a rollover option, which allows you to pay the funds back in 28 days.
This is where you start really racking up the fees...
You will now need to payback the original $300 PLUS $90. The fee has doubled because of the rollover option. OUCH!!
Here are 3 Tips that will keep you out of trouble if you are considering a quick cash loan:
Only use Payday Loans for an Emergency
Buying a Mocha Latte is not an emergency.
Neither is buying flowers for your girlfriend or boyfriend.
Prescriptions for your kids strep throat is however critical and urgent. So is a car repair, so you can get to your job, go to the store and transport your kids to school.
When you have no other payment alternative to cover a basic human need, these funds are totally justified.
Use a Quick Cash Loan Instead of Paying Overdrafts
The average overdraft at your bank costs about $35.
In the unfortunate situation when you know you will be writing many checks or using your debit card and your account is hovering at ZERO a payday loan can solve the problem.
For example, if you know you need to make 5 withdrawals and your checking balance is $0, you could be charged $175 on those 5 overdrafts.
If each debit was $20 you just ended up paying more for the overdraft than the withdrawal amounts.
The cost of borrowing $100 from a quick cash payday loan store would have only cost you $15 to $25 - a much better option.
Choose Wisely - Never Apply to an unsolicited email Ad
If you must resort to a payday advance loan make sure you do a little research. Never sign up with a company that originates from an unsolicited email - delete these!
Choose a reputable online loan provider ( see links at the bottom of page), that will safeguard your personal information.
The consequences of applying with just any payday loan company could be disastrous. As many of these are fronts for "phishing" and identity scams.
The Bottom Line
If you need quick cash it can be available in 24 hours. If you don't make these loans a habit they can solve critical cash emergencies - Just make sure you pay back the loan in 14 days.
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