If you need cash and are considering a quick advance loan, you should know that they often charge very high interest rates and there may be better options for you.
The interest rates can be so high that the borrower may find themselves paying back more than they thought. And for someone with financial issues, this can make the situation worse.
Cash-advance loans also hit you hard when you miss a payment. When that happens you are required to pay back a substantial amount Ð probably even more than you thought you would have to repay. You also could end up paying the same amount in interest again.
Just by missing one payment you could make your monthly amount due jump to as much as 50 percent. You run the risk of increasing your overall debt.
Cash-advance loan payment structures are also pretty harsh. By comparison, you can use your credit card, lapse on a payment and still pay back less than you would in the same situation with a cash advance loan. It's easy to see which is the better deal.
If you find yourself in need of a lot of cash, you may want to talk to a loan company first. Their repayment structure will likely be less than a cash advance company and you will repay your loan sooner.
By using a loan company you will have repayment terms that are less onerous. You will have the loan when you need it and without the extreme conditions attached. A cash advance loan may seem appealing but in the end, could make matters worse.