Advantages And Drawbacks
We live in a difficult world, in which most people are poor. Even the average class is made from poor people who have a hard time to stretch their salary to reach the next paycheck. This is why most people don’t even think about saving money. What to put aside when you don’t have enough to live a decent life? This is the sad truth. Most of us live on credit. However, some people can’t even take loans, as banks don’t want them as their clients. They are the people with poor credit scores, with a bad credit history and with no perspective to find a well paid job in the future. What do they do when they have an emergency that calls for a big amount of cash?
They don’t collapse, thanks to quick cash loans. They are better than regular bank loans, as they are much faster. You can apply today and see the money in your bank account tomorrow. Banks take weeks and even months to have your documents assessed and analyzed. Besides, they reject everyone who doesn’t show a good credit score. They don’t care, as they can choose their clients as they wish. These are two reasons why people go for quick cash loans in times of trouble. Just imagine if your car broke and you couldn’t go to your job anymore. This is a catastrophe, as you are going to be fired. You have to find money to repair your car as soon as possible. This is only one of the situations when taking such a loan is a great idea. Medical emergencies also qualify as good reasons for taking a cash advance. If you wait until your next paycheck, you might die, so it’s worth doing everything in your power to get the needed treatment.
As you can see, there are several advantages of this type of loan. However, the drawbacks are also strong reasons for avoiding taking this money. There’s actually one major drawback, which is the price. The interest rates are higher than everything you’ve seen in regular bank loans or mortgages. They are much higher even than the ones of unsecured loans. This should give you food for thought, as you should ask yourself how bad you really need the money. If it can still wait, perhaps it’s better to postpone it. You need to be aware of the fact that you may need to repay the loan by your next paycheck. If you do it, how are going to pay your other bills and buy groceries for another week? If you struggle now, you are going to struggle even more when half of your salary is going to go away in a split second.
These being said, you should think it over, and take the money only if you are in the worst situation of your life. In addition, do your best to improve your money situation by learning more about personal finance management. It helps you learn how to save, even on a low salary.