Payday loan: Why they’re not the best type of loans

Google+ Pinterest LinkedIn Tumblr +

Are cash advance loan addictive? They can be if you’re in need of quick cash or you’re stuck with many bills and you need help. Are they the best choice in terms of loan? No! They’re the worst choice out of all loans because of the high interest rate and the low amount of loan that you can get. In terms of interest rate, cash advance loans are the worst to obtain and you should find alternative to loans sources if you can. Seeking out cash advance once in a blue moon might be alright but this is not the best choice in the long run due to the high interest rate. You’re pretty much just getting yourself into owing more money with this type of loan. I’ve tried it before and I know that they charge you about $40-$70 per loan depending on how much you take out and this is very high if you’re only loaning like $300. You’re paying from 15%-25% of interest and this is too high. I rather save and live frugal and plan for an emergency then take out a loan like this.

They can be very addictive for someone who is low on fund and really need emergency money. I have seen people line up at the cash advance place trying to fill out for loan. Sure, they’re addictive but you shouldn’t be addictive to it though. You should definitely cross this type of loan off of your list in the nearby future because you’re paying too high of an interest on it. You should consider loaning from a relative or just using credit card as those are lower in interest rate. The interest rate is the big “no” in this case. You’re pretty much losing to the loan business when paying them 20% interest. It can be higher if you took out a higher loan. It’s a very destructively type of loan and I don’t recommend it at all. Although, I know there are some people that really need it temporarily and that’s alright but it should only be your temporary solution and never long term as with all types of loan. You should have some cash for a rainy day. Rather than being addicted to it you should find other way to finance your needs.

Share.

About Author

Leave A Reply