Instant Cash Loans Avoiding High Fees
Below is a MRR and PLR article in category Finance -> subcategory Other.
Instant Cash Loans: Avoiding High Fees
Summary
We've all heard the stories?"people taking out cash advances only to end up owing more in finance charges than they borrowed. How does this happen, and can it happen to you? By choosing the right cash advance company and ensuring timely repayment, you can avoid these pitfalls.
Understanding Rolling Fees
Cash advance lenders typically charge about $15 for every $100 borrowed, which translates to an APR of 390%. Some APRs soar as high as 1000% because payback periods are often calculated in days. For instance, borrowing $100 means paying back $115 on payday. Rolling the loan over for another two weeks increases it to $130. After four pay periods, you'd owe $60 in fees, and after seven, $105?"exceeding the original loan amount.
Research Rates
To avoid high fees, research rates meticulously before committing to a cash advance loan. Compare lenders and understand their payment structures. Look for first-time borrower deals online that might offer reduced or waived fees.
Timely Repayment
Plan to repay your loan by your next payday to avoid rolling fees. Arrange automatic deductions with your lender to ensure full payment. Some companies offer partial payments, but opting for full repayment helps you avoid accumulating additional fees.
Explore Other Credit Options
For long-term loans, consider other credit sources like credit cards or personal loans, which usually have better APRs. However, keep in mind the potential impact on your credit score.
Alternatively, consider a credit counseling service. These services offer confidential advice to help you plan your finances and may direct you to financial services such as debt consolidation.
By being informed and proactive, you can make smarter financial decisions that avoid the pitfalls of high finance charges.
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