Cash Advance - Boon or a Bane

Nowadays a lot of people are inclined towards borrowing cash in advance to make their ends meet. There are finance companies, which are offering short-term cash advance loans or payday quick loans on a higher rate. Although cash advance seems like a good offer in cases of emergencies when you are out of cash but looking at the exorbitant rates at which the money is offered, the deal doesn?t seem that attractive. However, it is of great help in times of emergency.
Cash Advance: How does it work?
Generally you are paid the money on your next paycheck. An additional fee is charged and you are supposed to pay back the money at the time you agreed to. Now here comes the twist, if you are not capable of paying the money you took on cash advance loan on time then you might have to pay a fee which may be at the rate which is five hundred times the amount that you originally borrowed. Moreover, even if you get the cash advance loan payback period (roll over) extended, you might have to pay a fee for the extension.
According to the lending act you must receive in writing the finance or the amount you have borrowed and the APR or the annual percentage rate, which is the cost of credit on the yearly basis. A cash advance loan is generally an expensive credit. If say for a $100 borrowed you have to pay $60 as fee, it?s not that good a deal but if you are seriously in a need for money and you don?t know where to go, you can?t do much but pay those extra $60.
Cash Advance: When to take?
Cash advance or payday quick loans are not desirable ways to pay regular bills such as mortgage payments, apartment maintenance dues or car payments. They must only be used for unexpected bill payments and in emergency situations. Once you borrow you may end up being trapped in a vicious circle where you take a loan to pay for the other and this circle keeps going on. In addition to the heavy dues, which you need to clear, you are also paying costly fees to the loan companies. It is better to first assess the nature and working of the cash advance loans and the payday quick loans before going ahead with the borrowing of cash. For further information, you can visit Payday loans .

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