If You Consider To Get a Quick Cash Loan Then Reconsider It


A quick cash loan also called payday loan, cash advance loan or a deferred deposit service is a small, short-term loan typically ranging from $ 100 to $ 500. These quick cash loans are issued against paychecks. In 2003, payday lenders like bank departments, credit companies or independent cash lenders serviced between 10 million and 12 million customers. A typical borrower of such cash loans pays $15 for every $100 borrowed. The loan period normally lasts for two-weeks. If you do the maths, youl'll quickly see that this accumulates up to an annual percentage rate of about 400%.

Now, you may inquire that since the loan period is only two weeks, you only pay 15% period. Yes, that's right if you are able to take no more than one cash advance loan a year. However, statistics shows that many of the first time borrowers are taking this type of loan again and again. And here is the real danger with such loans: We have seen over and over again that if you first have started with payday cash loans, it is very difficult to stop taking them. Therefore this type of loan creates a vicious and costly circle.

If you consider this loan option, I recommend that you to go back and do a comparison of loan fees, interest rate and other costs of payday loans to other credit offers (for example credit cards). I can almost guarantee you that you won't regret it.


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