If you have been searching the Internet today in search of a cash loan program that offers a quick approval and easy application process, you may have come across many articles warning you to avoid such loans. These loans are known to have high interest rates and fees, so some financial experts advise consumers to avoid these loans altogether. It is true that fast cash loans typically do have higher rates and fees than other lending options. However, there are benefits associated with applying for these loans as well.
Other Options Are Not Available
Many consumers who apply for a quick money loan are in dire need of cash. These are generally consumers who have exhausted all of the cash in their checking and savings account, and they may not have other options available to borrow money from. Financial experts, for example, will advise consumers that it is more affordable to use a credit card to borrow money if necessary. A credit card account may have a lower interest rate, but not everyone has a credit account open. It takes time to apply and be approved for this type of account. Furthermore, those who do have a credit account open may not have any available credit. If your account is charged to the credit limit, using this account to borrow money is not possible. Most who use cash loans simply have no other options available.
The Cost of Not Having Money
Because of the high interest rate and fees associated with cash loans, some argue that there is never a good time to use these loans. However, consider the alternative of not having money. What happens when you have no money to pay your utility bill? Your electricity, water, gas and other utilities services may be cut off. Not only are you forced to live in a home without the basic essentials, but you also must pay the bill in full plus reconnection fees and late fees in order to re-establish service. As another example, consider if you make a late payment to your credit card account. A late payment may trigger your account incurring late fee, and this is a real and immediate cost you will be faced with. Another result may be an interest rate may increase. This will affect your payment amount indefinitely in the future, and it will have long-term effects on your budget. As you can see, there are real expenses associated with not borrowing money when you need it.
The fact is that there are expenses associated with using cash loans, but there are also expenses associated with not using them when you need them. If you are trying to decide if you should borrow money now, take time to analyze the costs associated with the loan as well as the extra expenses that you will face if you don't borrow the money you need.