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Quick Loan, Quick Death
Many people find themselves up to their necks in the mud, well
actually debt, and fear a loan because they do not know about these matters or because they think it is a complicated procedure or because they will irreversibly be turned down. All they have is a credit card which is their last resource and it is already up to the brim: Recipe for disaster.
When you begin to feel the rope tightening round your neck, you start to panic. You see a notice, a poster or an ad in a paper that says, Get Cash Now! You investigate and you find out that you can leave the place in a matter of minutes with the cash in your pocket.
Your Credit Card
All they have done is to sell you a pocketful of cash and charged it to your credit card. Double mistake: The first one, to go to these vultures who speculate with your panic. The second, charge a loan to your credit card. However low the interest rate is, it will never be under 18%. Add to that, the fee the lender charged you and you are in for a blazing inferno in no time.
Unsecured Loans
Even if you do not have any property or valuable item to provide as a security, there certainly are unsecured loans in the market and they are not at all expensive. If you compare it with the credit card interest and, in this case, plus the fee, an unsecured loan is dirt cheap. The highest rate you could have to pay is 10%. (And no fee)
Back To The Same Old Story
Credit card debt, as we all know, is terrible when your income will only allow you to make the minimum payments. They go on and on forever and as the song goes, You are one day older and deeper in debt. Then, you end up owing your soul to the credit card company.
The Solution
The only solution to a serious debt situation is to forget about credit cards and take to a recognized lender for a proper loan. It will always be lighter on your monthly budget, with a longer term to repay and a normal interest rate. Whether secured or unsecured, personal loans usually have a three year plan, which is quite healthy and your monthly installments will be low enough to keep you on the safe side.
Other Measures
Some complementary measures must be taken as well, to help alleviate the situation. The first is to reduce spending. If you have a very packed credit card, which is why you had to resort to the unfair loan, put it away and do not use it at all until you are free of debt.
With the loan you will be paying it off, but you need to get used to spending less.
Increase Income
Each time you have to take cash out of your wallet, you will feel as if you were losing a part of your own self and you will think twice before spending on something that is not really necessary. This kind of action should also be accompanied by serious efforts to increase your income.
Get all the family involved. Children and adolescents should contribute, if not with a job, at least with the decrease in spending. They also benefit from the good times, do not they?
Personal Loan vs. Payday Advance: Which is Better?
So youve found yourself in a bit of a financial bind, and need a little help to get through it. Dont be embarrassed; its happened to just about everyone at some point or another. What you need to do now is figure out how to deal with it in the best way.
And if your credit cards are maxed out, and your family members or friends cant help, there are only a couple of real options: 1) a personal unsecured loan, or 2) a payday advance.
Both Personal Loans and Payday Advances may help get you out of a short term financial jam. So now comes the very valid question: Which is better? Well, that can depend a lot on your personal situation, and what you hope to get out of the situation (besides the obvious cash). So lets take a quick look at both.
PAYDAY ADVANCE (LOAN): Its a cash advance, not a loan!
Many people refer to this option as a payday loan. However, the more accurate description is “payday advance.” It is not a loan. It is a cash advance with a large fee. You write a check to the Payday Advance company. They typically give you 80% of the check amount in cash, and then they hold the check until your “payday” which is typically when the money to cover the full amount of the check will be in your checking account. The Payday Advance company then deposits the check and keeps the 20% as their fee for the cash advance.
Odds are youve seen the brightly lit signs of a Payday Advance shop next to some liquor store or in a strip mall, or you have seen them advertised on TV, in e-mails or in banner ads online. The amount of money Payday Advance companies can provide is limited by state law and is typically a maximum of about $500. In California, the maximum advance is $300.
So, the advance may be enough to get you through small cash emergencies when youre between paychecks. If you need a quick couple of hundred bucks for groceries, if your cars alternator goes out, you chip a tooth, etc a Payday Advance might be a viable, but very expensive, option.
However, very often a Payday Advance is only enough to delay the cash emergency for a few weeks, and not enough to get you totally out of it. As a result many people find themselves getting multiple Payday Advances, which can be extremely expensive when each advance costs you a 20% fee. Ten payday advances over the course of year would equal an effective interest rate of over 200%! A very expensive way to go.
And, since a payday advance is not an actual loan, it can do nothing to help your credit status.
PERSONAL LOANS: Get much more money at a much lower cost.
A personal loan is actually a loan that you repay over time via affordable monthly payments. You can get much more cash than you get from those payday advance places – and you dont pay a 20% fee over two weeks!
Of course, if your credit isnt perfect, your bank will turn you down very quickly. However, CashCall makes personal unsecured loans, up to $5,000, to people in a cash jam, who have less than perfect credit! This is the kind of money that can really help if youre facing major car repairs, medical issues, looming bills, etc. The loan money is placed directly into your checking account in about a day, and there are no limitations on how you can use your cash. Its up to you.
A personal unsecured loan from a company like CashCall doesnt require any collateral or security. You dont need to be a homeowner, you dont need to turn over the title to your car you dont need to do anything except apply, and provide some simple paperwork. The cash can be in your checking account the next day.
You use the money to get out of the jam youre in. And then, you can either make the affordable monthly payments or repay the loan when you can. There are never any fees or penalties for repaying the loan early, and you will minimize the interest you pay by repaying the loan sooner rather than later.
Another benefit of a personal loan from CashCall is that you can actually improve your credit score by making your monthly payments on time. Thats right, you can rebuild your credit because CashCall provides all three credit agencies (Experian, Transunion, and Equifax) with your payment information because it is an actual loan, not a cash advance! And in the long term, thats the kind of thing that can truly get you back on your feet.
CashCall Personal Loans offers high-interest-bearing, unsecured term loans to qualified borrowers who typically use the loans for one-time purchases and debt consolidation. These loans of up to $5,000 are processed entirely over the Internet, phone and fax, and funds are wired into the borrowers checking account typically within 24 hours. CashCall Personal Loans are a good alternative to Payday Loans for borrowers. While interest rates are high, they are typically much lower than those of payday lenders, and CashCall Personal Loans have the potential to help customers rebuild their credit score by making payments on time.