Sometimes in life, you need fast cash. A sudden home emergency, dental problem, car repair, or other unforeseen expense might not have been in your budget… In these cases, you might be looking for quick money.
If you find yourself in this situation, proceed with caution! Many fast cash lenders seem too good to be true — and that’s because they often are.
Fast Cash Lenders to Avoid
Payday lenders are one of the most popular sources for quick money, but here’s the catch: taking out a payday loan will actually cost you more in the long-term.
When you take out a payday loan, it functions similarly to taking out an advance on your paycheque. You can receive up to $1,500 at once. But then you need to repay it all at once, too… Payday loans have short repayment spans, usually between 14 to 28 days (2 to 4 weeks), but no more than 62 days.
If you receive a biweekly paycheque for $2,000 and you take out a $1,500 payday loan for fast cash, you’ll have to repay that $1,500 likely by your next pay period — plus interest. This will leave you very little left over to fund your other expenses, like rent, utilities, and groceries.
What many people tend to do in this situation is only repay the interest owing and then take out another payday loan to repay the first. This creates a vicious cycle where you are constantly paying off one loan with another — which isn’t ideal for you or your finances.
And we haven’t even touched on payday loan interest rates, which are some of the highest out there. Legally, payday lenders can charge you $15 interest for every $100 that you borrow. So, if you take out a $1,500 payday loan, you could be charged $225 interest. When you express that as an annual interest rate, it is much higher than the interest rate you receive for a credit card, line of credit, or other type of loan.
You may have received the cash quickly, but you’re actually paying more in the long term.
A Better Fast Cash Solution
If payday loans aren’t the answer, then how can you secure a cash loan quickly?
Simple – take out a personal loan from a reputable lender.
At Prudent Financial, for example, we lend based on equity. If you have assets, such as a car or home, you can take out a loan based on the equity available in that asset.
We offer same-day loans with fixed interest rates and payment schedules, so you know exactly what to pay and when to pay it. This enables you to plan your budget over the long-term while securing the money you need.
We lend to people with bad credit, people on pensions, self-employed, people in bankruptcy and consumer proposal, and more.
When you are considering a fast cash lender, be sure to consider the long-term costs and make the choice that gives you the most flexibility in your budget.
Find out if you’re eligible for a Prudent loan today. Call 1-888-852-7647 or visit www.prudentfinancial.net for a free consultation.