Fast Cash Loans That Can Save Your Financial Future

Imagine yourself sinking down a deep black vortex with no way out. That’s how some people caught in the debt spiral feel. Take Anita’s case, for example:

“I’ve made some really horrible decisions. Now I feel I’m trapped. I’ve taken out loans to pay other loans, because I thought this was smart. After all, big corporations do this all the time. The problem is, I’m not a big corporation. I’m a poor single mother of two growing kids living from paycheck to paycheck. I’m not sure if I have it in me to ever manage debt properly. I’ve heard of fast cash loans that I can get online, but I’m scared to even think about them because I might end up in a deeper hole. Should I consider taking out fast cash loans for emergencies?”

-Anita

Well, Anita, loans aren’t bad in themselves. It’s what you do with them that gives them the potential for trouble and based on what you’ve said you’re very aware of this. Fast cash loans can really help you during emergencies and they can bail you out of extremely tight situations. The trick is to really study the conditions well, and use the amount in a sensible way.

How to use fast cash loans

No beating around the bush here. Use a fast cash loan only for the purpose for which it was taken out, whatever that purpose may be. This “extra money” is not an occasion for celebration so don’t even think about the drink (or two) at the local bar, or a brand new dress. These don’t classify as emergencies, unless that dress will help you land a new job. In fact, borrow only the exact amount you need, and no more. Don’t take out a loan just because you can. You need to have a very clear purpose. For inspiration, read the article on how to stop accrued debt and lead a debt-free life.

Find a Legit Lender

Not all lenders are created equal. The bad news about predatory lenders that you hear about in the news is really true, especially in countries like the US, UK, and Canada. There are lenders out to take advantage of your desperation. You will need to do your homework so you’ll find lenders who are above board. When you’ve made a shortlist of the lenders that you might want to borrow from, make it a point to check them out with the Consumer Financial Protection Bureau. By virtue of the recently enacted Dodd-Frank financial reform bill, it has the mandate of regulating lenders of fast cash loans.

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Read the fine print, triple check the interest rate

Study all the terms and conditions that come with the loan. Make sure these terms and conditions do not have the hallmarks of predatory lending. Excessive fees for servicing and processing, rates higher than what your credit rating normally allows, access to your salary bank account and the requirement for auto-debit are some of the signs that you need to watch out for.

Also make sure that you’re fully aware of the actual interest you’re paying for your fast cash loan. Because the period of the loan is very short, interests may appear to be small, but when computed as an APR (annual percentage rate) it may amount to something big. Try using the APR when comparing rates being offered by lenders. There are a number of free calculators online, such as the ones provided by the Federal Student Aid program.

Salvation or damnation is all up you

Your experience with fast cash loans is really all up to you. It can save you, lead you to hell, tide you over ‘til the next payday or drive you deeper into debt. In this game, the wise borrower always wins.

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Category: Personal Finance