It is hard, this time of year, to be strapped for cash. For that reason, many people look to payday loans to help them with their Christmas shopping. It makes sense — Christmas is a time-lock. You have to have your presents wrapped and ready by the 25th. A payday loan can help you meet that deadline. You expect a Christmas bonus and you can pay back the loan then. For the moment, you think I need my cash now. It is an understandable feeling, but try to suppress these thoughts. A payday loan could be the worst financial move you ever make.
The good and bad of cash advance companies is that almost anyone can get cash quickly — that’s the good and the bad is that you will pay a huge fee for that convenience. Companies like Cash Advance Network at least tell you up front what the interest rate is — over 700% and helpfully break it down to real world figures of about $30 interest for every $100 borrowed. So you borrow $300 and owe back $400 in two weeks. Seems like a good trade, if you are seriously strapped for cash, right? In my opinion, it is more of a maybe. Maybe it is a good idea.
Before you seek out a payday loan, think about why you need the money. Is it a matter of losing your house or car? Then maybe this is the way to go. But truly, if this is about giving your kids a “good” Christmas, then maybe you should think again. Some people have good luck avoiding a cash advance network loan by going with cash converters. A cash converter is sort of like a pawn shop. You can sell your items for cash. They will want high quality items and electronics are the best — things like laptops and phones and TVs. You can pursue this avenue, or do it on your own through eBay or Craigslist. What matters is raising the cash you need quickly.
If you are seriously considering a payday loan, remember that all cash advance lenders are not created equally. Some have better interest rates, some better pay off terms, some better front end process. You need to do some research before you jump in. Read the FAQ on the cash advance lenders website. See what other customers have to say; read reviews of the payday loan shop. What do other people, in your same shoes say about the company? Also consider if you can make your goal using cash converters instead of payday loans. Maybe you have an extra laptop and by selling it you will get “my cash now.” Really, the bottom line is that anyone on the cash advance network is going to have high interest rates. They are here to make money. But with some research on your part, you can find the loan shop that will get you what you need without too much risk.