Cash Advance: Pros And Cons

By: Apurva Shree

If you happen to run a household, which has a tight budget, you might face urgent cash requirements to pay your grocery bills, school or tuitions fees for your child. In your financial emergences, you can opt for payday loan services, which are offered by various lenders in your state. These payday loans can be acquired for the shorter period in comparison to general loans. You can search for local payday loans lender via internet. Various companies on the net are ready to provide you instant loan services without any formalities.

Minimum Qualification Required

To get eligible for these cash advances all you need is to be eighteen years of age with the citizenship of the United States. Other requirement under these loans is that you must be in your current job for at least past 3 months, and must be drawing at least $1000 along with an active bank account in your name. if you clear all the above requirements, you can easily apply for payday loans, and get over your financial crunches.

Cash advance service come with small duration, say one or two weeks. The loan amount mostly depends on the monthly salary you drawn. It could be anything in between $100 to $1500. Thus, the loan company would only be interested in your current job and salary, so that you are able to repay the amount on your salary day.

The Cost Of These Payday Loans

A flat fee for every hundred dollars is charged on the payday loan. This fee varies from company to company, in most of the cases you will have to pay $10 to $15 for every hundred dollars you borrow, per week. This mean; if you borrow $100 for two weeks, you might have to pay $20 to $30 as an interest rate. This amount looks small, but it can get quite high if you are not careful about the repayment dates. So your objective should be to take the first cash advance only in case of emergency, for the minimum period possible and repay it as soon as possible, that is, on your salary day.

These loans can make your life simpler if used wisely, but can also make your life hell if used excessively. Always take these loans in the dire need, as do not make it a habit to acquire a payday loan for your daily household expenses; this can make you land up in the debt burden.

Money Management
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