Instant cash loans and fast approval loans may seem attractive, but only if you use them in the right way. When misused, cash loans can seriously destabilize you financially and make it tougher for you to manage your finances.
Before you get cash loans, be very careful on the interest rate charges because you may get charged as high as 48% of the principal amount. The key is to look for the right moneylenders. If you are getting a cash loan, take into consideration if it is a secured or unsecured cash loan as well.
Always make sure you consider the payment period of the cash loan. To determine what is the period suitable for you, first, you have to determine if the payment period allows you to pay your loan comfortably without affecting your basic necessities and bills. Loans with longer payment periods have a higher overall interest rate than loans with shorter payment periods.
Do not only look at the monthly interest rate offered, look at the Annual Percentage Rate for the loan as well. This is because there may unexpected situations that prevent you from paying the loan in one month. By looking at the annual percentage, you can have a better understanding of the interest rate you will incur should there be a delay in payment.
How to solve your debt issues
- You need to determine who you owe money, but most importantly, how much you owe. Note this information somewhere.
- If you are heavy in debt, you may have to consider taking on extra jobs to cover this and the best place to start is by doing chores for your family and friends for a fee or looking for a part-time job. Think of activities that will put money in your pocket and tasks that you can complete to the satisfaction of the owner.
- You can cancel out some extra expenses you incur. Stop paying for extra channels you do not watch, stop buying coffee outside your home, and consider carrying homemade lunch, take a walk or public transport instead of taking a taxi home. You will save a lot of money this way and you can better offset your debts.
- Buy only what you need and not what you want. Cut down on your spending take care of your needs such as purchase of food but avoid excess food that you will not take. Do not spend your money on clothes, books or other good-to-haves when you are cash tight.
- Make a monthly budget which will allow you to clearly observe your financial inflows and outflows exactly, allowing you to make better planning with your spending.
- Get help from a licensed money lender should you require fast cash as these entities allow you to get a fast cash loan in a day or two. Compared to banks, you can receive your loans much faster and also may not be required to have a good credit score. Practice restraint in the amount you borrow and only borrow what you need.