If you have a short term problem needing a small amount of cash, then an instant cash advance loan should be one of your options. It was specifically designed to provide solutions for emergency cash problems. If you have not heard about it before then you are missing on a chance to use a financial product that is meant to take care of your needs. Before you jump in and use it though you have to read more about it first.
Payday Loans with No Fax and 1 hour approval
They are marketed as a replacement for a cash advance and are taken out against the borrower’s paycheck. The amount is limited by what the borrower is going to receive. In some ways it is a good way of keeping the borrower afloat before the payday.
Where The Problem Starts
The problem is that a quick online loan is seldom used in the way that it was meant to be used. Studies have shown that a majority of the borrowers who took out an instant loan used it to pay the recurring expenses. It was never meant for that and using it for those expenses entails a great deal of risk for the borrower.
Where the Risk Comes from
A payday loan is a very expensive financial product. Its interest which comes as charges added on top of the loan is much higher than what you will get charged when it comes to other loans. When the interest is computed on an annual basis, it would range somewhere from 300% to 700%. The exact interest would depend on a cash advance lender that you are dealing with. This is much higher than with any other financial product.
The Lack of Regulations
You might have noticed a wide range of possible interest that you might get charged with. It can be attributed to the fact that in most states there is really no government regulation on these types of loans. Lending companies are left alone and they can charge whatever it is that they want to charge. This places the borrowers at the mercy of these companies.
Placing the Borrower at Risk
The high cost of the loan places the borrower at risk. You could become trapped in a continuous debt cycle just to meet their monthly expenses.