Quick cash loans can seem like an appealing option if you are stuck for money and can’t see an easy way out, but do they make sense or are they a financial trap that will leave you unable to afford to pay them back in the long term?
The truth is that it depends on what you took the loan out for, your personal circumstances, and how you manage your money.
Quick cash loans are very expensive – and they tend to have very strict – almost unfair – repayment terms. But they are also a very valuable option for people who are unable to obtain credit from mainstream lenders.
It’s easy to say that people should just save their money, use an overdraft, or put expenses on a credit card – but not everyone has a stable income, and those who do not have a stable income may struggle with things like that – they are living paycheque to paycheque, and they can’t save when they have nothing left over at the end of the month. Any unexpected bonuses they get go on things like replacing worn out shoes, or paying for unexpected bills and expenses. For those people, high interest loans could be the difference between living without heating for a while in the winter to get their car fixed, getting sick, and being unable to work, or getting the car fixed sooner then doing a bit of overtime to pay off the loan – neither option is ideal, but the fact that the option is even there is valuable – and yes, when you are in that sort of situation the extra expense associated with high interest short term borrowing is well worth it. Don’t dismiss those lenders until you know what it’s like to need them.