Cash Loan Trap

With inflation, the increasing cost of commodities, the unpredictable economy, and increased consumerism, it is unavoidable that people will find themselves short of cash. While regular loans are a given, another popular trend these days are online or quick cash loans that are easy, fast and convenient to secure. However, these quick cash loans are also known for their notoriously high interest rates and strict payment/repayment terms, and those who cannot afford to make the payments find themselves in an even more vicious cycle of debt.

Here are some tips on how you can avoid these quick cash loan traps:

Strive to pay on time. If anything, your number one priority is to make sure that you pay on time, otherwise late and finance charges will wrack up and you’ll find yourself paying off an interest that’s double or triple your principal loaned amount.

Do not take out more than one quick cash loan. Stick to one loan before taking out another one. If you’re availing of a loan to pay off a credit card bill (usually the case), make sure not to max out your credit card until you’ve paid off your short-term loan.

Stick to the payment terms. Some financial lenders are strict about payment/repayment terms. For example, if your loan terms indicate a six-month payment period, you might be asked to pay an extra fee if you decide to fully pay up your loan earlier. If you can, find a lender that allows flexible payment terms without additional costs.