How many times in your life (and in the past few years in particular) have you caught yourself thinking that you need cash now? Perhaps rent is long overdue and you’re facing an eviction. Maybe some emergency expenses have caused you to fall behind on paying your bills. Or maybe you simply have some form of outstanding debt that you can’t seem to cover for, no matter how hard you try and how badly you’re struggling. The truth is, in this day and age, just about everyone is in a position where they need cash now. A quick cash loan, for $1,000 or $2,000, can certainly lighten that load and take some pressure off your shoulders. Application is easy, there’s no credit check involved, and the money will be in your hands in next to no time. However, before you even consider applying for a quick cash loan from any lender in particular, we advise you to ask yourself the following five questions.
1) Do you know exactly how much money you need?
Let’s face it: you’re in debt and didn’t end up there overnight. If you’re looking to borrow more money, in order to cover for pre-existing debt, then you will need to know the precise amount of money you require. What would be the point of taking out a loan that’s higher than what you really need, when you’re already indebted? Work out the precise amount of cash you require, in order to avoid unnecessary payments on interest, or risk larger penalties on being late with your payments.
2) Can you reasonably pay the money back in due time?
Chances are that, try as you might, you will be faced with late payment penalties on your quick cash loans. We’re not saying that this is always the case; however, when budgeting for a small, rapid loan, of $1,000 to $2,000, you should also take penalties into account.
3) Do you understand the risks that a quick cash loan exposes you to?
When all you can think of is how badly you need cash now, you tend to think hastily, make half-baked calls, and flat-out ignore the risks you might be exposing yourself to. When it comes to quick loans, there are legitimate lenders, and then there are the bad apples in the basket. As recently outlined by a CNN report, a quick cash loan from an unscrupulous lender can quickly turn into a massive amount of debt – up to ten times what you initially applied for. Check out all the terms and conditions of your loan, especially make sure you understand what your interest rate is, and don’t risk losing your assets over a loan as small as $1,000 or $2,000.
4) Are you sure you’re getting the best conditions on your quick cash loans?
What are good conditions, when it comes to a good quick cash loan? Of course, they can differ widely from one lender to the next but, by and large, when you’re taking out a loan because you need cash now, you shouldn’t be put through a credit check. The lender should not be operating through a teletrack reporting system, and, most importantly, you should benefit from reasonable interest rates and penalties. Run an online comparison of lenders before you decide on any one in particular.
5) Are you panicking because you need cash now?
Relax, take a deep breath, and understand that, no matter how dire your situation may seem at the moment, you can and you will access the money you so badly need right now. Focus on figuring out a way to repay it, in order to keep a constructive mindset and not squander the money in a frenzy – as this might just spell financial disaster for you.