Thursday, November 8, 2012

Emergency Cash Loans - Meet Ends Until Next Payday

By Kevin Klein


Emergency cash loan is primarily designed for the purpose of providing timely help to the salaried class of people today. They can meet urgency like sudden repairing of car, paying off a bill to avoid any late payment penalty; paying off a medical bill etc. these loans are designed to put the loan money in your bank checking account usually within 24 hours. However, there are pitfalls also.

A cash of $100 to $1500 is what you can borrow under these loans for short period of 14 days. The repayment day coincides with your next paycheck. This means that you can return the loan at the time of your next payday. If you fail to repay, then the loan can also be rolled over for few more weeks on interest payments.

On the other hand, unsecured loans are faster, because you do not give any collateral. But, you need a good credit history to get this online cash in 24 hours. You can return your owed money in two ways - either authorize your lending company to withdraw the loan amount, along with interest and processing fee from your bank account, on a pre determined date or pay part-by-part.

Generally, the decided date is the day when you get your paycheck. This way, you eliminate the chances of missing out the repayment. If you want, you can pay the interest on the set date and when you have enough money, pay the original amount taken as quick loan program. You can always manually return the money, but mostly people prefer the first method.

The Not-So-Brighter Side The only downside of this financial service is its high interest rate. For every $100 you borrow, you have to return somewhere around $115 to $130, that is, an additional $15 to $30. If you do not repay by the first pay date, a late fee is added to it.

However, a drawback of emergency cash loans is its high costs. Interest rate on the small borrowed amount goes higher and once you have stretched the loan for few weeks, the rate is enhanced. This makes the repayment highly costly for salaried people. Hence borrow the loan carefully, so that you can repay it on time. Compare many such offers on internet to find out that some of these loans are being offered at competitive rates. Surely, the loan can help you in urgency but avoid falling in debts.




About the Author:



No comments:

Post a Comment