Whenever you have an immediate financial problem, you can always take out a loan. This day, there are many kinds of loans that you can choose from. The most popular of these loans are personal loan in Singapore with various flexible terms and options. Another option that you can try is a cash advance loan—also known as payday loan. Many people will probably advise against getting cash advance loans due to several reasons. It’s best to explore the basics of a cash advance program.
High Interest Rates
Cash advance loans are known for their outrageous interest rates. On top of that, you have to settle the loan before your next payday. If you fail to do so, the loan will incur additional payments and fees. Because of this nature, many payday loan borrowers have thousands of dollars in debts and penalties. A cash advance loan can be considered as a last immediate resort if you can’t borrow money in the soonest time possible.
While banks are now offering cash advance programs, you can still see small lending booths and offices in many areas. These lenders appear as problem solvers, but they can drag people in the mires of debt—especially if proper loan management tactics are nonexistent. Cash advance loans have always been the focus of predatory lending concepts but people are still in need of such loans, regardless of the consequences.
Know When to Get One
The real trick about cash advance loan is the premise of knowing when to get one. If you encountered any financial mishap and you’re short on cash, it’s best to approach your friends and relatives first. There’s a big chance that they’ll lend you money and you can get out of the traps of cash advance loans. However, if you really need to take out this kind of loan, then your concern is efficient loan repayment within a short period. Do everything to pay the loan so you don’t have to settle for stressful fees.
In a way, a cash advance loan is an uneasy solution. This type of loan still needs improvement on all aspects, and lenders should have better policies as well.