Having the word “loans” in cash advance loans should tell you that it is a loan product that you can take advantage of especially when you’re tight for money. But it’s not something that we recommend if you’re relatively fluid.
What are cash advance loans anyway? Also known as a payday loan, a cash advance loan is a high interest loan that you need to repay on your next payday. The reason why they are called payday loans is mainly because you need to provide proof of income to the lender. This could be anything from your last payslip to an employment certificate. Aside from proof of income, your bank account details are also required.
The are many websites out there that specialize in these types of loans. The competition has truly made it a convenient type of loan. In order to get it, you typically only need to fill out an online form, and you will get a decision within a matter of hours, with the money sent to your bank account the next day.
You might be surprised but majority of the people who take out payday loans do not do it because of an emergency. They usually do it because they need to make ends meet. Also, there’s also a predominant group of people who apply for it: 20 to 40 year old females. And these people are typically in debt five times out of the year.
If you belong to this group of people who are almost always in payday loan debt, you really need to stop yourself from taking out any more loans. Why? Because the interest rates are prohibitive and you sink into more debt as you reapply for another payday loan. Get a second job or have a business on the side.