Does Quick Cash Advance Really Help

With additional part-time work and over-time so difficult to find, many families are tackling short-term money problems with a quick cash advance. However, the high APR charged on credit card cash advances, payday loans, and pawnbroker loans means long-term money management may be compromised and long-term personal debt created.

How do Quick Cash Advances Work

A quick cash advance is regularly the only option available to those with money problems and a bad credit rating. Cash advances invariably charge a high APR but are designed to help with short-term money management. For example, pawnbroker loans and payday loans are regularly advertised as a means of paying the mortgage, rent, or more frivolous purchases, such as foreign holidays.

What is the Real Cost of Quick Cash Advances

The rate of interest charged on quick cash advances is a high APR of up to 1000%. This means that payday loans charge customers the equivalent of £20 for every £100 borrowed each month. The rate isn’t much less on pawnbroker loans. Those seeking a credit card cash advance will be charged £3 per month on every £100 borrowed. This, to some extent, reflects the bad credit risk posed to lenders.

Quick cash advances are best used on gambling sites where one knows the art of gambling and is assured chiefly to win a bet. The Australian online gambling market is in high demand these days due to their decent sign-up bonus. This means one can earn by creating an account on one of the best online casino australia websites.

Short Term Money Management or High APR Personal Debt

Taking out a quick cash advance can help with essential household bills, such as paying the mortgage. Cash advances aren’t secured on the family home and can help prevent house repossession. Payday loans and pawnbroker loans help greatly with short-term money management.

While a quick cash advance has its advantages, it can exacerbate money problems and increase personal debt. The high APR charged on a cash advance means that there is less money available the month after. This can create a cycle of dependency; Payday loan and pawnbroker loan customers are often the same people every month.

Quick cash advances should never be perceived as a source of long-term money management.

While it is sensible to tackle urgent money problems with a quick cash advance, it is important to avoid a cycle of dependency. Each month, taking out a Payday loan or pawnbroker loan leaves less money available the following month because of the high APR charged. Those struggling with personal debt problems should always seek guidance from a qualified debt counselor.

While wrapping up the article, it is essential to note that misusing such loans may land up in disaster as the interest rate is very high.

Leave a Reply

Your email address will not be published.