If you are experiencing short term financial troubles, then an overnight cash loan could be the answer. Whether you need money for an unexpected bill, or because of a family emergency, cash loans are a short term form of credit that could be incredibly useful. However, there are some dangers associated with this type of borrowing.
Short term cash loans are incredibly expensive. The interest rates can run to thousands of percent over the course of a year. You will need to make sure that you can really afford to borrow – otherwise you could end up defaulting and making your credit rating worse, making it even harder to access credit from a mainstream lender.
While an overnight cash loan is a good option for someone who has been hit with an unexpected bill, it is not designed as a revolving form of consumer credit. If you use this type of loan to cover general expenses – treats and holidays, for example, or to pay your rent on a regular basis, you are wasting money and should look for better ways to take care of your finances.
Look at joining a credit rating, reducing your monthly outgoings, or ways to supplement your income. All it may take is a few months of ‘sacrifice’ in order to get your finances on track. Once you are out of the payday loan trap, it gets easier to keep track of your finances – you could save a small amount of money each month, and still be better off than you were when you were paying a lot of interest on your payday loan. It makes sense to try to avoid high interest borrowing unless it is a genuine emergency that you are faced with.