5 Instances Where Short-Term Cash Loans Are Essential
Just about everybody suffers from money problems at some point in time. Unfortunately, those hundred dollar bills don’t grow on trees for us to pick when we're in a bind. Many people don't even get paid enough to live a modest existence. Those who do earn enough sometimes put a hurting on their wallets with poor spending habits. When you're strapped for cash and need some quick relief, your best bet is to apply for a short-term cash loan.
What Are Short-Term Cash Loans?
Also known as payday loans, short-term cash loans are a type of emergency loan that is meant to be used when you find yourself in a tight financial spot. Lenders only hand out smaller sums of cash, usually amounting to no more than a few hundred dollars, to those who qualify. As a safety net, you must leave a check with the lender for the full amount plus interest before receiving the loan.
The biggest advantage of short-term cash loans is that they can get you out of a bad situation quickly. They're easy to obtain as well, and most lenders won't pay much attention to your credit history. There's usually no collateral either, so you won't ever have to worry about losing your car or home. If you have a legitimate need for money and need it as soon as possible, go ahead and apply for one.
On the flip side, short-term cash loans have extremely high APR interest rates normally ranging from 300% to 800%. They must also be paid back in full within a short duration of time to get full value. If you fail to meet deadlines, you'll just end up digging deeper into your financial grave. When used correctly, the benefits of short term cash loans can definitely outweigh the drawbacks.
When Is It Appropriate to Take Out a Short-Term Cash Loan?
When it comes to short-term cash loans, a rule of thumb is to never take one out to pay for existing debt – otherwise, you're only going to end up paying more money down the road. However, there are certain situations where short-term cash loans can be a lifesaver. Here are five examples.
1. Unexpected Car Issues
Having a reliable motor vehicle is a huge convenience in today's world. Some people might even call it a necessity. While there's always the option of using public transportation, most people would rather go where they want when they want. If your car suddenly breaks down, and you depend on it to go to work, a short-term loan could be the ideal solution.
Most car problems can be fixed up with a few hundred or less, so a short-term loan would be able to cover all or most of that. The consequences of missing work can be severe, so fix up that car so that you can make it to the office. You don't want to risk losing your job.
2. Unexpected Injury or Illness
Health is something that most people take advantage of, but even those in good health can become crippled by the sudden onset of some debilitating disease. The body is a very complex thing, and it's not always certain what will happen to it even when you follow guidelines for a healthy lifestyle.
Rare infections, heart attacks, and more can strike when you least expect it. The same goes for injuries. Even when careful, it may be impossible to avoid a car accident, falling tree branch, or slipping on ice. If you're not fully covered under a health insurance plan or don't have any at all, a short-term cash loan would be invaluable.
3. Unexpected Bills
Daily living in modern society can be very expensive. Most people rack up all kinds of bills for a number of different services. Water, heat, gas, sewage, Internet, electricity, car insurance, and rent are just some of the big ones. Since our lives can get very hectic at times, it's not uncommon to forget about paying a bill. If you want to keep your credit score intact and avoid getting penalised with a bunch of fees, consider taking out a short-term cash loan to help pay it off.
4. Unexpected Travel Costs
The death of a relative, the wedding of an old friend's daughter, the discovery of a rare job opportunity - these are some circumstances where you might have to do some unplanned travelling. Things aren't so bad when you only have to drive an hour or two to get there, but sometimes you have to travel halfway around the country. When you consider the plane tickets or cost of fuel, lodging, food, and event-specific expenses, the end total can work out pretty pricey. A short-term cash loan can make your trip far less stressful if your current savings look a little scant.
5. Unexpected Need for a Major Purchase
As unfortunate as it is, we occasionally become victims of uncontrollable events that can cost us a ton of money. If you’re lucky, you may have an emergency savings account that can assist but if not, short term cash loans can definitely assist.
Your laptop could suddenly die on you, your window could get a brick thrown through it, or your fridge might require repairs. Whatever the issue might be, it's going to take money to fix it. If the problem creates a huge inconvenience in your life, it's wiser to pay up now than deal with the long-term consequences. Short-term cash loans can be effective in getting you out of these costly situations.