If you’re experiencing financial stress and are having trouble making ends meet, you might be attracted to the idea of acquiring a fast money loan — especially if you have bad credit and aren’t aware that there might be other options available to you. It’s understandable that these types of loans can seem like a godsend in times of need because they’re given out quickly and with almost no conditions for approval. But don’t be fooled.
Before contracting a new fast money loan, be careful and do your research.
When it comes to borrowing money, you should always do your research in order to ensure that you won’t be worsening your situation. If you already find yourself in a hole, the best thing you can do is to stop digging.
What is a Fast Money Loan?
Fast money loans are given many different names, such as instant loans, short term loans, payday loans, express loans, etc. All of these names have one thing in common: they promise a quick receipt of the money for a very short term (usually around two weeks). Short term money lenders operate both at a physical location and online. It’s up to you to contact l’Office de la protection du consommateur in order to ensure that they hold a valid license.
The idea is that it’s just a temporary loan to help you make your payments for a few days while you wait for your next paycheck. Once you receive your paycheck, you’ll be able to pay the lenders back. These fast money lenders will promise you that there is no credit check, will usually allow you to borrow up to 1,500$, and will deposit the money directly into your bank account. Generally, the only information they require of you is whether or not you have a regular income, a bank account, and a permanent address. Seems harmless, doesn’t it?
Why You Should Avoid Them
Be wary, fast money loans and payday loans have astronomical fees and interest rates!
Unfortunately, everything comes with a price, and the easier something might look, the higher the price-tag. What most people don’t know is that these types of loans come with extremely high interests and fees, which is ironic because they’re mostly geared towards people who are already facing financial difficulties. In fact, the cost of these loans is comparable to a 400-600% interest rate! Based on a 300$ loan for 14 days, the cost of a payday loan is almost ten times that of borrowing from a line of credit, and roughly seven time higher than that of overdraft protection from a credit card or cash advance on a credit card.
You might tell yourself that you’ll only borrow from fast lenders one time. However, this is a dangerous path to be treading, because the more you pay in fees, the the shorter you’ll find yourself on money. The shorter you are on money, the more you’ll come to rely on these loans and the less likely you’ll be able to pay them back on time (which will incur even more fees).
Other Options
Even if your situation is urgent and complex, we can help you solve your debt problems once and for all!
The best thing you can do is to avoid fast money loans entirely. If you find yourself in a situation in which you’ve already spoken to your creditors about deferring your payments, you’ve already adjusted your budget as much as possible, and you still can’t find ways to make ends meet, consider seeking the expert advice of a Licensed Insolvency Trustee.
After a free and confidential consultation, your Trustee will determine the best course of action in terms of debt solution and will help you throughout the entire process.
This may not seem as instantly gratifying as a fast money loan, however, if you follow your trustee’s advice, you may never have to feel burdened by financial troubles again.
