The Cash-Only Underground
The lender, not the borrower, usually determines the cost of getting money when you need it. If you have a credit card, you may start with a low annual percentage rate (APR) only to see it jump six months later. Every late payment that you make on a credit card not only increases your APR but also adds a fee of $30.00. That's why some people prefer to have a cash loan not based on credit; instead they choose a payday loan.There are segments of the population in America that deal in cash or checks only. Whether this is because they have never gotten credit or believe that cash is better, it all boils down to a personal choice. Many illegal aliens use a cash-only basis because they fear governmental agencies and being deported. Other people had credit but it got ruined. For these people, a cash loan in the event of emergency is welcome consumer product.
When cash loans are used properly, as a short term solution for immediate financial problems, the benefit of getting a cash loan versus out weighs the alternative option of having to borrow money from family or friends, or worse, not being able to pay the unexpected expense at all.
When a cash loan is the option taken, any and all loan information is provided ahead of time by the payday loan lender with the understanding that the consumer should have no more than one other loan from another payday lender outstanding. If, however, the cash loan is needed immediately to meet a medical or household emergency, to maintain a job, or provide childcare or utilities, then a cash loan on an upcoming paycheck can be the ideal solution.
Contributing National Payday Staff Writer
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