Finding yourself short of cash between paychecks is more than just an inconvenience; it can end up costing you a lot of money. Many people simply decide to put off paying a bill or use their overdraft or perhaps even use a high interest rate credit card to pay off the bill or charge. However, the best possible option and one that has the potential to save you money in the long run may be to apply for cash loans online.
Putting off Payment
Putting off a payment, especially a recurring payment such as a credit card bill, utilities bill or a phone bill is never a good idea. Remember that these creditors report directly to all three credit reporting agencies. Failing to pay a bill on time will result in a significant penalty, often as much as $30 or more for the first late payment, plus it may increase your interest rate in the future.
Taking out cash loans online to cover the cost of the payment avoids those late fees and potential risk of higher interest rates in the future. It also prevents the risk of loss of service until your next check.
Using Overdraft
If you do have overdraft, and many people do not, this can also be a costly choice. Banks do track use of overdraft privileges and, in most cases, you are limited to so many overdraft transactions per month before you are charged a fee. Again, these fees can be significant and create an increasingly negative balance in your account. Instead, with cash loans online, you pay a one-time fee for the loan based on the amount that you borrow.
Using Your Credit Card
Credit cards, when compared to cash loans online, can be a slippery slope. Since you are not required to immediately repay a credit card balance most people pay the minimum or just a bit more per month. This means that every purchase adds to the amount of interest that you pay over the life of the card account. For even a few hundred dollars this can add up to hundreds of dollars in interest.
Using cash loans online when you can repay the initial principal and the fees with your next paycheck, avoids all these additional fees and expense issues. Compare your options and do the math to determine if cash loans online are the best option for your needs.
