How Much Do Fast Cash Loans Cost?
The costs associated with fast cash advance loans are intimately bound up with lender terms, the amount of money borrowed, and the processing fees necessary to complete the transaction. Cash advance loans are as a rule quite pricey. For a mere $200 loan, expect to pay a minimum service charge of $30 due within one or two weeks of the loan. When you take out a loan, you’ll have to provide a check or money order in the amount of the cash advanced plus the service fee — cashable at the end of the term of the loan.
You can opt to rollover loans in certain circumstances — thus voiding the check or money order you used to acquire the money in the first place — but doing so subjects you to higher interest rates and penalties. Within a few short months, the penalties associated with your loan can exceed the balance of the loan itself many times over.
For instance, in our example, let’s say that the lender charges a service fee of $30 per week late. By the end of just ten weeks, you’ll have accrued $300 in service charges plus the $30 for the initial price of the loan. Thus, to pay back your $200 loan at the end of ten weeks rollover will cost you (including the balance) $530.
Cash advance loans need not cost you an arm and a leg, however. If you prioritize repayment and limit your use of said subsidies to true emergencies, cash advance loans can actually deliver critical stopgaps during tough fiscal times. If you find yourself increasingly dependent on cash advance loans for day-to-day survival, however, it’s a good bet to get in touch with a credit counselor near you. After all, delinquent loans of any kind can impact your credit rating, which can in turn impact your future buying power.
In other words, if you get into credit trouble as a result of past due cash advance loans, you may find it much more difficult to attract lenders for more equitable longer term loans in the future. If your debts are piling up, and your only source of legitimate financing is cash advance loans, consider filing for bankruptcy to wipe your slate clean of unsecured consumer and personal debts.