Reason 1: High Fees and Interest Rates

The fast cash loans, as known as payday loans, depend on the fact that $20 doesn’t sound like much to get $100 right now when you need it. However, if you do the math on fast cash you’ll find you are paying between 100% – 300% interest per year. Usually, the person finds they can’t afford to pay back the loan on their next paycheck so they just keep paying from loan to loan. Eventually, you find you really are paying that much interest on this one time loan. You become trapped.

Reason 2: Lose Your Ability to Budget

Having fast cash as your get out of jail free card gets you into many financial bad habits. People who use fast cash tend to spend their money more impulsively and live more on the edge. Unfortunately, most eventually cut it close one too many times and end up using fast cash consistently (see Reason #1.)

Reason 3: Unsavory Practices

Generally if you lie with dogs you’ll come up with fleas. The premise of most fast cash loans is you must write them a bad check, then you’ll get your loan, then if you have problems they’ll threaten to press charges for writing bad checks. It’s all over not good karma. Basically what I’m telling you is not to do business with these people who assume you’re stupid and that they can push you around. If you find yourself in financial trouble and contemplating there use, get some unbiased money advice to get you back on track.

Banks don’t lend money as quickly as we would like most of the time and they are unwilling to lend to people with a bad credit rating so if you have a bad financial past that option isn’t going to be open to you. Its unfortunate because the banks offer the best interest rates, lowest charges, and generally treat their customer with respect. The same thing can’t always be said of payday cash advance lenders.

Payday lenders are dealing with people who have nowhere else to turn so they know that they can get away with charging much more for their product. Plus, they need to make up for the fact that they are lending to those of us with a bad credit rating and are therefore more likely to find that a percentage of borrowers aren’t going to be able to repay their loan.

If you do some research into the payday loans you will find that if you take out a $100 loan over a couple of weeks you will have to repay around $120 when you get your next pay check. For such a small loan this might not sound like all that much, but it is actually a huge interest rate, and one that quickly adds up when you start taking out bigger loans with these companies.

The bottom line is that you are best avoiding these fast cash products if at all possible. Find better ways to get a hold of cash, or get some financial advice and get your money situation sorted out for good.