The Lowdown

The LowdownAre you in a tight financial bind? If so, cash loans may be a good solution. Before you jump in and take out one of these loans, however, it is important that you fully understand their advantages and disadvantages. Here is a quick rundown of the pros and cons of these short-term loans:

Pros

* Fast cash. When you find yourself facing a sudden emergency such as an infected tooth, a broken down vehicle, or bill that needs to be paid right away, having the ability to borrow money so you can deal with the situation can be a really great thing.

* No credit check. Anyone with bad credit can tell you that trying to get a loan from a traditional bank is practically impossible. Cash loans, on the other hand, typically don’t require a credit check. Instead, all you need to do is prove that you have a job and a bank account.

Cons

* Short repayment terms. Most of these loans need to be paid back within just a few short weeks. There is no guarantee that you will be better off financially by the time the loan comes due than you are now. Adding a loan payment onto your other expenses when you were already stretched to the max financially can leave you in a real bind.

* High interest rates. Lenders know that people who use these loans are typically desperate for money. They take advantage of this by tacking on huge interest charges or fees. That means that you may have to pay back far more money than you actually borrowed.

Before taking out a cash loan, you need to carefully consider whether or not there are any other options available. If you do wind up borrowing money, make sure you have a plan in place for how you will repay it.