These days, most people do not have a large lump sum of cash sitting in their checking account. It simply isn’t a good choice – if money is not invested or held in a fund, it is at constant risk of becoming devalued by inflation. In essence, money that isn’t being used is only becoming less valuable.
While the fact that most people are so financially literate is definitely a good thing, not having particularly liquid funds can definitely have its drawbacks. The most obvious problem is that life is often unpredictable, and there’s not telling when something might happen that requires immediate payment to fix. In these situations, even the most careful savers and investors can find themselves in a bit of a jam.
While traditional loans are a good way to get access to a large sum of money if you’re willing to prepare well in advance, the slow speed at which applications are processed makes them not a viable choice in emergency situations. The constant deliberation process which comes with getting a bank loan can often take months, time which just isn’t possible when you’re in an emergency.
In these sorts of circumstances, quick cash loans can sometimes be your best option. These loans are offered by companies that specialize in providing money for short term needs. They generally feature lightning quick application processes that do not require a large amount of personal information to complete. Often, businesses that are dedicated to providing funds fast will be able to get you your money in less than a day’s time from the beginning of the application process.
The problem with quick cash loans is that they are built on a somewhat predatory system. While the loan process works without a hitch if you are certain that you’ll have access the the amount lent plus interest within a month’s time, not being able to pay up promptly can lead to an ugly hitch in interest rates. Without proper management, the debt can grow to exorbitant sums that quickly become impossible to completely pay off.
In essence, quick loan companies are able to provide money fast, which can be an extremely useful service if you suddenly find yourself in need of a few hundred dollars. But they should always be taken with prudence, and never agree to a loan that you don’t think you’ll be able to pay off anytime soon.