A Cash Loan to the Rescue
Not everyone is blessed to save enough money from their paychecks. Your salary is either just enough to make ends meet, or you have a lifestyle that must be met at all cost. Either way, you are not immune to coming across emergency situations that can tax your savings, exhaust your credit card limit or just leave you out cold without cash.
If you’re one of the many now suffering from the credit crunch, you know what it means to be out in the cold. It can really be tough to go through life without credit cards. Just about all the retail malls and chain shops, hotels and restaurants, hospitals and service shops transact with credit cards. The last thing you would want would be to lose your precious credit cards. One of the easiest ways to do it is to be delinquent in your payment.
If you find yourself in such a predicament where your credit card bills are mounting and you have just enough to pay off their minimum, you’re in a bind alright. Paying the minimum amount will guarantee that you will soon be at the mercy of credit card interest rates.
So it may be worthwhile to consider availing of a cash loan to pay off a credit card in full. But only if the loan will allow you to pay the full amount. And only if, based on your projections of only being able to pay off minimums over a certain period of time, the rather hefty interests on the loan will be able to offset that. Example, if you can’t possibly pay off in 4 months, at credit card interests rates of 3.5% per month, your $500 balance will cost you 14% of $500, or $70. But if you can find a lender for 14% on a $500 loan, you would better of taking that cash loan. Because on the 5th month, you would still need to pay off the credit card balance with interest on top of having paid the 3.5% monthly for the next 4 months.
When not to take a loan
That’s one of the few good reasons to take out a cash loan. But here are some reasons for which no interest-bearing loan is justifiable.
- You want to give a friend or love one a special gift that’s just once in a lifetime. Quite sentimental alight. But it’s a poor excuse to go for a high interest short term loan. Your loved one wouldn’t want you to be in debt on his or her account.
- You just have to get that appliance you can’t seem to be able to save for. If you can’t save up, say, for a $1000 appliance, there’s a good chance you will have great difficulty paying off a $1000 loan. It’s that simple.
Control Yourself
Always consider a cash loan as your last resort. That may be easier said than done. Making both ends meet these days can be a real challenge with the salary you have and it’s great to know that you can always avail yourself of this loan against that salary when you need it most. But don’t abuse or misuse this great facility. Surviving on a salary, however meager, requires radical adjustments to the lifestyle you have known. And when you are in dire need, lenders would be more than glad to assist you.