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Cash advance loans are just one choice among many
The quick cash industry is thriving these days, as more and more people struggle to make ends meet. The stores that sell these pricey financial products are seemingly on every street corner and they make it very easy to borrow sums of money ranging from $100 to $500 on a whim. True, the price is dear, with interest rates that can run as high as 100% per year, but it’s an easy way to get money in a pinch.
Of course, on the downside, they can be quite difficult to pay back and the stories of people who are juggling as many as 15 such loans at a time are rampant. So what if someone needs a quick source of cash but doesn’t want to take on the risks associated with cash advance lending products? .
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There may be some other choices available, and we will outline them below:
- Credit Union Loans - Many smaller credit unions are offering short term loans that can compete with payday products. These lenders tend to offer much more competitive interest rates; often less than 20% per year. Some may encourage you to seek financial counseling if you make frequent use of these short term products. More and more credit unions are starting to offer them, so check with your local branch. They may have a solution for you.
- Credit card advances - Many credit cards will permit cash advances. The interest rates are higher than for purchases; they typically run about 30% per year. On the other hand, if you obtain a personal identification number, or PIN, you can obtain the cash from any nearby ATM. Even if your credit is poor, you can probably qualify for some type of credit card, as there are many card issuing banks that specialize in providing credit cards to people with poor financial histories. It’s worth the time and effort to find them.
- Employers - Some employers will grant occasional advances to employees. This would amount to an interest-free loan, should your boss be willing to help you out. You probably cannot make a habit of this, but your employer might be willing to help you out on a one time basis.
- Family and friends - Not always the best source of cash, but you may find that family members can find a couple of hundred dollars to help you out in a pinch. This is not a bridge that you want to burn, however. If you borrow money from friends or family, make sure that you pay it back or you may find yourself spending your time alone.
These are just a few options available to those who have a short term need for some quick cash. While the availability of these options will vary from person to person, all of them will be cheaper alternatives than the 400% (or more) cash that you will find at your local quick cash store.
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