Category: Personal Finance

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Fast cash companies can offer fantastic interest rates

With many people finding themselves in difficult financial situations since the crash of the credit markets in 2008, unsecured loans offering quick cash are becoming more and more common. Many people are turning to the organisations which offer unsecured personal loans, requiring no collateral and offering fast cash within a few days of taking out the loan, in order to cover holes in their personal financial schedules. Perhaps the day of the month that rent is due comes a few days before the day when the borrower’s salary comes in, or perhaps a sudden and unexpected expense – repairs to a car, home or appliance, a business opportunity too good to turn down, or the deposit for a holiday or tenancy agreement – needs to be covered with emergency cash. This is the point at which borrowers start trawling the internet for cheap loans which they can use to tide them over a few crucial days or weeks, and which won’t cost the earth in interest rates.

It’s the level of the interest charged on loans that makes some people worry about short term unsecured loans. These types of loans are always quicker and easier to arrange than secured loans, as there is no valuation of the property or ‘security’ to be done, and there’s usually a fairly simple standard contract. People who take out unsecured loans will often find the money in their bank accounts within a few days of signing the loan agreement, and some specialist ‘emergency’ lending firms will even make the transfer within a few hours of the contracts being signed. This is great for people who are in a financial emergency. But unfortunately, borrowers can often get carried away with the speed of the lending process, and forget to check the other important factor in loan provision: the level of interest charged on the loan.

This is what people mean when they talk about ‘cheap loans.’ Very few organisations charge a flat fee for borrowing (the exception is some Islamic financial services, as interest is prohibited under Islam), so ‘cheap’ in this context refers to the percentage of the loan charged as interest. Some unsecured loans can be very expensive, with several hundred per cent interest being charged. However, for those wise consumers who shop around, quick cash can be obtained on a relatively low interest rate. And the quicker you repay the loan, the less time the interest will have to mount up – so if you take out a fast cash loan, paying it back equally as quickly could mean that you end up paying very little in interest.

Please visit http://www.cashgenie.co.uk/ for further information about this topic.

http://www.cashgenie.co.uk/

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How to look for a quick cash advance if you find yourself in financial difficulty

Getting near to pay day can be a frightening business.  It often seems that more and more bills are having to be paid while the amount of money in the bank is going down.  For some people in this situation, the best way to make sure they can pay the bills is to get a short term loan until their next pay day.  There are a few companies which will offer you a cash advance, and there are a few things to be aware of when choosing which one to go for.  Some companies will offer instant loan approval, while others will focus on the immediacy of their service or their high approval rate.

These companies can appear something of a minefield to the first-time borrower, so it is worth doing some careful research.  Pay day loans, or advances as they are sometimes called, are basically a form of bridging loan to tide you over, as the name suggests, until your pay day.  Usually that is when the full loan plus interest has to be repaid.  Some lenders will differ this or roll the loan over a second month, but it is important to be aware that the interest rate is generally very high.  There are lenders who charge around £25 per £100 borrowed, which is worth knowing when deciding on the lender.  Pay day loan amounts usually range from £80 to £1,000; companies offering the service can often give you an answer in minutes, and the money will be in your account very quickly.

Pay day lenders who specialise in this do have certain customer criteria, but the forms tend to be straightforward and not too detailed.  If you happen to have poor credit history then pay day loans may not lend to you, as they use credit reference agencies.  Typically, in order to receive a pay day loan you will need to be over 18 years old, in permanent employment and earning more than £750 per month.

This kind of short term loan can be used for anything, as long as you are comfortable with the repayment date.  As with any kind of cash advance though, it is important to ask yourself ‘do I really need this?’ before you pay for your car repairs or get a new television.  Sometimes the problem with instant loan approval is that it makes the lending process so easy that people are tempted to give insufficient consideration to the financial transaction they are entering into.

Please visit http://www.cashgenieloans.co.uk/ for further information about this topic.

http://www.cashgenieloans.co.uk/

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Cash Genie, a responsible loan company

Cash Genie have been offering payday loans for a number of years now. As such, they can provide you some breathing time if you have debts that need paying. However, they are not designed to be a permanent solution. As a responsible lending company, they know that it is preferable for their clients if they are only used as a last resort, and even then only once. The best way is to lend the cash to tide people through their problems, but also to give them the strategies they need to avoid coming back again.

To a degree, this is really just smart business sense. There’s a maxim: you can skin a sheep once, but you can shear it many times. It is some lenders’ aim to keep their clients in debt long-term (think your friendly neighbourhood doorstop lender…), thereby collecting the interest indefinitely and ensuring that you are never free. However, this approach (and the broken legs that can come as part of the deal) has to be balanced again the chances of defaulting.

Cash Genie works on a 30-day basis. Their loans are for one month only, and the cost is 30 percent. This is a lot compared to high street banks – if you can gain a loan from them. However, it might be less expensive than the alternative (missing a payment or bill and getting fined, for example). In any case, the loans are not supposed to be long-term. The idea is that you have access to the funds you need to get you out of temporary financial trouble – and don’t come back the next month. In particular, continuing the debt over for another month is a very bad proposition, especially if that continues for several months. A debt of £100 would become £130 by the end of the first month, £169 by the end of the second, and £2,330 by the end of the year. (In practice, you are limited to £750.)

Put simply, someone who uses a short-term loans business again and again is probably someone who isn’t really good with money. In other words, they are someone who is more likely to default on their debt, and that’s not good for the client or for Cash Genie. It therefore makes sense to shoot for the sector of the market who need a loan due to temporary adverse circumstances – not through any inherent financial illiteracy.

Please visit http://www.cashgenieblog.co.uk/ for further information about this topic.

http://www.cashgenieblog.co.uk/

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