Part Four: Cash Advance - Both Sides of the Coin.

STICKY SITUATIONS YOU CAN GET YOUR SELF INTO

Until now we have seen how cash advances can help us. What comes now is the explanation of the caveat that was stated in the opening paragraphs. When the lenders lend you money, they expect to make a profit on that like any other institution. The average interest rates are typically between 390% and 780%. Now these interest rates are not going to harm you as long as you don’t abuse or misuse this system. What I mean by that is that it is going to be all-right if you repay the loan. Otherwise, “all hell breaks loose”. Overtime, if you don’t repay, these sums of cash accumulate and it makes it hard for you repay then (remember this is compound interest, it adds up fast!). The high interest rates make the problem worse by making the cash accumulate exponentially. Soon you can be in a situation where you are so far in that you simply cannot see the light of the day. And then it would be too late to do anything. Worse yet these things go on the credit report and they stay on your record preventing you from having financial freedom that you are entitled. You know how hard it would get if you have a bad credit report. Things like getting a car, or buying a home would be deemed impossible. And most of all you lose trust, which is very hard to gain back. Things like not repaying or delaying payments lead to these tragedies. If you observe carefully it was a mistake on the part of the borrower. The borrower should have responsibly repaid his loan or repay the loan detrimentally. The borrower must behave responsibly so that either of the party is not hurt

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