When you’re broke and you feel like your back is against the wall, it’s easy to make bad decisions. However, there are some easy ways to borrow money fast that will help you get out of the situation that you’re currently facing. In this post I would like to cover three different types of loans that can hook you up with the money you need, as well as some caveats to watch out for with each loan type.
The route that most people will take in this situation is the payday loan. These are expensive, short term loans that will provide you with around 25% of your monthly income in cash. They are designed to be repaid on your next payday, and if you don’t do this you are facing the risk of serious debt. Payday lenders will likely charge between $15 and $30 for each $100 that you borrow, but if you rollover or extend your loan these rates will skyrocket. Along with an increase in interest, there will also likely be a ton of fees tacked on to your total payment. Most of the horror stories you hear about these loans involve the people who rollover the loan, not the ones that were responsible and repaid it on the first day it was due.
Another option is installment loans. These loans come in a few different flavors since any loan that can be repaid over several payments is considered “installment”. The fastest way to get a loan like this is through a payday lender. Not every lender is going to offer them, but if you find one that will they are generally a safe bet. Loans start around $1000, and go up depending on how much you make each month at your job. Since these aren’t considered a payday loan, the interest rates are much lower and closer in line to what a bank is going to charge you. What makes these a bit annoying though is that the lender may require that you make payments to them on each of your paydays for several months. They may also require a credit check, unlike payday loans, so if you don’t have credit you may be turned down.
The final option is the title loan. Unlike the other two discussed above, these loans are secured and use your paid off car as the loan’s collateral. A major benefit with these is that you can get a fairly large loan if you have a nice ride. Loans tend to start at $1500, and go up significantly based on the value of your car. Like installment loans, you will have flexible repayment options, which will range from a few months all the way up to several years. Since these loans are secured, failure to repay the loan is going to lead to your car being repossessed and sold. Your car becomes the property of the lender, and they are usually not required to pay you back the difference for what your car sold for and what you owed the lender.
All three of these loans are expensive, but when you need cash in a pinch they may be the best solution. Just be sure to do your homework about any specific lender you may be considering to make sure that they are not only legit, but licensed to lend in your state.