Cash loans are an appealing form of borrowing for people who are on a low income and those who cannot obtain more mainstream credit, but they can be incredibly expensive.

With some cash loans, the interest rates can be the equivalent of a thousand percent or more per year – of course, since the loans run for only a short period, you don’t actually pay that much, but it’s still the case that the total cost of the loan is massive compared to what you would pay if you took out an authorized overdraft or a more mainstream installment loan.

Why You Should Avoid Cash Loans

There are occasions when a cash loan would be a good idea. If you aren’t a member of a credit union, and your bank won’t lend you money, but your car has broken down and you cannot get to work without it then taking out a loan makes sense. For more information on cash loans visit http://www.best-cashloans.com/. However, if you’re just looking to borrow to go on holiday or buy a gift for a friend, then you probably shouldn’t try borrowing money. Getting deeper into debt as someone on a low income and with a poor credit rating is an incredibly bad idea when the debt would be for a non-essential expense.

If you don’t need to borrow now, try putting aside even a dollar or two per week. Stop buying coffee on the way to work, and use the kettle in the office to make drinks instead. Stop snacking on chocolate bars, and eat cheaper fruits. Walk instead of drive if you have the option. Cut your cable package. These small expenses will quickly mount up, and you will eventually save up enough money so that you don’t need to keep borrowing to stay afloat. It will take time, but it is worth it.