There are many households today living paycheck to paycheck. These families barely have enough money to pay the bills each month, and many of these families’ budgets are disheveled the moment a financial emergency arises. Whether it’s an emergency car repair, or an unexpected medical bill, even a few hundred dollars could set you back for the next few months.
Fortunately, there are financial resources that can be relied on in your time of need whether you have perfect or poor credit – short term loans. Short term loans, often referred to as cash advances or payday loans, can be beneficial… when they are used correctly.
A Quick Fix When In Need
When you’re in need of a few hundred bucks, one of the easiest ways to get these funds is to apply for a short term loan online. There are literally hundreds of companies across the country that advertise attractive short term loan offers. When consumers in need see things like, “Bad credit ok. No credit check. No employment verification” many are swayed to apply.
An instant approval will get you a few hundred dollars to handle whatever financial emergency you have. So what’s so bad about these types of loans? Nothing… unless, of course, you fail to be a responsible borrower.
Take, for instance, these most common mistakes listed below:
1. Failing to Review and Understand Interest Rates and Fees
When you’re in a financial jam, chances are you’re not thinking about what you’ll need to pay back. In the heat of the moment, all you’re concerned with is the amount of funds for which you can be approved. Many consumers skim through the contracts and simply sign so that they can receive their funds.
However, the interest rates and fees are extremely important and will need to be repaid as well. For instance, for every $100 you borrow, the lender may require you to pay back $30 extra. This means for a typical $300, you’re looking at a total of $390 to repay the loan.
