Cash In A Flash - Money Trap or Good Deal?

You've probably come across the multitude of fliers being handed out.

Is it a money trap or a good deal?

At the very least, it's not a scam (or at least some of it isn't). The loans are typically offered by savings banks. One is even offered by a subsidiary of a big bank. The others are possibly subsidiaries as well.

These loans are a form of no-collateral loan. They give you money (and pretty quickly, if their ads are true), and you don't give them anything back - except for a huge amount of money as interest on the loan.

But a large interest is normal for unsecured (no-collateral) loans. And it's usually still smaller than the interest you'd have to pay on your credit card for cash advances or overdue payments.

So this deal isn't really bad.

And if you use it to make money and can eventually make more than the interest, then it's actually a good deal (assuming that no other type of loan or line of credit is available to you).

More often than not though, it would be a better idea to just stay away.

If the money is for a house/lot, vehicle, or business, there are other types of loans that would have lower interest.

For travel fare, gadgets, or other retail items: it's better to save up and then buy. Not only will you pay less overall, you'll develop a habit that will keep you out of debt.

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photo credit: unloveablesteve via photopin cc

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