Now a days you can find advertisements of instant financial help almost everywhere. Fill up that online application which takes approximately two minutes and start exhausting your hard earned money within couple of hours. If you manage to visit the office then your loan can be sanctioned within few minutes!
The fast cash lenders usually don’t look into your credit history. They more than often know that you are neck deep in debt and other reputable financial institutions have already denied giving you loan. Moreover, it is convenient for them to lend you money in order to survive a month. Cash lenders of such sorts offer quick fix financial solutions but are also more likely to drown you in a pool of debt.
These kinds of cash loans no credit check lenders usually go for people who belong to lower income group. Such cash loans come with fancy interest rates. The interest rate can go up to 38 percent for a period of four weeks. So if you have borrowed $500 then you will have to payback $690 that too within a period of four weeks. This is huge amount of money and can leave you penny-less that too at the end of the month. This would mean that you would have to survive on just one-fourth of your total salary.
The problem escalates when you have another financial emergency. That would over-burden you with financial crunch. With the previous debt already piling out along with the interest rate shooting high, the new one would only add to your misery. It can cost you more than 50% of your total income which is a lot considering the fact that you have other expenses to look after too!
It is like falling prey to a vicious circle of debt cycle. You go for one debt to settle your past dues and then go for another set of loans to settle the loans taken again. And you will find yourself drowning neck deep in debt. The question is whether it is only the consumer who can be blamed for such an irresponsible way of borrowing and lending?
A reputable firm or credible lending firm always analyze and evaluate the credibility of the borrower by seeing his or her credit scores and history. This is done in order to protect the borrower from taking loan which he or she will not be able to pay in future. This can lead to unnecessary stress and trouble for the individual. Thus the lending companies which are credible enough does not let borrowers fall prey of vicious circle of debt by denying them loans. Reputable agencies also have trained executives who can guide the borrowers in a better fashion as far as financial aspects are considered.
Reputable firms assess your application forms and analyze all the information furnished by you they do not claim to give any quick fix financial solutions to your monetary problems. After going through every speck of information they conclude whether you should be given loan or not. Are you actually ready for repaying the loan amount along with the interest rate. They also figure out the debt to equity ratio in order to reach a concrete conclusion.
The debt to equity ratio is the ratio of contributions by creditors to the contributions made by the existing or new shareholders. An analysis of results found using this formula can help you assess whether or not are you ready for having a loan.
Take Control of Your Money
It is always better to take control of your hard earned money in order to save yourself from drowning in debt. Take into all the expenses which are mandatory for you to make and then deduct it from your net income. The income so left would be distributable income which you can use for repaying your debts. You can even save this money as it is always smart to save money well in advance for meeting future contingencies.