Advantages And Disadvantages Of Cash

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Finding yourself short on cash can be highly stressful and more than a little embarrassing. Unfortunately, today's economic woes have caught many families unprepared to pay for higher than average expenses, unexpected purchases, and ever-increasing medical costs. Something as simple as a flat tire or a trip to the doctor's office can disrupt a family's financial situation. Very often, credit card and payday cash advances are used to carry the family through these rough times, but there is a better option: auto title loans. Instead of racking up even more debt on a credit card that is already stretched to the limit or getting a payday loan at astronomical interest rates, equity loans on car titles are fairly easy to acquire, do not require…show more content…
These large purchases are investments in valuable property. Banks are able to offer lower rates because the item being purchased is valuable and can be offered as collateral, which provides security to the lender. These are called 'secured' agreements. Unsecured agreements are those made without any collateral, thereby increasing the risk of repayment to the lender. As a result, they come at a higher…show more content…
Credit card cash advances often require the payment of fees and the interest rate is higher than for purchases. Also, many card holders do not realize that their payments are applied to purchases first. The cash advancement debt, held at a higher interest rate, is not paid until all of the purchase debt is paid off. This means that the more expensive debt is around for a longer period of time, incurring a greater interest expense. Also, if the interest charged puts a borrower over their credit limit, they are also hit with penalties, interest on the penalties, and so on. The cycle can be devastating. Unlike credit card cash advances, which come without the fees, higher interest rates, or risks to your credit rating, equity loans on car titles are convenient, secure, and affordable. Payday advances use the fact that a person has a job as reason enough to approve a loan. This convenience comes at the highest price allowed by law. Interest rates on payday advances can be in the thousands, once the rate is calculated over the period of a year. This means that the amount paid back can be many times the amount that was borrowed in the first place. Equity loans on car titles, however, offer low interest rates, reasonable payment schedules, and the freedom needed to get back on your financial
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