Advertisements of instant financial help are scattered all over the Internet. An online application takes about two minutes, and you can start spending your money within three hours or at the latest, the next morning. If you visit the office, your loan pays out within minutes.
Most of the fast cash lenders do not perform credit checks, which is extremely convenient if you need money to survive the month, or if you are blacklisted and reputable financial institutions are not willing to help you. These cash lenders offer quick solutions, but often cause consumers drowning in debt.
Fast cash loan lenders usually target the lower-income group. The average cash loan charges 38 percent interest over a period of four weeks, that is to say, $500 add up to $690 and is fully payable within the next four weeks or at the month end. This is a large amount of money to repay at a month end, especially if one already experiences debt and cash-flow problems. The problem occurs when you have to survive the month with almost a third of your income gone.