Money Today or Late Fees Tomorrow
No body likes to pay late fees on their bills. Late fees are the added charges on monthly bills that businesses like to apply not only to be sure people pay on time, but to fill their pockets for doing nothing. There are all many reasons that people get charged late fees for, but one of the most common is that the person just didn’t have the money to pay it. However, there are things that people can do to pay their bills on time and limit the late fees, but is it better to pay the late fees or get cash advance loan?
The following information looks at both cash advance loans and late fees to give people details that will help them make the most out of their situation.
Cash Advance Pay Day Loans: These loans are short-term financial fixes that are provided to people with no credit check, and the money is deposited directly into their bank account usually within a couple of hours or on the same day.
How do cash advance pay day loans work? People can get cash advance pay day loans on the Internet or in person with nothing more than their bank checking account and ID. The cash loan is secured using a bank account number and borrower gives the information to the lender and gives them access to the borrower’s bank account. Lenders can guarantee that the loan will be paid back by having the checking account information and ability to take the money when it is due. Instead of charging interest, lenders charge a fee for the service. The service fee can vary from state to state so it’s good to check with the local laws before getting a cash advance pay day loan. Most states have regulated fees between $15 – $25 per $100 borrowed. Which means that if a person takes out a $100 cash advance loan, they would need to pay back $115. A $15 dollar fee for the convenience of having $100 deposited directly in a bank. However, the full loan amount needs to be paid back by the next payday, or within 2 weeks, and thus the reason they are called a short-term loans. However, for a person that has to pay bills, and the bills charge late fees, paying a $15 fee instead of the late fees doesn’t sound so bad, or does it?
How do late fees work? Late fees are charged to people when the don’t pay their bills on time. Most companies will charge some sort of late fee, and the fees can vary between $10 to as much as $50. Most credit cards will charge between $25 – $40 and it doesn’t matter what the balance is of the account or the amount due on the bill. This means that even if the amount owed is only $20 and a person pays late, the credit card companies will still charge the same late fee, and in most cases will be more than the bill itself. In addition, if a person has two or three of these accounts due and doesn’t have the money to pay them, they will be charge several late fees that could total as much as $100 or more. In addition, they still need to pay their bill that is due, but is now due at more money. Plus, if a person is near their credit limit, and they don’t pay on time, the credit card company charges the late fee on top of their existing balance, and if the fee puts the account over the limit then the person will be charged an over the limit fee as well. This means that not paying a $20 bill on a credit card could result in a $40 late fee, plus a $40 over the limit fee, for a total of $100. Now, the next bill comes due and they have to pay the $100 plus the next month’s bill of $20, for a grand total of $120.
Looking at these two financial situations, the person who pays the late fees haven’t gotten anything from the money they paid. Instead, they are paying $80 in fees, and $30 in balance payments, whereas with a payday loan they would get $100 upfront to do what they want. The person can pay their $15 bill, saving them $80, and still have $85 dollars in their pocket for some fun until the next pay day.
Another big difference between cash today and late fees tomorrow is the credit history. If a person doesn’t pay their bills on time it will effect their credit negatively, making it harder for them to get good credit in the future. Whereas, a cash advance loan doesn’t go on credit and the person is able to pay their bills on time keeping their credit history in tact. Even if a person doesn’t pay back their cash advance loan on time, they will be charged additional fees, but it won’t effect their credit or even show up on their credit, versus a credit card which impacts a person’s credit score monthly.
If a person has to decide between getting cash today or paying late fees tomorrow, the better choice would be to get the cash today and start paying bills. Credit is not something to mess around with and not paying bills is the worst thing a person can do to their credit. In addition, the late fees alone are enough to put people further into debt as they try to make their bills and keep up on the late fees.
Don’t wait till it’s too late, get cash today and pay the bills on time instead of paying late fees.
For those that are looking for a cash advance loan, Cash Advance Reviews provides the best online payday loans from the top rated cash advance sites.
