A quick cash loan is your solution to a financial emergency. Quick cash loans are easy to apply for and are usually paid into your bank account within 24 hours!
Emergencies and cash flow shortages happen to the best of us and although it may be relatively easy to get a quick cash loan in Australia – it’s not something that you want to get into the habit of doing.
Using your Credit Card to handle a financial emergency
If you haven’t reached or exceeded your credit card limit, you can easily solve your cash flow problems by using your credit card. This is a suitable option if you don’t need a very large sum of money, like if you intend on consolidating very small, high interest debts or if you need to make a certain retail purchase, buy a plane ticket or pay for a minor medical procedure.
You will have to pay a certain percentage of the total amount that you use which would have been explicitly specified along with your limit when you accepted the credit card offer.
The benefit of using a credit card rather than taking out a personal loan is the relatively low interest and flexible repayment options when compared to other quick cash loan options.
Perhaps the most notable benefit is that you’ll have instant access to cash – a luxury that only a credit card can offer.
If you manage your spending correctly and have the determination to make sure your debt doesn’t get out of control you may also consider using a balance transfer to avoid having to pay any interest at all.
Taking out a Personal Loan
Applying for a personal loan with your banking institution is always one of the first options you should consider.
This option will certainly not get you access to instant cash, however, if you're not heavily in debt and have a good track record with your banking institution you could have a loan within a few hours.
A personal loan can take the form of both an unsecured and a secured loan – the latter being slightly more popular due to the fact that you do not have to put up collateral to secure it.
It may be worth mentioning that a secured loan will generally offer you more money at better rates than an unsecured loan since the lender takes on a greater degree of risk by borrowing you money without any guarantee that you’ll they’ll be able to recover their money.
Home equity loans are most likely the best in terms of the amount that you can borrow, interest paid and repayment plans – this is simply as good as a personal loan gets and if you own your home and need a fairly large sum of money.
Personal loans can range from $500 to a whopping $100,000 and are also available at credit unions and other non-traditional lenders. You will have the option of going for either a fixed or variable interest rate.
A fixed interest rate will ensure your monthly repayments remain stable and predictable, while a variable interest rate may save you a huge chunk of change in the long term, provided that the market remains favorable.
There are, however, many lenders who offer bad credit loans with reasonable repayment terms.
This is certainly a better option than most other forms of credit since it offers you a longer repayment term, reasonable interest rates and a fairly decent chunk of cash.
Making use of a Payday Loan
This is the most popular option for people with bad credit since the only guarantee you need to give the lender is that your next paycheck will be enough to pay the loan. The amount that can be borrowed will depend on your monthly income and since loans can vary from $100 to $1500, it offers a fairly decent amount that can, it most cases, cover a financial emergency and tide you over for the month.
Really fast approval.
Another reason that this is such a popular option amongst Australians is that it’s almost instant.
All you have to do is fill out a simple application form and you’ll be approved within the hour.
Payday loans come at a huge cost; apart from carrying unbelievable high interest, if you don’t repay the loan as and when agreed, you’ll pay hefty penalties that will certainly worsen any financial woes that made you take out a loan in the first place.
You must also be aware that some payday loans are simply more expensive than others – compare a few offers before clicking on the submit button, it will make a huge difference.
The Notorious Logbook Loan
It may sound like something out of a movie but logbook loans are very real and very tempting to people experiencing cash flow difficulties.
A logbook or title loan requires you to give up ownership of an asset (your car) in exchange for a loan, if you don’t make the repayments you’ll end up losing the asset. This generally takes the form of giving up the title to your vehicle in exchange for a very expensive, very non-flexible loan and lenders will not borrow you more than half the market value of your vehicle.
The majority of people who opt for a logbook loan have very poor credit and simply can’t find another way of borrowing money; this is because most logbook lenders will not carry out a credit check and this more often than not, ends up putting them in even more serious and devastating financial circumstances – so consider any and all other options before this one.
Apart from a super high APR you will lose your vehicle if you don’t make the agreed repayments. Another way that you can get your hands on some cash fast is to pawn a valuable item at a pawnbroker.
You may never get the actual value of the item but most movables are fairly disposable and one can certainly survive without them.
Alternatives to taking out a loan
There are many alternatives to taking out a loan and if you can opt for any of these you will certainly make life a lot easier for yourself in the long run.
My personal favourite would be to arrange a salary advance with your employer. This isn’t something that anyone wants to do but it will ensure you can get the quick cash you need without having to pay any interest, penalty fees or even worry about repaying the loan.
Most employers would be willing to allow this provided that you don’t abuse this facility by asking for an advance too often. If your employer isn’t willing to help you out than consider borrowing some money from a family member or friend, they also won’t be charging you any interest (unless you explicitly agree to do so).
You could also consider selling some items that you no longer need or want in order to avoid taking out a loan or borrowing money from those around you.