Quick Cash Ahead? Are you serious? Unfortunately, this is the actual name of our latest tribal lending company.
Quick Cash Ahead.
The tribes are clearly running out of company names and/or websites to purchase for their business plans. Ahoy, Quick Cash Ahead ye olde brain dead potential borrowers.
So this company is trying to put a funny and positive spin on what isn't much of a loan at all. The only thing that will happen quickly is that you will be parted from your own cash. Don't think for a second that this loan will be any kind of a reprieve, help or give you any bit of assistance in whatever financial difficulty you're facing, it will not.
Just like the other tribal payday lenders that are overpopulating the internet these days, Quick Cash Ahead is a quickly constructed website that is designed to separate you from your money. Just let that sink in for a minute. You got up and got dressed and went to some job. Most likely you earned somewhere between $8 and $38 an hour. Once you were done working you drove home and watched some tv. Everything's alright so far, you don't have any debts and you don't have any collection calls ringing the phone all night.
Now at some point you have spent too much money or you see something you really want. And you check your bank account, and the story isn't good, you do not have enough cash to purchase the item you want.
So what do you do? Well, unfortunately for millions of Americans they are going to turn to taking out loans. And since most loans are out of sight for most consumers (like all banks and all credit unions) it means that they will be forced to turn to tribal lenders like Quick Cash Ahead.
Notice the word used is "forced" when in reality it is not forced. But if the decision is made, if the consumer who wants his or her stuff, and they are going to go through with the purchase, then going into debt is going to be a forced issue.
If you make up your mind to spend money you don't have then you've made up your mind to go into debt. And if you have made up your mind to go into debt at this point in the U.S. economy then you have most likely confined and condemned yourself to traveling down the road of the Native American loan.
The end of this road is not so great because whatever item you planned on buying is now going to double or triple, thanks to the financial burden these high interest loans will effectively add to the cost of whatever the purchase will be.
So when you see the happy invitation for a tribal lender like Quick Cash Ahead you better start asking some questions, like why is this company so excited to issue me a loan when all the banks are not even letting in the door? How is it this company can issue me a loan without checking my credit score or credit history? The answer to these questions is the tremendous cost structure that are built into these loans. On average a consumer that takes out a loan from Quick Cash Ahead will be paying a 30% premium (interest) for that loan every 14 calendar days it is outstanding. If that doesn't strike you as expensive then just sit down and figure out what a loan for 12 weeks would cost.
It would be six pay periods, so we'll have a 30% payout on the principal amount you borrowed, on six different occasions. And all of this will transpire in the span of 63 days. In just 63 days you will have paid nearly double the amount you borrowed just in the interest payments alone. So a loan for $500 would have you pay $900 in the finance charges (that's the interest to carry the loan the 63 days) and of course you'll have to repay the principal amount of the loan which is $500. So out of your pocket will flow $1,400 to Quick Cash Ahead. All for the two month use of $500.
Well, at least the company is living up to their name, because they will be making quick cash off of you and anyone else who signs up, and you will be left just like the saps on the Titanic when the scout yells out "iceberg, right ahead" -- that's the only "ahead" you will receive as your financial boat smashes into the trillion tons of ice in your path.
So let's change the wording of the company to help you out. Why do you look ahead for your financial future, move quick to find some other avenue of money, and keep what cash you already have in your purse or wallet. That's your financial advice for today.
Recent Comments