Quick Loans - payday, sale-leaseback and more
Where to source quick loans
There’s a whole host of different reasons why you might need a quick loan, but most involve some sort of unexpected/ emergency financial outlay. The marketplace is deluged with companies specializing in quick loans, but some of them are more economical than others. Hence it’s a good idea to take a step back and invest some time in finding the best possible deal.
The obvious way of raising cash in a hurry is with your credit card. Admittedly APRs are high, but for short-term borrowing they can make financial sense. If you’re already ‘maxed out’ it’s worth asking for an increase, but make sure that you know what you are getting yourself into. If you don’t have a credit card then you’ll have to look elsewhere.
Homeowner you should be able to organize a quick equity loan that uses their property as security. Because lenders view this type of loan as less risky than ‘unsecured loans’ you can expect considerably lower interest rates.
If you’re in regular employment you should qualify for a payday loan. Variously known as cash advances and deferred deposit services, payday loans are one of the easiest (and most expensive) ways of getting hold of money quickly. To apply for a payday loan you’ll need a payslip and a bank account and can typically borrow up to $1000. Come payday the initial sum is debited from your account along with a loan fee. If you can’t pay back the entire figure you can normally ‘rollover’ your debt until the next month, but costs soon mount up.
Similar schemes operating in some states are known as sale-leaseback loans. You go into the store and apply for a cash advance. On the application, you write the serial number of an appliance, such as a television. You agree to transfer ownership of the appliance and rent it back until you repay the loan. Comparable practices also operate with motor vehicles. This type of loan is really designed to circumvent state laws against payback loans.
The last place to raise a quick loan is the pawnshop. The pawnshop will take a personal artefact (such as a lawnmower or TV) and lend you some money according to its ‘value’. If you don’t pay the loan back the shop owner will sell your ‘deposit’ and pocket the profit. The money lent is usually only a fraction of the true value of the original item.