Do you understand what the actual cost of a personal loan is? Personal loans can be more expensive than cash advance loans, and people are so certain that cash advance loans are the worst loans available today . The thing that people do not think about is what you pay in interest over the years you have the personal loan.

What most people understand is that when they receive fast cash loans they have to pay the cash back really quickly, and this normally means that the interest on the cash borrowed is rather high. So let me explain something to you. If you were to borrow $2000 from a cash advance loan place it will most likely cost you $300 in interest and you just have the loan for 2-4 weeks. So that’s pretty expensive, right, well let’s see how much a personal loan will cost you. If you borrowed that same amount of money depending on what your credit score was I would expect your interest rate to be around 10% so if you had to pay back $100 every month for 20 months you would wind up spending $200, that isn’t a whole lot better than a cash advance loan.

But even though cash advance loans and personal loans are kind of close the problem is what happens if you miss a payment, you’re charged fees, and you get that late payment or missed payment sent to the credit bureaus and it will bring your credit down. And on top of all this sometimes your other credit card rates will go up and you’ll owe more there as well. So just be careful because being late a personal loan really makes a ripple effect that nobody can slow down . So next time you’re needing a loan think about a cash advance loan because they could end up saving you lots of money over the years.