Weekend cash loans are new financial alternatives available to people to pay for their emergencies on weekends too. Though payday loans promise a same-day approval when you place a loan request, they cannot serve the need when you need finances on weekends. Covering the drawback of the online loans emerged weekend cash loans.
The Truth About Weekend Cash Loans
Weekend Cash Loans are designed to help people in any emergency they encounter. The borrower who is applying for the loan online need not worry about the operative hours of the business. The loans can be applied and get approved on weekends too. These loans are no different from online loans, but they tend to be different in just the business operational hours. These weekend cash loans, too, are regulated by the Australian credit union and are capped in the limits of $500 to $5000 and bounded to repay in the installments starching over a period of the year. These loans, too, are risk-free as they demand any collateral pledge for approving the loans, and there is no extra free running the business operations on weekends. However, intense competition between the lenders online prone the borrowers to trap, which is the most cautious aspect you should look out for when you apply for payday loans online.
How To Avoid The Payday Loan Debt Trap?
Payday loans have intense competition, and there is always a possibility of a trap. Here are few instances where you could get stuck in a debt trap.
Extended Payment
A debt trap in the case of weekend loans occurs when you fail to repay the installment as scheduled. The penalties for nonpayment of the installments are quite high. Either you pick the rolling option or delay the repayment of the installments, the penalty will be big, and being unable to clear the big bills on time, you will be stuck in a debt trap. You should choose the loan tenure wisely, considering your current budget while spacing up for emergency funds.
Use Other Financial Options
Many people use other financial alternatives like credit cards and Personal Loans to clear the debts, which will push you further into the debt traps as you will be liable to handle repayment of both the loan in the next installments. Failing to do so will pull you into debt traps which turns quite complex to handle.
Approaching Illegitimate Lender
A lender who is running the business online has to be quite legitimate in their offerings. They should be transparent in their offerings. If you fail to pick the right one, probably you might be trapped in debt as there will be an unnoticed surge in the cost of the loan, and you fail to manage your big EMIs, compromising mandates in your budget.
