No one wants to borrow money – it’s a bad idea. Of course it can help sometimes, and occasionally there’s just no alternative (who would be able to buy a house without a mortgage, for example?) but generally speaking, it’s a last resort. Borrowing money is expensive. That cost can be a few pounds, or a few percent of the original loan, in the best cases; in the worst, it can double, triple or even worse the amount of money you borrow. Pay off a regular credit card at the minimum rate, for example (2 percent or £5 minimum), and the amount of money you actually end up paying will be around three times higher than the amount you borrow. Under those circumstances, that pair of shoes or flatscreen TV you put on the VISA don’t really seem such a great buy after all. Cash Genie is a commercial lender, so it’s worth knowing exactly what debt you’re taking on, but in this case it’s simpler than usual.
For example, loans are for one month only. You’ll pay 30 percent for a sum of money between £75 and £750 (that is, paying back £100 to £1,000). That may seem expensive, but the arrangement basically means that the cost is a flat fee: these loans aren’t meant to be rolled over like a long-term loan, in the same way that a credit card or mortgage is. You pay the 30 percent and that’s it: there’s no room for compound interest – that nasty reality whereby interest is paid on interest as the months go by – which can stretch a credit card bill out for years.
30 percent is a high rate for a month (although there are lenders who will charge you much more) so the way to figure out whether it’s worth it is simple: if you don’t take the loan, will you end up paying more than that fee in other ways – for example, fines for missed payments, or the loss of vital services? If so, and there’s no other option, taking the Cash Genie loan simply makes good mathematical sense. Ideally, it’s going to be a one-off that gets you out of trouble, and gives you enough breathing space to put some budgeting processes in place that mean you won’t have to rely on loans in the future. That’s the nature of short-term loans, after all: they’re not supposed to be an ongoing feature of your life.
Please visit http://www.cashgenie.co.uk/ for further information about this topic.
http://www.cashgenie.co.uk/
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