Should you borrow a cash loan online? It’s a big question that doesn’t always have an obvious answer.
Going on the Internet doesn’t always clarify things. You can always find evidence to support your point of view, thanks to confirmation bias. But if you’re willing to look hard enough, you can find just as many opinions that are different from your own.
Why is getting a straight answer this so hard? The problem goes right back to the question posed at the start of all this. Should you borrow a cash loan online doesn’t have a black-and-white, yes-or-no answer.
Same day loans are a type of loan that is processed and funded on the same day, usually with a short repayment term and high interest rates. They can be a quick solution for people in urgent need of cash, but careful consideration is recommended to avoid falling into a debt trap.
There’s a time and place when cash loans make sense. So, before you type “quick cash loans near me” into your search engine, keep scrolling to find out if it’s the right time to borrow a loan online.
Borrowing is a Grey Are: It Depends on What You Need a Cash Loan For
Financial guru and author of Rich Dad, Poor Dad Robert Kiyosaki describes good debt as something that purchases new assets or protects existing assets. When borrowed correctly, a cash loan boosts the money in your hands or prevents you from wasting more money.
In other words, it helps you afford something you wouldn’t be able to pay for on your own. In doing so, you may avoid late fines or other penalties from putting off important bills or repairs — like not being able to drive to work when your car breaks down.
Potentially Good Borrowing Examples
- Real Estate: Unless you’re as rich as Jeff Bezos, you’ll probably need a mortgage before you can buy a home. A mortgage could be a good idea, as it helps you get a foot on the property ladder and escape rental units.
- Minor Traffic Collisions: You can follow all the rules of the road and still get in a fender bender. These minor auto accidents may not be worth involving insurance, as a claim can increase your premiums. Some people borrow cash loans online to cover unexpected repairs out of pocket.
- School: Just like real estate, the average diploma is too expensive for you to purchase outright. Student loans help you afford education and upgrade your skills, potentially opening doors to increase your earning potential.
- Urgent Home Repairs: Although every homeowner should budget for routine maintenance and repairs, sometimes accidents happen. One day your water heater can burst, or your furnace may stop working in the dead of winter. If you can’t afford to fix these important appliances right away, cash loans could help.
Potentially Bad Borrowing Options
If good debt helps you protect your money, bad debt leaves you vulnerable to more money issues. The bad news is, by that definition, any cash loan has the potential to be a bad idea if you can’t afford its rates and terms.
You should always compare these fees when searching for loans online. Have your budget handy when researching options, punching in numbers to make sure you can handle its monthly payments without dropping the ball on other bills.
Since borrowing can be risky, most financial advisors don’t recommend it for non-essential reasons, like going on vacation, buying a pet, or refreshing your wardrobe when your clothes still fit.
Bottom Line: It’s a Personal Decision
At the end of the day, you have to decide if the reason you’re borrowing a cash loan will help or hinder your finances. It might be an option if you need help following an accident or buying a home, but it’s almost never a good idea for impulse shopping. Remember this the next time you’re considering a cash loan.