No fax cash loans are basically payday loans. Payday loans are short term loans provided to you meant to be returned on the next payday. For acquiring such loan, you do not have to show your credit ranking or provide any document. The idea is to run to any payday counter and collect it or may be send an application or telephonic request and it will be sent to you the next day.

Though the loans are meant to be an emergency solution, people use it for fun and get trapped in a debt-circle. It is their onus to return it on the payday but they keep paying it and taking a fresh loan the next day. This amounts to an interest lag which becomes equal to the principal.

Such loans are heavily criticized for exploiting the needy as the interest rates are very high; sometimes 15 percent a month. This means that if you keep it for seven months, it will become more than the principal itself.

This entry was posted on Friday, February 13th, 2009 at 1:00 pm and is filed under Loans & Finances. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.