Obviously when you get a loan on your car, you want to practice saving the money each month and sending a cheque out a week ahead of time. In an ideal world, this would happen. On average, most car loans ask that you pay ? 100 - ? 300 depending on what type of vehicle you've purchased. You may be the most reliable borrower yet, but if you have a particularly difficult month with some unanticipated expenses, you're in for some real trouble with your car loan lender and you had better seek a
pay advance to cover your assets!
There are two types of loans: secured and unsecured. Your car loan is a secured loan, meaning that the lender is legally entitled to take your car away if you fail to pay them. Most people don't realize that ONE missed payment will warrant a repossession man coming to your house to tow your car away! If this happens, you can expect to pay an exorbitant towing fee and double your monthly payment to get the car out of impound. If you can't come up with this cash within a week or two, you can officially kiss your car goodbye! Sound frightening? It is!
On the other hand, a pay day advance is an unsecured loan, meaning that there are no liens on any of your assets. If you cannot pay the lender back on time, the lender cannot take your house, cannot take your car or cannot hurt you financially. What you can expect is that the lender will triple your interest and whack you with a nonpayment fee. However, pay day advance companies are quite reasonable and will generally give you a little extra time if you need it and let them know that you need it before your 14-30 day repayment term expires.
So when you find you may come up short on your secured car loan, a pay advance is a smart way to help you avoid disastrous short-term and long-term consequences. Many times if you can pay the pay day advance back before the due date, you won't pay any interest at all (much like how a credit card works). What makes pay advances a bit smarter than a credit card is that they encourage responsible borrowing and repayment. Unlike credit cards that can trap you into a cycle of paying off minimum monthly payments, borrowing outside your means and accruing serious interest... a pay day advance asks that you only borrow what you need and pay back the lender on your next payday, all the while retaining your financial independence.
