Why large personal loans might not be for you

Access to cash within 60 minutes, a 5 minute application form and the amount you borrow tailored precisely to your needs – these should really be the fundamentals of a new school personal loan. This is what I would expect from finance providers these days.

The banks are miles behind in the issuing of small loans. Generally when we hear the word ‘personal’ used in reference to other products, we imagine a product that caters to our needs. When it comes to loans it seems like this isn’t the case. Long application forms take hours to complete, then it ‘may’ take 2 days to process. This doesn’t sound too new school to me.

Consider this – you’re shoe horned into taking out a loan of several thousand dollars, but do you really need all of that? Years later, when you’ve paid it off, you probably won’t even remember what the loan was for in the first place.

More and more people are taking small personalised cash advances – which they can get in minutes instead of the traditional ‘old school’ model which is found in the Australian market. With these little cash advances, you get it super fast and you get just the right amount – not an extra slab on top that you’ll be tempted to blow away – only to be stuck repaying it for years. Think about this seriously for a second.

Then there are credit cards. The problem with them is that they try to lure you in bells and whistles, generally trying to distract your attention from the substance of the offer. Often times the number of card holders, having your picture on the card takes away the attention from what the long term interest rate is. After all that’s the biggest cost.

The other problem is you need discipline to manage a credit card properly. In some ways it’s just like getting a larger personal loan. You can access more credit than you really need, so every time you go to shopping mall your self -discipline is being tested. Then each month at repayment time, it’s tested again. It’s so easy to just pay the minimum payment and put repayment of the balance off until later.

Ideally a credit card should just be a backup overdraft used for a variety of purchases. You should really fully repay it and only have an outstanding balance for a few months at a time – not a few years at a time. In reality however, no one actually does this. Gradually, almost without your noticing it, your outstanding balance creeps up to five or ten thousand dollars.

Aside from getting paid fast, a cash advance is a ‘fast in – fast out’ loan. In the case of Cash Doctors (the guys I recommend), it’s an ‘easy to understand’ fee structure that’s displayed up front. Then you use the cash, repay it and it’s all over. There’s no long term commitment that drags on for months or years. Unlike a lot of short term lenders, Cash Doctors is fully ethical, offering maximum loan terms of only 45 days and capping out fees even if you have run into repayment difficulties. They’re pretty different and a long way ahead of their competitors.

When expressed as an annual percentage rate (APR), traditional personal loan rates are significantly lower than cash advance rates. But there’s a key difference. When you take a personal loan you’re charged establishment fees, monthly administration fees and early repayments fees. Cash Doctors cash advances are much simpler. Essentially a cash advance is like getting a taxi. It’s more expensive, but it’s only for short journeys and it’s convenient and fast and right there when you need it.

If you need a few thousand, for a holiday away, a new laptop, a car etc., then take the Aussie Personal Loan.

But if you need just $100 – $600, and you need it urgently, you should really try the new school personal loans from Cash Doctors. That’s your best option best personal loan for you.