Cash Advance Network

Cash Advance Network is an online cash advance or payday loan site that guarantees loans up to $1000 within approximately 24 hours. Their online application is simple enough, although there are quite a few catches involved.

1. The APR that Cash Advance Network charges for a 14-day loan is 782.14%, almost the double of the 390 or 400% that is typical of most other payday loan companies. This basically translates into a $30 charge on every $100 borrowed, which is the double the usual $15 fee.
2. You are supposed to contact them for repayment of the loan three business days before your due date.
3. Their Auto Renewal Payment Program ensures that if you do not contact them within this period, they will automatically debit the finance fee from your account on the due date.
4. The automatic renewal and fee deduction will be done four times. The fifth time they will debit another $50 of the principal payment from your account.

Cash advance loans are banned in 15 U.S. states including Georgia, New Jersey, and Ohio. Such loans have often been referred to as “quicksand” since they target low-income level groups who are unable to repay the loan, which can transform into huge numbers with the interest rate and other financial fees involved. A kind of predatory lending, there are uncountable stories about simple cash advances becoming huge debts for people, not to mention reports of uncomfortable, threatening calls from the company about missed payments.

Cash advances are also known as payday loans, payday advances, instant cash loans, paycheck loans, and payroll advances. They are loans you can take against your next paycheck. A debt consolidation tactic on a smaller scale, cash advances act as short-term loans usually up to $1000 to be paid back within two weeks or so. Cash advance networks or payday loan companies charge a high interest rate with a huge difference between the annual percentage rate (APR) and the effective annual rate (EAR). While the advertised APR might seem low because it is a short-term rate, the EAR often ends up in four-digit numbers.

Payday loans are usually not available for self-employed people. All U.S. states (and several other countries) have usury laws about how much EAR (and therefore APR) cash advance companies can charge. Make sure you find out about yours before signing up for one. These companies are known to ignore legal restrictions in general. 90% of their revenue comes from borrowers who roll over their loans at least once. Surveys show that there are around 22,000 payday loan outlets in the United States, which is more than all McDonald’s and Burger King outlets combined!

In case you plan to opt for one of these loans, beware. It pushes you into a debt cycle, which is difficult to break with all the high interest rates and the short time period. If you are going to use any type of cash advance network, make sure that you have a reliable income source that can supply you with the necessary funds to pay off the loan within the next month. Otherwise you could wind up being trapped by rollover payments that are too much to repay within the proscribed time when you factor in your normal living expenses.

If you find that the interest rate is too high or you need to borrow the money for more than just the next month, you might try your local loan shark and see if he or she can give you a better rate. In spite of their reputation for being “predatory”, sometimes such people are actually more reasonable and will take less of a bite out of your paycheck than the lenders who might appear more legitimate on the surface.

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2 Responses to Cash Advance Network

  1. james says:

    please help me. i need $4000 for my car, phone and water supply bill.

  2. tracey walker says:

    im on benefits with bad credit history i urgently need a loan ive been charged 50 pound and not recieved a penny and i dont want to pay anymore i dont really want a payday loan please help im desperate

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