subject: Consumers Seek New Cash Sources as Refund Anticipation Loans Dry Up [print this page] Consumers Seek New Cash Sources as Refund Anticipation Loans Dry Up
In the ancient world as well as our own, the concept of the well has been considered in art, literature, and even song. Towns would spring up around a water source, since the heat of the day often prevented the townspeople from transporting water all the way from the river to meet their needs. Sometimes these wells would run dry. At that point, a new well had to be dug or a new water source found, or the town could not prosper.
In free market economics, we see the same principle at work. The economic concept of voluntary exchange means that in order for a product to exist in a truly free market, it must have a perceived benefit both for the producer and consumer. This means that even if a product becomes unavailable, as long as there is demand, a substitute with the same or better benefits to the consumer will likely be produced.
In the past, many taxpayers in the U.S. have come to depend on Refund Anticipation Loans. These loans are secured by the estimated refund, and the loans were most often marketed by the tax preparer and supplied by a bank that worked in conjunction with the company. Changes in the credit market, as well as changes to IRS policy, have altered the RAL market, making the loans less available. More people are being denied these loans as this particular market appears to be drying up.
An alternative source for those seeking to access the cash in their tax refunds is a cash advance, also known as a payday advance or a payday loan. These loans are great alternatives to RALs since they provide the same quick access to cash, an easier route to approval (in many cases), and the additional benefit of being able to complete the entire loan process --from submission to repayment-- from the comfort and privacy of your own home.
If you've been told that you'll simply have to wait for your tax refund to come in (a process that can take between 10 days and 6 weeks!) you don't have the whole story. A short-term cash loan can be a way for you to get the cash you need in your pocket as soon as tomorrow.
Managing your cash in a short term loan agreement is easy. First, if you are approved for the loan, the funds you need can be delivered to your account in as little as 24 hours. You can spend the cash the way you see fit- there are no restrictions on how you spend the money, although a loan should always be considered carefully since there is interest involved. Lastly, the loan and the associated fees and interest are easy to pay back. The money you owe is simply deducted from your bank account by the lender at the agreed upon time based on your previous authorization.
Don't let the low approval rates of one type of loan stop you from pursuing the cash you need to meet your financial obligations. Consider a payday advance loan.
