A cash reserve is a type of loan that you can take out when you are a few euros short and where you only pay costs on the borrowed amount. Often these costs are quite high. The available amount can be linked to a credit card or be a separate sum. There are numerous lenders who have a cash reserve included in their portfolio. Depending on your income and financial situation, the amount of the cash reserve can vary between US $ 500 and US $ 5,500. If you request an initial cash reserve of 500 US dollars, it can be increased if your income changes.
The principle of the money reserve
With a cash reserve, a pre-negotiated amount is made available for you to withdraw. You can choose not to include anything at all, in which case you will not pay any interest. You repay part every month according to the amount withdrawn. This repayment includes part costs and part return of the capital. As a result, the reserve grows again and the amount you can withdraw is greater again. Depending on the amount, a period is also determined within which the reserve must be fully Demorei again. For example, if this is once every two years, this means that you must have paid everything within 24 months, but you can withdraw money from the reserve the next day. This rule was created to protect consumers.
Why should you choose a cash reserve?
A cash reserve is especially advisable if you are looking for financial peace of mind. You want to be sure that unexpected bills can immediately become Demorei and that you do not suddenly end up in a difficult position. Because you only pay costs when you actually withdraw money, the loan is in principle free if you do not use it. However, if you are looking for a sum of money that you want to use immediately, this loan is an expensive option and it may be better to first check whether a personal loan is not more interesting. Request quotes here to find the best solution.