Tax season has hit us again and with it comes the need to get your money as fast as possible.  Many of the tax preparation companies urge their consumers to get their cash instantly using a Refund Anticipation Loan, also known as a RAL.

Consumers should be warned to consider the complete costs of a RAL and that these loans can actually wipe out a significant portion of your overall return.  Beyond exorbitantly high interest rates these loans come with a large number of hidden administration fees, so the consumer will be actually paying someone else to have access to their own money.  Also if the refund is less than anticipated or the RAL is not paid off in time, more fees kick in and potential can take the entirety of the loan amount.

If you need the money quickly, an alternative is taking out a payday loan.  These loans generally come with set costs based on the ammount borrowed and no or limited administartion fees.  You will still have accesss to cash deposited directly into your account, and the anticipation of a refund check, without the plauge of excessive administration fees.  Be sure the read any payday you sign up for carefully, to be sure you are aware of all the fees they might have.