Are Cash Advance Loans Right For You

Are Cash Advance Loans Right For You?
Cash advance loans are small,​ unsecured personal loans for amounts ranging from $100 to​ $1,​500 .​
Generally,​ the​ company making a​ cash advance loan only requires proof of​ employment and/or income and a​ bank account as​ verification of​ your ability to​ repay the​ loan .​
The loans are short-term – most require repayment in​ full in​ one lump sum within two weeks .​
The repayment method varies .​
Most often,​ the​ cash advance company requires that you​ give them a​ post-dated check or​ agree to​ an​ EFT transfer for the​ amount of​ the​ loan plus their finance fee on​ a​ specified date.
According to​ several recent surveys of​ people who use cash advance loans,​ the​ typical user is​ young,​ educated and has a​ full-time job .​
The general reasons for applying for cash advance loans are to​ meet unexpected financial needs (a car that needs servicing,​ or​ medical expenses not covered by insurance,​ for example),​ or​ to​ take advantage of​ an​ opportunity that they can’t afford ‘this month’,​ but which won’t exist next month .​
Are cash advance loans the​ right choice for you?
For most people,​ cash advance loans are a​ convenient short-term financial management solution that can help them avoid bounced check fees,​ late payment charges,​ higher interest rates and bad credit ratings.
When you’re considering a​ cash advance loan,​ there are some important facts to​ keep in​ mind.
· Cash advance loans allow you​ to​ meet unexpected financial obligations without involving revolving debt and months of​ payments.
· Cash advance loans are not meant to​ be a​ way of​ regularly managing your budget .​
If you’re using cash advance loans to​ meet your monthly expenses every month,​ you​ should work with a​ credit counselor to​ help you​ manage your money and deal with your debts.
· Cash advance loans are meant to​ be used once in​ a​ while to​ get you​ through a​ financial crisis .​
If you​ use them repeatedly,​ you​ could be digging yourself deeper into debt.
Using Cash Advance Loans Responsibly
Cash advance loans can get you​ through sticky financial times .​
Just like any other kind of​ debt though,​ you​ can end up digging yourself deeper into debt if​ you​ rely on​ them to​ manage your budget regularly .​
Here are some guidelines for managing your credit and cash advance loans responsibly from a​ major provider of​ cash advance loans.
· Review your account status with your cash advance loans provider regularly so that you​ know exactly how much and how often you’re borrowing from them.
· Are there alternative sources of​ credit available to​ you​ for a​ particular need? For instance,​ does your bank offer overdraft protection for a​ small fee? If so,​ you​ can reduce your reliance on​ cash advance loans.
· Are you​ taking out a​ cash advance loan immediately after paying one off? Some payday loan providers impose limits on​ how many consecutive loans you​ can take out .​
If you​ find yourself unable to​ meet your regular expenses on​ an​ ongoing basis,​ cash advance loans may not be the​ right solution for you.
If you​ find yourself using cash advance loans on​ a​ regular basis just to​ get from one payday to​ the​ next when you​ haven’t had an​ unusual emergency financial situation,​ a​ credit counselor can help you​ straighten out your finances .​
If,​ on​ the​ other hand,​ you​ have a​ short-term pressing need for an​ advance on​ your paycheck,​ then cash advance loans are the​ way to​ go.

Related Posts:

Powered by Blogger.