02 Oct Get Money, Don’t Let It Get You
Cash advances are easy to obtain. These days, all you need is a computer or your mobile device to get a payday loan. Thousands of payday loans are taken out each day and it’s because people will always have a need to be paid before their actual pay date. Often, people run into the problem of having a bill due two or three days before getting paid. The consequences are high for missed payments. For example, credit bureaus are notified and your account usually incurs a late fee if not cancellation. It’s safe to say that a payday loan can save your life when faced with a pressing financial situation. That being said, the very opposite is also true.
A short-term loan can ruin you. If you don’t repay your pay day loan on-time or at all, the interest rate accumulates at rapid speeds. This means a small $500 loan can end up costing you thousands if you find yourself unable to repay it. Also, if you get in the habit or taking out these kinds of loans, you can find yourself somewhat trapped in a repetitive lending cycle. The trick is to only use payday lenders when the need arises. Needing a new golf or handbag doesn’t exactly constitute ‘need’. If you use a pay day loan appropriately, you will find that the stigma attached to it comes from the people who have not repaid their loans according to their contracts. Like anything in life; follow the rules and it’s not so bad.
When you think you need a cash advance, ask yourself the following questions:
Can I borrow from a friend or relative instead?
What do I lose if I wait for my pay check? Is it worth it?
Can I afford to repay a pay day loan given my current financial situation?
Can I get an extension on whatever it is I need to pay for?
If you find yourself with alternatives to a pay day loan you should avoid getting one. Asking someone you know to borrow a couple hundred dollars to save you from financial ruin isn’t going to kill you. Or, if you can, get an advance from your employer directly; this will save you money. Obviously, not everyone has these options and it’s in this case that a pay day advance loan is recommended.