While a quick cash advance loan can really be a savior in times where you quickly need money to cover sudden and unexpected financial problems in your life, it can also get you in trouble if you do not use it wisely. To prevent you from falling into pitfalls by using cash advance loans, we have outlined some important tips below to help you get the most out of it.
Do you really need a fast cash advance loan?
A quick cash loan is also called a payday loans. Ask yourself, have I looked at other loans or loan facilities for my financial needs because a quick cash advance loan should never be your first option but always your last resort. There are a number of reasons why we make this statement, but first you need to access your financial situation to see if you can get the money elsewhere before contacting a payday lender. The interest rates on a fast cash advance loan can be quite high, which means that this is what I call "expensive money" as it costs you a lot more to borrow that money.
Some ideas might be to go through your mail to see if the check for the receivables you were expecting has arrived, or see if you can auction or sell something you no longer use on eBay or gumtree. Submit your items online and cut the price, someone will love to collect a quote right away or have a garage sale, in other words do everything you can to raise cash. Another thing you can look at is, do you have a line of credit secured against your house? If you pull down the equity in your line of credit, then this loan, because it is secured against your property, attracts a lower interest rate. Make every effort to get the money before you opt for a quick cash advance or a payday loan.
OK, so you have decided to use the option of last resort and have decided that you need a quick cash advance loan. Go ahead, but do so with caution by first reading it in small print and making sure you understand as much as possible about the lender's terms and conditions before signing up. Be wary of the ugly surprises or catches if you borrow money from these shady companies. Some could charge a really hefty interest rate, many times what you borrow if you do not pay on time. Beware of these shark lenders who benefit from unsuspecting customers, so read the contract and make sure you fully understand the terms and conditions.
Pay off the cash advance loan right away. Remember that a payday or cash advance loan was never designed as a long-term loan and should not be treated as one. As mentioned earlier, these loans charge higher interest rates so it would be wise to pay the full balance when the bill is due. Otherwise, you may find that you have to pay a significant amount in late fees and surcharges. In worse cases, you may need to take out another cash loan just to pay off your first loan.
Finally, you need to learn to manage your financial affairs and not rely on quick cash advances every month to get you past, otherwise you may fall into a debt spiral. Live within your means by lowering your spending and trying to save more money each month. A good little rule would be to pay yourself first, as soon as you receive your payslip, put approx. 10 - 15% aside and leave it in your bank account for quick and easy access. Make it a habit to save money like this and you may never need another quick cash advance loan again. Your savings can become your emergency fund when unexpected bills arise.
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