With a fair amount of debt to my name, bills and everyday expenses, I know just how stressful it can be to make paychecks last without pursuing options like cash advances. On paper, it seems as though your paycheck should give you just enough to get through each month but the reality of the matter can be a stark difference to what's actually in your bank account.
People everywhere are struggling to get through the month and most wish they had just a little bit of extra money to help get them back on track. Such help can come in the form of cash advances. Also known as payday loans, paycheck advances and cash loans, these nifty lifesavers can make the difference between a stressful month and a productive one.
The time between paychecks can seem like an eternity when you're trying to stay current on bills. If a sudden emergency arises - as we all know they do - you need funds and you need them fast. But when your next paycheck is still a week away, that's when you can really benefit from cash advances.
What's the Deal?
A cash advance is a loan. More specifically, it's a small, short-term loan that goes directly into your bank account without any interference from banks. The idea behind this kind of loan is to give people a quick and easy route to money they would normally receive from their paycheck. This is why cash advances are small; they are meant to be an earlier than expected amount of income so you can use the available funds as needed. Whether it's for bills, utilities, a personal emergency or even an impromptu vacation, your cash loan is yours to spend.
Just as easy and hassle-free as it was to get your loan, it's just as easy to pay it back. As it is a short-term loan, your due date is generally within 2 weeks or at the date of your subsequent pay day. While the higher-than-normal interest rate may initially startle borrowers, keep in mind that the loan is only for a few weeks; therefore, the interest amount is relatively small.
On the due date, cash advance lenders will cash a check which you endorsed to them at the signing of your loan. It is made out to the lender for the specified loan amount plus the agreed upon interest. By repaying the loan in this manner, you don't have to worry about sending a check or meeting with the lender making the experience that much more stress-free.
When to Turn to Cash Advances
Simple. When you need money and you feel as though you've exhausted other options. This is not the kind of financial option that should be taken lightly. Small or not, it is still a loan and there are severe consequences for not paying it back.
However, for those who truly are in a financial bind and need money fast, cash advances are an option that should most definitely be considered.