subject: Properly Handling Short-term Cash Advances [print this page] For people who find themselves faced with a difficult situation where they don't have enough money, one option open is to take out a cash advance. There are many situations in life that can cause financial hardship, such as one's vehicle breaking down, broken plumbing in a home or any other situation that requires extra money that one may not have. Cash advances are pay day loans, meaning one would borrow money promising to pay it back on their next pay day. Some may find it difficult trying to be responsible with them, so here is a guide on how one remains responsible.
To begin with, one should be sure they're going to be able to pay back their pay day loan. While these types of loans do not require a credit check and only have a few requirements, one would want to be somewhat financially stable. The borrower will have to provide their work information, including the employer's phone number, address and information on how long they've been employed with that company. The borrower may also need to provide a pay stub to show they are currently getting paychecks.
One will want to take a look at how much they are getting paid and determine how much they are able to borrow. The borrower should never borrow more than they can pay back, so it is essential that everything be taken into consideration.
Next, the borrower should look at the interest rate to be paid back. One would expect that pay day loans are going to have higher interest rates than regular loan. It may not sound like very much money, but it may save matter over time if they find themselves in situations where they have to get more than one pay day loan at a time.
Last, but not least, a borrower should be extremely careful to not fall into the trap some do with pay day loans. Some people make the mistake of borrowing too much money against their paycheck or borrowing too often. They soon find themselves getting more and more and before they know it they are relying on them. Pay day loans are meant just for unexpected emergency situations. As long as one is responsible with them and does the proper research, pay day loans can be one way to get out of a bad financial situation without falling behind on payments or affecting one's credit score.
by: Christine Harrell
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