subject: A Reality Of Life: Money Will Always Be Insufficient [print this page] Reality tells us that money will always be insufficient. There are times when there are lots of cash in our pockets but they fail to satisfy both our needs and wants. Worse, situations wherein we badly need money such as emergencies arise from time to time, catching us completely unprepared.
To temporarily fill in budgetary gaps, the common option is to borrow money. Usually, the first thing one does is ask family and friends if they have extra money. Unfortunately, what often happens in this case is either they lend a small amount of money or they dont because they too are experiencing financial difficulties.
When family, friends and even employers cannot be of help, the next recourse is to apply for a loan. Banks can guarantee relatively large sums of money for loans, but unlike family, friends and employers, they are very strict when it comes to requirements. It will take a significant amount of time before your loan application gets approved by the bank, with them also charging deductions for fees and others.
If banks would not be of much help to you, then your next best option is to take out a cash advance. Cash advances are short-term loans that involve small sums of money that can pay for your expenses until your next payday. Just like typical loans, creditors extending cash advances will charge borrowers a certain amount of interest plus other fees.
However, there are huge risks involved in applying for a cash advance. Creditors tend to charge borrowers exorbitant interest rates because this is their way of securing an unsecured loan like a cash advance. Such practice caused some states to either ban cash advances or impose very strict regulations.
A cash advance is definitely convenient for people who are temporarily short in cash. However, just like what creditors keep on saying, there is no better way for you to have money when needed than by keeping a portion of your income as savings. At least, when a sudden need for money arises, you have something that you can pull out of your pockets.
by: Sofia Britts
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