The question is can a cash advance can bring you financial security? That really depends on what you mean by financial security. If you are talking about a couple weeks of financial security, then yes. But if you are talking long term, definitely not. You can not assume that an advance on a future paycheck will bring you to that financial paradise you may imagine because you are out one less paycheck for this month. A cash advance must be used for urgent circumstances only and not for monthly financial planning.
You may see many cash advance companies advertise “cash advance up to $1500 with no credit bureau check”, if this sounds too good to be true, it is! Think about it, if you are making a lousy four hundred dollars a week how could you afford a $1500 paycheck advance? It doesn’t take a mathematician to figure out you’ll be in over your head in no time. You’re thinking to yourself, “no crazy company is going to offer me $1500 on a four hundred dollar a week income.” You’re wrong. They will! It is called predatory lending and it is common practice in the short term lending industry. Any company that offers you more loan than you can afford to pay back in one week without putting yourself in a worse position is a predatory lender. That can lead to extensions of repayment or even the inevitable problem of getting another payday loan to pay off the current one. This process of stock piling or rolling over loans can cost you hundreds more than you ever imagined and bury you deeper in debt every week.
Give yourself the recognition you deserve you’re a person with a good head on their shoulders that can take your finances by the horns and tame them. The first step to take when thinking about a cash advance is to re-budget your finances and cut whatever you can when you can. The second step would be to determine how much money you can borrow and easily pay back. This means only borrow a small amount of your next check leaving a cushion for daily expenses. The final responsible step would be to find a trustworthy lender offering cash advances at the competitive rate possible so that you get the most out of your cash advance.
Short term loans are just that, a short term solution to a bad situation. If you think an advance in your pay will bring you financial security, think again. There are laternative methods to finding that long term financial security you are looking for. Start with your budget and try to catch up as much as possible without leaving yourself in a worse position. If you find the need to obtain a cash advance and learn how to use it responsibly, it can be a very positive experience.
