Cash advances are fast money in a pinch, but they should not be used for just any reason. Because they need to be paid back within a few weeks, an online cash advance is not an answer to every problem. The need for these types of loans is growing as the economy clamps down on poor credit.
Truth About Credit Cards
The direct cash advance lenders are getting a bad rap for high interest and promoting a cycle of debt for their customers. What seems to be overlooked is the amount of debt credit cards have created for many more individuals. Because their interest rate is lower, the long-term effects are neglected. Financial hardship is taking over the nation as people struggle to keep up with everyday costs.
Credit cards have promoted the idea that it is okay to spend beyond one’s means. Spending traps are created with open balances and easy access to additional credit. A cash advance online can help make an on-time payment, but they will not solve the debt created by the credit cards.
Cash Advances Is Not the Solution Either
- You could close your credit card accounts. One phone call can cancel your ability to continue spending, but will not take care of the debt. This solution is one that should not be taken lightly as canceling credit can harm your credit score. The effect will be temporary. If you need to keep yourself from further debt, go ahead and close the account. A short-term set back is much better than keeping a long-term problem.
- Cut them up! Shred or take scissors to them. It doesn’t matter, just put them somewhere you cannot use them, and no one can figure out the numbers for fraudulent purposes. Keep yourself from charging more on the available balance so your monthly payments will start making a dent.
- Keep your cards at home. When they are not in your wallet, you will not be able to use them no matter how strong the urge to buy is. You may reconsider your purchase when you know cash is the only solution.
- Lock them up in a security box or tuck them away to someplace safely. Perhaps this will keep you from remembering you have them. When items are out of sight, they are often out of mind. Your desire to use them will be curbed.
Get Back on Track With Your Self-Control
- Shock yourself by examining your statements. Figure out how much you will be paying for the items you purchased. At the rate you are paying, how long will it take to pay off the balance? Figure in the interest rate for that amount of time and compare to the initial cost. When you have long-term payment options, are the items you are purchasing affordable?
- Reward yourself with a low cost or free treat for a job well done each week or month, which you do not spend on your credit cards. Allowing yourself to indulge in something for a job well done is a good incentive to control your finances.
- Some people can keep it all under control with something called “self-control.” Being able to tell yourself, “no” and still work your way through the mall is a great skill. The same discipline it takes to turn away from a second helping at the dinner table can be applied to your finances.
No Budgeting Plan?
By the use of ‘other people’s money,’ it’s hard to understand what you are really spending. Credit card or payday loan money finds a way for you to spend more than you make. It presents a false sense that you are living within your means. I remember talking to a cash advance customer and he didn’t really know how they would ever pay off the debt. He said that he was just paying the minimum and hoping he would get extra money one day and pay it off. That’s not a good financial plan. If you are only affording the minimum, soon enough you will drown financially. If this is you, it’s not too late. Make a plan or better yet, there are debt consolidation companies and financial planners that can help you. Don’t be afraid to ask, it’s vital to your financial future.
A Way Out of Cash Advances
Cash advance lenders and credit card companies would love for you to keep needing them. For real financial freedom, you will want to rely on yourself to make your money work in your favor. It can happen. Research to find the way out of the cycle of cash advances and credit cards.