How much thought have you put into your application for an online cash advance? Did you think about your credit score repercussions when you opened up the new charge card at your favorite store? Impulsive decisions can hurt your finances more than help. Finances take planning and any decisions affecting your budget will need some careful thought. As easy and convenient an online cash advance may be, the payoff will need to be considered to keep from falling into financial quicksand.
When you don’t consider how payments will affect your monthly income, you may be making some poor decisions based on convenience. The loans are convenient. Credit cards are easy to use. Not everyone’s income provides opportunities for reckless financial decisions.
Cash advances will have an average term of two weeks.
Consider these five reasons when you are looking to apply for credit:
- Have you made a budget? Do you know what you pay for each month? How much is payment is, what it is for and when the payments are due? These are all crucial pieces of information to think about before you add more expenses to the pot.
- Are you living paycheck to paycheck? Do you find yourself holding off on bills or buying groceries waiting for your next paycheck? Does this happen often or is a rare occasion? If you find yourself doing this more often, then you are living paycheck to paycheck and adding one more monthly payment to the mix will only make the struggle that much tougher.
- How do you manage your money right now? Is your rent paid on time? Do you pay overdraft fees because you lost track of how much is truly in your account? Late fees and overdraft fees are definitely a waste of money. You are being punished for your errors. Use a low cost cash advance to keep your payment schedule on time. The money for this fee is more cost effective than the others and your credit will not be negatively reported from using it.
- Is your income stable to support regular payments? Some people have fluctuating hours or get paid by commission. Is there an average monthly amount that you can count on in order to sustain long-term payments? Do you have a savings account to help cover the costs on those months that bring in less money? You would need to create a budget based on the lower income range in order to set and prioritize payments based on that amount.
- How do you manage your spending? If you are an impulsive shopper, you may not want to be applying for many credit cards which will give you more opportunity to purchase wants. Opening yourself up for potential financial failure is not necessarily the best choice. It is always good to have a credit card for emergencies and to build your credit, but if you have no control to keep the balance at a minimum then don’t subject yourself to them. Cash advances are limited to either state regulations or fraction of your income. The fee charged to obtain them is not friendly towards overuse. They are a big help for emergency costs and will keep you from overspending more than you need or afford.
Keep online cash advance in mind to help with emergencies, but know that your payment will be expected in just a few short weeks. The more honest you look at your income and expenses, the better situation you can make for your finances.
