How much are you paying in interest for your cash advance? Your original due date has passed and as you continue to pay your fees and pay down your principle amount, have you calculated how much income goes towards the loan? Did you plan on having the loan extended beyond the first term?
Have a fast payoff plan before you get your cash advance.
I’m sure there are very few who know about the high interest attached to cash advances would plan to keep this loan out for longer than necessary. Short terms and high interest will quickly increase the amount spent. For those who are more comfortable with long-term options, credit cards would be a more cost effective, yet still pricey, avenue to take.
When is the last time you gathered all your monthly statements and added up the total monthly interest charges? Don’t include the essential home or car loan charge. Take a look at the other debt. You may find yourself gasping for air when you see exactly how much of income is being sucked away by interest charges. This amount should be your main target. Get that amount lowered and if possible abolished. The more income you have to save or use for current financial crunches, the better off you will be in the long run. Think about what you can do with that extra money each month.
- Could you pay down the debt?
- Could you increase your savings?
- Start a retirement account?
- Save for a child’s higher education costs?
- Plan a dream vacations which would be paid in cash prior to the start?
- Build up a down payment on a home?
- Pay off your car loan?
- Get new furniture
- Get the kitchen makeover you had always dreamed about
The list can go on and on. Think about keeping hundreds of dollars each month, of your hard earned money, and then think what else you could have instead of paying the creditors and cash advance lenders interest. Wow!
It is always harder to catch up than it is to plan ahead. Unfortunately, if you are already behind, you will need to do some fast moving to not only keep from getting further in debt but also to avoid spending more needless money towards interest payments. If you have both cash advance and credit card debt, choose to get rid of the short-term loan first. Once short-term loans have been paid, attack the creditors. Choose your direction: pay off high interest debt, pay off high balance debt, or go for the quick result and pay off the smallest debt first. Whichever fits your budget or creates the best motivation for your particular financial situation, go for it head on and don’t stop.
As you pay off debt and get to keep more of your income, you can use that extra to payoff more debt faster or begin placing it into a savings account to be used to safeguard future financial crunches. The more you have to relive yourself when expenses pile up, the smaller chance of getting back into debt.
