Point of view is important to what should matter the most to an individual. How would a cash advance lender suggest I take care of debt compare to those from a debt settlement company? Suggestion need to be taken with a grain of salt and applied as you see fit into your own personal finances.
A cash advance company isn’t promising debt relief.
If you come across a cash advance lender which is promising to be a step towards debt relief, you might just want to keep on stepping away. Cash advances are typically small loans to support financial emergencies in between pay periods. When paid off on the original date, these loans are a cost effective approach to bank charges, late fees and possible loss of points on credit scores. Short-term loans make economic sense to help prevent larger problems, but are no means a solution them.
Debt settlement companies on the other hand are considered solutions to large piles of debt. These companies will not work to settle small amounts of debt and rarely will you find one which will work to settle with a cash advance lender. The debt settlement company may offer alternative ways to solve debt problems, but ultimately, they would like to sell their own service.
Service promotion is good a way to create more business. Marketing programs create advertisements which will grab a listener’s attention and suggest they follow through with a phone call. A phone call never hurts, right? As long as you are not in a vulnerable persuasive position and are talking to a non-predatory lender, phone calls don’t hurt a bit. For the predatory company looking to promote business, vulnerable people are fabulous people to get on the phone. They are easily persuaded and are in a hurry to fix their money problem.
Most money problems are too much for a cash advance to fix.
If you find that a cash advance lender is offering you more money than what is needed, you want to walk away. Taking more than you need will only bring in more revenue for the company and land you with a larger amount to pay back in a few short weeks. Don’t ever apply for a loan for more than the emergency cost no matter what the lender says. It is not a smart financial decision. A debt settlement company will never suggest this, but they will make suggestions to which are not good financial options to steer you into using their own service. For example, a debt settlement company may suggest that taking out a second mortgage on your home may help you consolidate your loans and therefore clear your debt. Who wants to take unsecured debt and change it to secured? Not the best idea, especially for those who have large outstanding debts. The settlement company will convince you that it is an option, but then make you think about the possibility of losing your home. Of course debt settlement sounds like a better program to solve financial matters.
There are options for small or large money problems. The best solutions you can create for yourself is to understand what they all are before you run into problems. Know where the best places for small cash advances may come from. You may find that you don’t even need a lender to provide it when you have a family member or better yet a side job to support it. You may also find a free credit counseling service which will give you honest advice on real solutions when debt has overtaken your financial life. Prepare ahead of time and leave your vulnerabilities or anxiousness out of the financial equation.
