Getting caught up in a cash advance or payday loan cycle of debt will wreak havoc on anyone’s finances. It happens to those who live paycheck to paycheck as well as those who have extra each month. No matter the size of the paycheck, if a person does not live within their means or happens to experience an influx of emergency payments there is bound to be a financial crisis at one point or another.
A savings account will help to defeat the need for a cash advance online.
Without a savings account to prevent the growth of extra debt, there is little else to do but to apply for new short-term loans and either max out current credit lines or apply for new ones.
A balance transfer is a great way to get rid of cash advance debt for those who qualify. Use a current card or sign up for a new offer. New lines of credit will give you an extended period of time without interest in order to encourage you to make the transfer. They are great options if your credit score falls within their qualification guidelines. Once you are approved, you may have from 6-18 months of no interest in order to pay down the transferred debt.
Read the terms and conditions of the special offer carefully.
- Know exactly how long your account will remain interest free
- What happens if you miss a payment?
- Will interest begin for missing a payment?
- What will be the interest on your account after your no interest time frame has expired?
Don’t make purchases with the dedicated card, it is for credit card and cash advance balance transfers only.
Calculate your monthly payments towards this debt carefully. You will want to take advantage of the no interest and pay down as much debt as possible. Depending on how high your transfer balance is, you may be saving hundreds of dollars each month on interest alone. Not everyone will have this option, and if you are turned down for one of these special offers, the last thing you want to do is to continue applying for others. Remember, each time a creditor looks into your credit history; your score will be knocked down a few points. Don’t ruin your credit trying to save your credit.
Holding onto a cash advance loan for an extended period of time will only hurt your budget. Not paying the loan and letting it fall into the hands of debt collectors will hurt your credit. Get the debt transferred or figure out a new way to pay it off.
One of the hardest battles in the fight against personal debt is sticking to the plan. Expect highs and lows in your battle against your debt. Unexpected costs are around the bend, so keep them in mind while you make your plan. If you absolutely need to borrow money, do it wisely. Don’t make irrational decisions out of pressure or emotion. Your future finances depend on how you currently handle your money.
