The lack of interest in cutting costs is fueling the drive to online cash advances and payday loans. When asked what would happen if cash advances and payday loans were not available, many customers would end up going through their spending habits and find ways to cut expenses.
What situations steer customers to online cash advances?
- Loss of job
- Hours cut back
- Children’s activities
- Medical costs
- Budget errors
- Debt pile-up
- Money mismanagement
There are numerous situations which lead to lack of cash, leaving an individual eagerly waiting for the next paycheck. Some individuals will use a savings or have a family member to help out in a pinch. Unfortunately more people do not have either of these options for emergency funds. Those with poor credit scores will have limited financial institution options. Banks and credit unions will not loan money to people with a poor credit history. There may be an option given if a co-signer gets involved. This leaves many people looking towards other financial companies for solutions. Online cash advances or payday loans, brick and mortar stores, pawn shops and car title loans are additional businesses to obtain money when quick cash is needed.
A strategy needs to be put in place to keep people from needing to go to these types of places for small money emergencies. Banks and credit unions are a great place to create checking and savings accounts. They are also quite useful when trying to purchase a new home, car or to cover start-up costs for a new business. Small cash needs would ideally be covered by a small percentage of a savings account. Most financiers would suggest that clients have at least six months of expenses in their savings accounts. That is a mountain to climb for those people who live paycheck to paycheck.
Create a savings account to keep the need for a cash advance at its minimal.
No matter how much you don’t want to cut back, it is the easiest way to obtain extra cash. Save five to ten dollars a week (In some people’s cases more!) from omitting fast food or coffee stops during the week. Bring your own lunch to work and pack the kids’ school lunches to cut back even further. Attack the grocery bill by pre-planning meals and writing out a list. Eat before you shop and stick to the listed ingredients. Shop competitive sales by purchasing nonperishable sale items in bulk.
Focus your debt payments to put excess on one creditor at a time. When you choose the smallest debt to payoff first, there will be a faster success rate and then that money can be applied to the creditor with the next competitive balance.
Organizing your payments into a budget with prioritized categories will give an individual better insight as to where their money goes. Being self-sufficient is an effective way to promote future financial success. Once debt has been whittled away, you can focus on planning for retirement, college savings and eventually paying off your home.
Cash advances are a good means to get by to the next paycheck by getting fast money into your bank account. They do not work for every person in need of money. The low cost cash advance online is supported by a fast payoff. If you know you will not have the money to pay the loan off quickly, then this may not be the best option available to you.
