It’s public knowledge that short-term cash advance loans carry use of service fees which will be included in the payoff. It makes sense, any type of third party cash will result in some sort of charge for service. A credit card does not charge a fee, but it will collect interest on any outstanding balance which is left unpaid. Extra revenue for credit cards is collected when a person spends over the limit, makes a late payment, skips a payment altogether, or ups the interest rate keeping a large balance an extended time.
Banks are well-known for checking fees; bounced checks, insufficient funds or monthly management costs. There are ways to avoid monthly management fees which are addressed at the time the checking account is set up. You may need to hold a minimum in your account at all times, use direct deposit or use online banking features. The other costs come with money management. In order to avoid fees attached to “negative” balances, you will need to make sure you always have money in the account.
A cash advance lender will charge, but why does the bank when it is your own money?
Savings accounts are a great thing to have. Put a budgeted amount in each month in order to have the budget padding when emergency costs pile up. It is an inexpensive way to plan for future expenses. It only stays inexpensive when there are no fees attached. When you open a savings account, the bank employee will go over account information. To avoid monthly management fees, a saving’s account will need to carry a minimum balance or have automatic deposits from another account or paycheck. Why the extra charge on the bank statement?
Did you know that it will cost you about $45 to use your savings account too often? You will not be charged for putting money into the account, but many banks now limit free withdrawals, either per month or quarterly. Most people are unaware of this cost. It briefly mentioned at sign up or was included in the notebook of paperwork which usually ends up at the bottom of some drawer or in the trash. Once you have used up your allotted free withdrawals the bank will begin charging per transaction until the new time period begins. If you do not know your bank’s policy and you use your savings often, you will want to know if you have limitations.
Keep cash advance costs to a minimum.
When it comes to finances, knowledge is power. Know financial solutions before problems arise. If you do not have a savings account, research a direct cash advance lender or online payday loan lender in order to keep from making hasty decisions during a financial crisis. Learn about bank restrictions regarding your bank accounts which could potentially cost you extra money. The hard part about bank fees is that the fee is automatically deducted from your account, there is no roll over or pay down option like a cash advance may have. Take care of your income properly by managing your money to protect your future finances.
