Depending on your view of how to handle money, you may like or dislike the idea of getting a cash advance. Cash advances won’t put anyone in a bad situation financially as long as the person is educated about how they work. In fact, getting a cash advance could actually put people in a better financial situation. A good practice when getting a cash advance is to make sure you will be receiving enough money in your next paycheck to pay back the loan as quickly as possible. People get in trouble when they don’t pay back the loan right away and end up getting buried by the fees that they incur. Knowing that you will have the money to pay back the loan in full can put you at an advantage when requesting a cash advance.
Emergency Home Maintenance
One way getting a cash advance could be beneficial is if you have maintenance on your home that needs to be done, but you don’t have the money to pay for it up front. You have the option of either waiting until you do have the money, which could damage the home further, or get a cash advance and pay for it right away.
For example, if you have a slight water leak under your house, then waiting two weeks until your next paycheck to pay for the repairs could cause foundation problems or more, which leads to more money you will have to spend on repairs. If you get a cash advance right away, then the interest you have to pay on it would most likely be less than the additional repairs required if you waited.
Bounced Checks; Overdrawn Accounts
Another reason why a cash advance could be necessary is if you are in danger of having a check bounce. Banks can charge several fees for insufficient funds and the place that you wrote the check to could add on fees as well. Get a cash advance and you won’t have to worry about those fees. Obviously, if the overdraft fees or other fees are less than the interest fees of the cash advance, then you wouldn’t take that route. Those factors would have to be taken into consideration before any decision is made.
Avoid Utility Shut-off
If you don’t have enough money to pay the electricity bill one month, then a cash advance would be a good option. When you risk having your electricity turned off, you are not only sacrificing your quality of life, but you also have to think about food and drinks that could spoil in your refrigerator and freezer. You would be looking at a lot of money to replace everything, which could exceed the interest fees that you would pay by getting a cash advance.
Providing for Your Family
This last reason why you should get a cash advance is pretty obvious, but still important to think about. If you have a young child and are struggling financially, then getting a cash advance to pay for food and clothing for the child could be a better option than leaving them with a babysitter while you go to a second job. Unless you have family or friends that will babysit for free, then getting a cash advance would actually be cheaper than paying someone to watch your child while you make extra money.
Being smart when requesting a cash advance can be the difference between drowning financially and surviving. Many people use cash advances irresponsibly, which causes more debt and a more stressful life. Paying back the loan quickly and using a cash advance for life’s necessities will help you live a more stress-free life.