Cash Advance ArticlesCash Advance on a Fixed IncomeTip! Many of the loan companies cannot loan less than $1000, but cash advance companies may see your $1000 loan as a large loan and add on a large interest rate as well. Not long ago I was talking with a friend and our conversation drifted to personal finance. He is of the opinion that there is a fine line - or eight week window for many people whereby if they are unexpectedly without income their financial framework collapses. Although I had not thought of it in those particular terms I knew from personal experience just how possible that would be - particularly if there is no savings to fall back on. We all find ourselves at one time or another wondering how this could have happened to us. Simply put - at times we all lose sight of the importance of following our financial game plan. There are as many reasons for stumbling as there are people and we are each unique in the fact that we have our own set of expectations and our own action/reaction to circumstances. A friend of mine supplements her social security income with two part-time jobs. As a single parent she has tried very hard to create a workable budget. In the space of a few weeks her careful planning fell apart. This is what happened. • Car repair cost $250 for radiator. • One job cut back her hours by 3/4. • Second job had seasonal issues which cut her hours by 3/4. When the car needed repair she paid the $250 bill using the money budgeted for groceries, figuring she would make it up with income from her part-time work. Tip! Many people see a cash advance loan as their last resort because they have no other options for getting a loan. At about the same time both jobs for one reason or another resulted in an $800 decrease in her part-time income. My friend had counted on the $800 every month to pay credit card debt and utilities. So what we have here is no grocery money (went to radiator repair), no credit card payment money, and no money to pay the utilities this month. In the end it took her almost six months to recover from three unexpected events. It could have been less painful with a savings account. Usually the financial experts and credit counselors recommend saving at least two months equivalent to begin with and follow that with saving 20% of your gross income every month. If my friend had her $1,600 cushion in the bank (or under her mattress) a portion of the savings could have been used to compensate for the shortfall. If she had spent $1,000 of her savings to pay for credit card debt, utilities and car repair - she would have saved late and over limit fees, utility cut-off and struggling to put food on the table for her family. In lieu of a savings account to bail her out of this jam - she could have applied for a cash advance. Tip! Getting a cash advance from most companies is very easy and you can borrow with just your valid ID and pay stubs, however, some companies need more information. That is why it is important to call the cash advance company in advance to see what is required. What can you do if you find yourself over a barrel and approaching the falls? When this happens to most of us it's a matter of needing the funds yesterday - or last week - not next month. Here are some of the most obvious sources for a short-term influx of cash. They are listed in no particular order as each of your situations will differ as do the possible temporary solutions. • Ask family and friends. While your family members and friends may be experiencing their own problems they may be able to come up with $50 each. Added together that may help you through the immediate future. It's easier to ask somebody you love to part with $50 than $300. • Part-time or seasonal work. Consider working at the Mall during the holiday season or typing during your off-hours for a local attorney. What about the seasonal stores (Christmas, Halloween, etc.), small motels or dollar store? You don't have to commit to every day or night or even each weekend. The extra money will really help you out of a pinch. • Personal loan. This might be a bit more difficult to obtain especially if your family has been struggling and your credit is somewhat tarnished. Swallow your pride and ask where you bank. You aren't the only person to have these things happen and the bank may have a product that would ease the pain of recovery. Tip! Many loan companies allow their customers to borrow around $1000 if you pay it back according to their payment schedule. You need to know, however, that you will end up repaying the cash advance company a lot more than you borrowed because of the high interest that is added to the cash advance. • Payday Advance: There are tons of companies out there that are ready to loan you as much as $1,500 overnight. This might be your best option but, keep in mind the finance charges can be high if you stretch the loan over time. For a short-term quick fix this is an attractive option, especially if you will have the funds to repay within 30 days. I have personally experienced each of the methods listed to obtain cash - the quickest and least embarassing by far, was completing the simple application for a payday loan. One of the best habits you can develop when you are young is to save part of every paycheck or allowance. Have a simple savings account and make deposits to it regularly. There is almost nothing that will give you such peace of mind as knowing there is a cushion to fall back on when the unexpected occur.
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