Should You Really Use a Cash Advance?

If you are in a rut, chances are you might be considering a payday loan especially for people who have bad credit. These loans come with a number of high risk aspects such as extremely high interest rates and short repayment terms. Typically, you’ll need to pay back the loan with your next check, but this can leave you falling into a vicious cycle since you are probably going to be in a rut the following week.

If you happen to find yourself in a bad spot, and getting a cash advance on your paycheck seems to be the only option, consider looking at how you got yourself in such as tight spot. This includes looking at your spending habits and trying to determine ways to cut back on your spending. A good rule to follow is to ensure you always have an emergency fund account with at least $1,000 in it at all times.


For some people, keeping up to date with bills can be hard and this has led many to turn to these high interest loans. If you are running late on your credit cards, you may see late fees that get to be as high as $30! Some people will also use these loans to help avoid bounced check fees.

You should keep in mind why you are applying for one of these loans. This can help you stay out of getting into debt even more. If it’s something that can wait until your next payday, you may want to consider waiting.

If you’re wondering if you should apply for this type of loan, consider the following reasons as to why people apply for them:

•    Emergency doctor visit
•    Avoiding bounced checks and credit card late fees
•    Late utility bills
•    Urgent car repair
•    Childcare needs
•    Paying monthly expenses

If your situation is not that much of an emergency, maybe consider asking friends or family to borrow money and work on paying them back. This will help avoid the fees that come with payday loans which can be as high as 300%!