 Short-Term Cash Advances
Despite all the flair and flashy words that come before or after "cash
advance", few products openly describe the short-term nature
of the product. This article will fill you in on all the stuff many
cash advance marketers conveniently forget to mention when they describe
there product as well as some general facts everyone should know before
they consider purchasing a cash advance.
Cash Advances are not a Long-Term Solution
It's ironic that the one phrase that accurately describes the proper
use of a payday cash advance
loan is the one that is the least popular in terms of advertising.
The reason for this is the fact that many companies would prefer that
you not think of cash advances as anything
but the magic bullet that will save you from your financial woes. Though
many times an easy cash advance is just what the doctor ordered, the
truth is the entire cash advance
industry makes so much more money when you rely on short-term cash
advances for a long-term financing solution. The majority of people
surveyed indicated that they were both aware and understood the interest
rates and fees associated with using a cash advance as a source of financial
relief (source: CFSA 2003 Study),
but many fail to consider the long-term consequences that come from
frequent use of an in-person or online
cash advance.
Cash Advances & Financial Habits
Humans are creatures of habit, and nothing speaks more to this than
the development and constant reinforcement of financial habits. Though
the sources of any predisposition for being thrifty or otherwise are
often a subject of much debate, one thing most people can agree on is
the fact that as alternatives present themselves consumers will be likely
to utilize them. What sort of person wouldn't reach for a helping hand
if they were falling into a pit? Guaranteed
cash advances can be the helping hand that many people reach for
from time to time, but increased dependence on cash advances as a means
of making ends meat can quickly become a problem that spirals out of
control.
What Can I Do?
Making sound decisions is the best way to ensure that you remain financially
stable so any period of time, but learning how to make those decisions
can be a battle in and of itself. Self-help books such as "Rich
Dad, Poor Dad" have often been wildly popular among consumers by
claiming to know the secret to financial success, when really all they're
selling is the idea that any individual that wants to be financially
independent needs to learn how actively manage their own finances and,
in doing so, don't need to rely on products like an urgent
cash advance to supplement their income. Some great steps toward
making that dream a reality include:
- Making a budget and revisiting that budget often to see how you
measure up
- Adjusting your budget for anticipated (and even unanticipated) expenses
for increased accuracy
- Giving in less to immediate desires and impulse purchases
- Adopting a savings plan, even if it is something like 5% to 10%
set aside from each paycheck
- Developing a plan to get out of debt (this should include paying
off existing cash advances)
- Teaching your children the value of money and passing along these
useful tools
These suggestions are only the tip of the iceberg, but they should
be more than enough to get you started in the right direction. Financial
freedom can only be attained after careful planning and thoughtful execution,
so get started today - you'll be glad you did. |
