Sometimes money gets tight, especially when you have unexpected expenses come up that you weren’t anticipating. There are a lot of people who are just barely able to get by between paychecks, which means that any expenses that are out of the ordinary can quickly cause overdrafts with your bank account. Rather than stress about how you are going to be able to pay for these emergency expenses while still paying all the bills every month, consider the advantages of a cash advance.
Cash advance options are available from short-term lenders, who can offer you a loan to help make ends meet until your next paycheck. Here’s why they can be advantageous.
Avoid Credit Card Fees
If you are thinking about getting a cash advance from your credit cards, you might want to think again. With most credit cards, getting cash means you will be charged astronomically high interest rates (much higher than your annual interest rate for normal purchases), and might have additional costs and fees on top of that. Generally cash advance rates on cards are about double what you would normally pay, which means they can be in the neighborhood of 25% to 30% interest.
Avoid Bank Overdraft Fees
Banks don’t like it when your account reaches zero, but if you find that you have something unexpected happen you might not have enough money in the account to carry over until your next payday. Letting your bank account go below zero means you have to pay high overdraft fees as well as returned check or returned charge fees on things that you tried to pay, but didn’t have the funds to cover. This can quickly add up to hundreds, even thousands of dollars in fees, which makes it even harder to get back on your feet financially. Cash advances will provide you with the money you need to keep in your bank account and avoid overdrafts.
Avoid Late Fees on Bills
If you’re worried about bank overdraft fees or don’t want to pay the high rates to get cash through your credit card, you may have considered just not paying your bills when they are due and you are short on cash. The problem with that strategy is that you will probably face late fees and other charges from your landlord, power company, gas company, and loan service centers.
Instead of worrying about all the fees and costs that can add up when you need access to extra cash before payday, talk to Utah Money Center to find out how a cash advance can provide you with money right now, plus set payments to make sure you get it paid back in a timely manner.