If you just found out that you need to pay your mechanic all the money you currently have in your bank account, you might panic if you have to wait another week until your next payday. In this situation, you could try to live without any money for the week, or you could consider taking a cash advance. A cash advance offers a way to get money now, and here are three tips to help you do this responsibly.
Take Only the Amount You Really Need
Taking a cash advance is a great way to get cash so you can get by until your next payday, but these loans do require fees, and the fees are often based on the amount you borrow. Because of this, you can save a little money on the fees by only borrowing the amount of money you really need to get by for the week instead of borrowing the full amount the lender will offer you.
For example, if the cash advance lender will offer you $500 until your next payday but you think you can get by with only $300, then only borrow the $300. This will save you a little bit of money on fees from the loan.
Pay Back the Full Amount When It Is Due
The second way to use a cash advance wisely is to repay the full amount when it is due. If it is due on your next payday, make sure you pay the full amount from your paycheck. If this leaves you with very little money, you could consider taking out another cash advance loan. You may have to do this for several weeks in a row in order to fully pay it back, but this would be better than rolling over the original loan multiple times. If you have to take another loan when you repay the first loan, try to borrow less money than you borrowed the first time. For example, if you borrowed $300 the first time, try borrowing only $200 the second time. Paying back $200 from your paycheck will be easier than paying back $300.
Use the Money Wisely
The other thing to keep in mind is that you should make sure you use the proceeds wisely. In other words, do not go and spend all the money just because you have it. If you can keep some of it, you could use it to repay the loan when it is due.
Cash advances offer a great and easy way to borrow money when you really need it. To learn more, contact a cash advance lender, such as Cash Depot Inc.