Baby Boomers U. S. (The Blog)

How to Use a Cash Advance to More Keep Money in Your Wallet?

Posted: 01 Jul 2012 03:39 AM PDT

The real BBUS post can be found here… How to Use a Cash Advance to More Keep Money in Your Wallet? by Joe Hauckes © Baby Boomers U. S. (The Blog) . Not on Senior Zen!

This is a Guest Post by Sarah James, Freelance writer and advisor. If you would like to Guest Post for Baby Boomers US, check out our Guest Post for Us page.

We all face financial complications every now and again. Life is not perfect and neither are you. However, that doesn't mean we make a million sacrifices in order to get by! This is where using a cash advance service can be a great exit strategy.

What is a Cash Advance?

A cash advance is just like any other financial advance that you get. However, you do not pay back a cash advance overtime like many other forms of debt. Payday cash advances are the most common form of cash advances today. It is simply an advance where the borrower gives money to the borrower who promises to pay them back with their next paycheck (or a part of it).

This is really useful if you need cash urgently a few days before your payday. Furthermore, cash advances don't incur credit score drops as credit card usage does. This is primarily because there is a guarantee of payment within a few days. The best part about a cash advance is the fact that you can get it almost instantly. However, the average payout time is 24 hours.

There is usually a slightly higher interest rate associated with cash advances. However, times have changed. Instead of charging higher interest rates, most lenders charge a simple service fee; an amount that changes with the amount borrowed.

Though, just like a credit card, most lenders charge a small fee for their cash advance services. When compared to the minimal or no credit drop and the almost instant cash, these small fees seem insignificant.

However, you have to be careful with cash advances. Never take more than you need. For example, most cash advance services will give you a choice of whether you need an advance on a little bit of money or an entire paycheck's worth.

More Cash in your Wallet

One of the most common reasons for acquiring a cash advance is to keep more money in your wallet. When you are given a cash advance, you will obviously have more money in your wallet. This can be crucial if extra purchases are required in the times ahead.
For example, if you have 2 birthdays, your anniversary and a loan repayment ahead in the month, a cash advance is a great way to have more money in your wallet. At least you will not run out of cash in front of other people.

Paying off a Debt

One of the best uses of a cash advance is to pay off your debt. Taking cash advances can be one of the easiest ways to make repayments on time. You may have to make a loan repayment on the 5th of the month. What if you don't receive your paycheck until the 10th? If you don't pay the repayment on time, you will incur a penalty. This is where a cash advance comes in handy.

When you take out a payday cash advance, you can quickly pay off your loan. 5 days later, all you have to do is give the amount you borrowed to the lender directly from your paycheck. At least with the cash advance service, you will be able to save yourself from the penalty fee.

Unexpected Emergencies

Unexpected emergencies strike us all. They may not happen every day but they are highly problematic when they do. The most common emergency is a medical problem. When an unexpected medical emergency occurs, we normally do not have the money to pay for the treatment. This is especially true if your insurance doesn't cover the treatment and you do not have enough credit left either.

In such a situation, cash advances are ideal, as they are your only way out. Either that or take a loan from a private lender at a high interest rate.
If you want to keep more money in your wallet, try applying for cash advances. Once you pay off a previous cash advance, you can take another one. This makes cash advances a long-term solution to all your financial needs; expected or unexpected.

About the Author: The above article is composed and edited by Sarah James. She is associated with many finance and loan related companies as their freelance writer and adviser. In her free time she writes articles related to debt relief. For more information check out Consolidated Credit for debt settlement advice.