Is Cash Til Payday A Good Alternative ?

By: MIKE SELVON

Pride can be a huge deterrent when it comes to asking for help. Sometimes, people find themselves in a financial bind and need some cash til payday, but will not ask family or friends for help. They may not have enough credit on their credit cards to pay whatever bill has come up or they may not have credit cards.

Payday advance businesses are the answer but may not be the best solution for your immediate crisis. There are some factors you need to consider before signing up for a cash advance loan.

Here is a little rundown on how a quick cash advance institution works. You bring in the required information, such as your last bank account statement, last paycheck stub and your identification.

You fill out a payday loan application and then are approved for a certain amount of money. On your next payday you come in and repay them the initial amount plus interest.

It is the interest that can hurt you. Cash til payday is a good idea if you really need the money, but it can quickly lead to another debt that is forcing you farther and farther into a cycle of "money owing." The interest rates on cash advances are brutal.

You could be paying as much as a hundred and fifty dollars of interest for that five hundred dollar loan. Your budget was tight to begin with, and now you have another liability.

The quick cash advance idea is marketed towards individuals who live paycheck to paycheck. They want you to come in and use their service. They want you to take out numerous loans because it means more money in their pockets. However, if you do not have a checking account or are not working and receiving a regular paycheck, as some do not count unemployment payments as a form of income, then you will most likely be denied.

Cash til payday is a good temporary fix if you have enough income to cover the interest. If you do not, then you may want to try other options before turning to a payday loan company to help you through the bind. Have you considered going to the bank and asking them about overdraft protection or going to a friend for a loan? You can still pay the friend interest and work out a repayment plan.

Most friends do not mind lending money if they know they will get it back. So do not let pride get you into a situation that you cannot get out of without risking your health and sanity.

Money Management
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