Cash Advances

Cash advances are an option when there is a need to pay bills before payday.

These cash advances are given based on credit card or payday checks that are due to arrive. As would be expected the rates that are charged on these cash advances are somewhat higher than other forms of credit as the companies lending the money are aware that people only apply for cash advances when they are financially pressured.

Cash advances are given for a very short term so that in the event of the borrower being unable to make repayment of the principal, the loan will roll over with the interest increasing accordingly.

There is a lot of competition in the market for cash advances so the lending companies have made it a lot easier for people to borrow money in order to get their custom. By building this customer service the companies will sometimes advance money with no interest if the principal is paid back before the payday. This is done in anticipation of earning high interest rates from that customer when future loans are requested.

While cash advances might be required in emergency situations, such as medical bills or the payment of credit card debt, it is unwise to get a cash advance if there is an alternate solution that could result in lower interest rates.

By making cash advances easily accessible to more people there are an increasing number of people who are getting into financial difficulty by using cash advances as a ‘quick fix’ for their money woes.

Cash advance lawsuits are quite rare as most of the lenders take sufficient precautions before lending money to ensure they will recover their capital.

Most cash advance companies have websites where applications for money can be made online. Many of the major banks also offer cash advances as do some of the leading retailers.
It is generally recommended that a cash advance be used as the last resort for obtaining money after all other avenues have been exhausted.

Avoiding Loan Penalties

Have you ever been late on a loan repayment? It seems that just at the time that you need it least, banks and other lenders slap hefty charges on your account. This is the last thing you need, especially when you’re finding it difficult to keep up with your repayments. It’s like a spiral, you’re late on a payment, so you get a late fee, then the fee makes it harder to meet your next payment so you get another late fee, or a late fee from one of your other accounts. Before you know it all your money is going on late fees instead of on the payments themselves.  

So how do you deal with this situation? Well the first thing to know is that you can never be charged a late fee for being late on repaying an existing late fee. For example, suppose you owe $100 on a credit card. If you were late you might incur a $20 late fee. On your next month you’ll still owe the $100 plus interest, but you’ll also owe the $20 late fee. If you only have enough for the $100 plus interest, pay that, and tell the lender in your bill payment that it’s for your regular payment. You’ll still owe the $20 late fee, but you can’t be charged a late fee for not repaying it on time. 

So a piece of advice if you’ve got more than one account, is to try and stay up to date on all but the late one. Don’t be late on one account this month, and another account next month. Stay late on the same account for both months. The reason for this is that the account you’re late on can only charge you so many fees. If you let yourself get late on different accounts, each of them can slap you with fees. What You Should Do If You Can’t Pay On Time If you think you’re going to be late on a repayment, the best thing you can do is call the creditor and tell them.

This is a lot better than if you simply allow the bill to go unpaid without any explanation. Many creditors will allow you to reschedule your payments, or give you extra time without charging you for this. They prefer to work with you on getting the bill paid, rather than letting the bill go unpaid and leaving them in the dark as to your intention. If the creditor you’re going to be late on doesn’t allow you to reschedule the payments, you might want to try with another of your creditors, and then let that one get a bit late instead.