When Should You Borrow A 1 Hr Cash Advance And When Should You Avoid It?
A 1 hr cash advance, as the term suggests, is a quick loan program that provides you instant cash, within a matter of just an hour. However, it is very important for you to understand that everything that is easily available does not necessarily have to be useful or healthy for you. These cash advance loans come into that category – they are easy and quick but they do not make a healthy financial option. The vast majority of consumers who borrow these loans end up acquiring mountains of debts within a very short period of time. This happens not just because the borrowers are financial indiscipline or irresponsible, but because these loans are structured that way to create a debt trap. Therefore, you have to be very careful if you are considering borrowing these loans.
Paying Off Your Existing Conventional Debts Using A Cash Advance
It is quite unfortunate to see that many people borrow a 1 hr cash advance just because they need some instant money to keep up with the monthly payments towards their existing conventional debts, such as mortgage or car loan. This is the worst and most stupid financial decision that a person can ever make. It is very important for you to keep in mind that these quick payday loans come at an extremely high price tag. You are issued a very small amount of loan, say $500, for a very short period of time, usually two weeks, but you are supposed to repay over $800, including interest and other charges. There are, in fact, lenders who charge interest at the rate of over 800% per annum plus addition finance charges. The reason why people still go ahead and borrow these extremely costly loans is just because it offers them instant money and a quick temporary solution. But, a temporary solution is not a true solution at all, especially when you know that you are going to be in a much bigger trouble very soon.
Instead of borrowing a 1 hr cash advance, you should consider talking to your conventional lenders who you have to make the payments. They are not going to kill you or send you to jail when you discuss your financial problems with them and let them know that you are unable to keep up with the payments. Many people fear that if they contact their mortgage company, they will put their home into foreclosure. This usually does not happen. It is very important for you to understand that even mortgage companies want to avoid foreclosures because they eventually lose money that way. Likewise, if it is a car loan, your lender is not at all interested in selling your car to get their money back. In fact, when they find out that you are having difficulty in making the payments, they are very much likely to offer you some better solutions, such as interest-only payments for certain number of months, which means you will just have to pay the amount of interest for a few months until your finances get back on track and you are financially capable enough to keep up with the actual monthly payments. Always remember, talking to your lenders when you are unable to pay off the debts can always bring you the best and most affordable solutions.
Borrowing Money To Pay For Unexpected Car Repair Or Medical Expenses
Another very common reason why people borrow 1 hr cash advance is when they are hit with some unexpected but very urgent expenses, such as a medical or a car repair bill. But, considering the very fact that these quick payday loans are extremely costly, you are strongly recommended to look for better alternative solutions. For example, if you always visit the same doctor for medical treatment or the same car repair agency every time your car breaks down, you can take advantage of the very fact that you are a regular client for them. You can request them to accept a post-dated check as payment instead of cash. Since the market is highly competitive in almost every field, they are very much likely to honor your request as an attempt to retain their customers and to build a better relationship with them. If this strategy does not work in your situation, you can consider requesting an advance from your employer. You can make an offer to deduct the money borrowed in advance directly from your salary. This is probably the safest way to handle a financial emergency like this. Since the money will automatically be deducted, you will not have to worry about the repayments. There is no question of missing the due date. In fact, you can get an advance even without needing to pay it back provided you offer your employer that you are willing to work overtime. You can adjust the repayment for that cash advance by working a couple of extra hours every day till the loan borrowed from your employer is paid off in full.
The worst cases are the ones where people borrow quick and easy 1 hr cash advance to fund their vacations. In short, you should stay away from these costly loans and should always look for cheaper and safer alternatives. If you must borrow it, you should at least make sure that you have a repayment plan ready with you and that you are capable enough to pay off the debts in time.