How to Use a Cash Advance to Avoid the Damage of Large Loans
Large loans sound like a good thing. You get a big chunk of cash and then you work your way through the payments. It’s no big deal, right? There is a frightening truth behind big loans, one that you may not have known about as banks and other lenders pushed you to borrow more than you need. Large loans can keep you in debt for long periods of time and can wreck your credit and finances if you are unable to make payments on time or at all. If you can’t really afford a larger loan, a cash advance is a smart alternative. Here’s why.
Large Loans and the Problem of Repayment vs. Smaller Cash Advances
A large loan is tempting. It provides you with enough money to make life easy—for a little while anyway. It allows you to get one major project done, something you were maybe trying to save money for, but could never quite get there. It allows you to breathe for a while with enough cash to handle bills and other expenses. The problem is that you are now facing regular repayments, weekly or monthly, for a long period of time. Being in debt is not fun. It puts more stress on you than you had in the first place. With a cash advance, on the other hand, you can use the smaller amount of cash to reduce your immediate burden, and have it repaid again in just a week or two.
Missing Payments Will Wreck Your Credit, but that’s Not a Problem with a Cash Advance
When you have to face making regular payments for months, or even a year or more, you also face the possible risk that you are going to make late payments. Paying bills late is the quickest and most effective way to trash your credit score. With a lower credit score you will struggle in the future to get approved for other loans, to get good interest rates, or even to get a job. A cash advance takes away the risk of missing payments, because it’s a much smaller loan and you can repay it all at once, usually with your next paycheck. We also have lenders who will deduct what you owe right from your account on payday, so you don’t have to worry about forgetting to make payment.
Large Loans Cost a Lot More than Cash Advances
A large loan will give you a lot of cash. This is true, and sometimes that is helpful or even necessary, depending on your situation. But if you don’t really need that much money, consider a smaller cash advance. You will actually save a lot of money by going smaller. Big loans keep you in debt for a long period of time, and each time you make a payment on it, you are paying interest too. With a cash advance you repay quickly and spend only a small amount, one time, on interest. If you need cash, but you don’t want to make a big financial mistake, turn to a cash advance, not a big bank loan.
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