To Borrow or Not To Borrow



Getting a loan has its pros and cons. But when you're wedged in-between paydays with an emergency bill to pay, you dismiss the cons of getting a cash advance. The priority is to have some peace of mind and a chance to restore your financial house to order.

But if you are keen on solving a temporary financial glitch, then take care not to enmesh yourself with more loans and unnecessary fees that will slash your budget to shreds. Let a cash advance just be that - a way out of a problem, not a way in to more problems.

Borrow if you must, but borrow with the understanding that you can pay the loan in full when the due date falls. If you can't pay the loan amount in its entirety, forget about getting a quick loan. You owe it to yourself to be more circumspect when you're dealing with money - yours.

What Goes Into Your Cash Advance

For every $100 you borrow, you have to pay $25. If you are borrowing $200, you're going to issue a personal check to the lender in the amount of $250. You are shelling out an extra $50 just for a two-week loan term. This is peanuts compared to the anguish of a pressing debt, which cannot wait until the next payday.

If you cannot pay the loan on due date, you can haggle for a rollover of your loan, meaning you pay the $50 and commit to another $50 for another two weeks. The rollover will become vicious, and you will be paying more than your original loan. If you can, avoid the rollover. It makes the loan frightfully expensive.

So before you borrow the money, weigh your circumstances. If you cannot pay the loan on the due date, forget it, or you will be rolling your loan over to kingdom come.

Advantages of Getting a Cash Advance

Every employee has a love/hate relationship with fast paycheck loans. The loans become a burden when these are not paid on time, but these are great lifelines when you have run out of excuses to a creditor. Advantages of this kind of loan include:

* You get the money within minutes.

* You need not worry about your credit history.

* You can roll over the loan if you're still short of cash on the next payday.

* You can borrow as much as $1,500.

If you have taken out a loan, prioritize the repayment. This is the way to putting your finances back in shape. Sometimes people just dismiss the idea. After all, the fees are manageable, but if you calculate the costs, you might be alarmed that you have been spending more money on the fees, rather than on the principal of the loan.

But if you know your responsibility and do what you are committed to do, any loan, whether a long term loan or a cash advance, can get you out of financial scrapes - fast.