Cash advance loans are small, unsecured personal loans for amounts ranging from $100 to $1,500. Generally, the company making a cash advance loan only requires proof of employment and/or income and a bank account as verification of your ability to repay the loan. The loans are short-term – most require repayment in full in one lump sum within two weeks. The repayment method varies. Most often, the cash advance company requires that you give them a post-dated check or agree to an EFT transfer for the amount of the loan plus their finance fee on a specified date.

According to several recent surveys of people who use cash advance loans, the typical user is young, educated and has a full-time job. The general reasons for applying for cash advance loans are to meet unexpected financial needs (a car that needs servicing, or medical expenses not covered by insurance, for example), or to take advantage of an opportunity that they can't afford ‘this month', but which won't exist next month. Are cash advance loans the right choice for you?

For most people, cash advance loans are a convenient short-term financial management solution that can help them avoid bounced check fees, late payment charges, higher interest rates and bad credit ratings.

When you're considering a cash advance loan, there are some important facts to keep in mind.

· Cash advance loans allow you to meet unexpected financial obligations without involving revolving debt and months of payments.

· Cash advance loans are not meant to be a way of regularly managing your budget. If you're using cash advance loans to meet your monthly expenses every month, you should work with a credit counselor to help you manage your money and deal with your debts.

· Cash advance loans are meant to be used once in a while to get you through a financial crisis. If you use them repeatedly, you could be digging yourself deeper into debt.

Using Cash Advance Loans Responsibly

Cash advance loans can get you through sticky financial times. Just like any other kind of debt though, you can end up digging yourself deeper into debt if you rely on them to manage your budget regularly. Here are some guidelines for managing your credit and cash advance loans responsibly from a major provider of cash advance loans.

· Review your account status with your cash advance loans provider regularly so that you know exactly how much and how often you're borrowing from them.

· Are there alternative sources of credit available to you for a particular need? For instance, does your bank offer overdraft protection for a small fee? If so, you can reduce your reliance on cash advance loans.

· Are you taking out a cash advance loan immediately after paying one off? Some payday loan providers impose limits on how many consecutive loans you can take out. If you find yourself unable to meet your regular expenses on an ongoing basis, cash advance loans may not be the right solution for you.

If you find yourself using cash advance loans on a regular basis just to get from one payday to the next when you haven't had an unusual emergency financial situation, a credit counselor can help you straighten out your finances. If, on the other hand, you have a short-term pressing need for an advance on your paycheck, then cash advance loans are the way to go.