If you are faced with a "money
problem," naturally, you look for ways to get that needed money.
Sometimes, you turn to your friends to borrow money at little or no interest at
all. If you can use your credit card to pay off bills or services, you do so.
But there are moments when you are
left with no choice but to get a cash advance. There are moments when you need
the money really fast - and that's when your cash advance could be of such
great help. Never mind the relatively high interest rates, just as long as you
get the money in time for your due date, you are willing to pay the price.
When to Get a Cash Advance
Remember, however, that a cash
advance - also referred to as a payday loan or a payday advance - is
conceptualized to address emergency needs. Therefore, you must ONLY avail of it
if you are in a real emergency.
But what does the word EMERGENCY
constitute? Well, for starters, the following instances qualify for an
emergency:
a. Emergency medical expenses - when
you get sick and you need money to cover for your hospital bills and medicines
b. Late bills - you need to immediately pay off a certain household bill so that you can put an end to late charges; or you need to pay off credit card bills to prevent overdraft charges
c. Minor home improvement - for example, you notice a crack in your ceiling and you need to immediately have that repaired as the rainy season is on its way
b. Late bills - you need to immediately pay off a certain household bill so that you can put an end to late charges; or you need to pay off credit card bills to prevent overdraft charges
c. Minor home improvement - for example, you notice a crack in your ceiling and you need to immediately have that repaired as the rainy season is on its way
These are just some of the emergency
situations that warrant the use of a cash advance. Remember, different people
define this word differently. In a way, the word emergency is relative. So be
careful not to label situations as "emergency" if they are truly not.
When Not to Get a Cash Advance
You should refrain from getting
payday loans - in Toronto or elsewhere - if:
a. You are still paying off another
debt - getting a cash advance to pay off another loan is not a very wise
financial move. It is because in a way, you are doubling the interest rates
that are being charged to you. Remember, your first loan already bears an
interest. If you get a cash advance to pay off that first loan, then you are
welcoming another interest rate into your life. Even if the interest rate is
just 10%, if you get two loans - and consequently two interest rates - then you
are paying at least 20% more.
b. You will use the money to buy
not-so-important stuff - For instance, you are invited to a wedding and you
don't have anything to wear (and so you thought). Since payday is still a few
weeks ahead, you contemplate on getting a cash advance to buy a decent dress.
Well, in this case, you maybe joyful and ecstatic at your friend's wedding day
but after that, you will be stressing yourself out on how you can pay back the
loan - plus the interest. Not worth it!
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