Cash Loans: The Good, the Bad, and the Debt-Free

Happiness is what they're selling. Relief from the crushing weight of that gigantic rock we're all forced to carry called 'financial burden.' It's heavy and cumbersome, and the very thought of unloading it for a short time is so tempting, that some of us find it easy to throw caution to the wind and apply for the quick cash loans these small payday advance lenders offer.

Why not? The cops towed your car off, and you need eighty bucks to pay off the ticket. You can't work without your car. You don't have the money to get your car. You don't get paid until next week. A cash advance seems like the logical solution. They don't even look at your credit history. They just want to see a paycheck stub and a bank account. How easy is that? Then there's that thing you've been wanting to buy...it's only a few bucks more, so you may as well make it a hundred instead of eighty dollars. Oh, and your kid has been begging for that game. Another twenty won't make a difference.

The excuses for more will keep adding up, and here's this company ready and waiting to hand you a wad of cash. Cold hard cash. The kind that's easy to spend, because it's in your pocket (burning a hole) instead of in the bank (waiting for bills).

Why not? Because if you don't have the money you need saved in the bank, it shows you have a hard time controlling your spending habits, and you're probably going to have a hard time paying off cash loans. This means a new set of weekly fees that you hadn't planned. Before you're through, you'll end up spending much more than you borrowed just in interest and late fees. Stop the mad cycle of easy cash loans and payday advances. You might have no choice but to borrow, but following a few simple steps can help eliminate the painful after-math of a cash advance.

Only borrow as much cash as you need

This might be one of the hardest parts. When you're applying for a cash loan, and you know you'll be out of diapers before your paycheck comes, it's so tempting to add a few bucks of spending cash to the credit line.

Stop yourself right there. Ask yourself a few questions.

  • Do I need this money right now?
  • Will I spend the money immediately on something that is necessary?
  • Can I do without the money by conserving my resources?
  • Will I actually use the money on this excuse, or will I end up blowing it on something frivolous?

Can you wait for the extra money? You probably can. It's nice to have everything you want without waiting for it, but it will save you a lot of money if you just hold off until payday.

Will you spend this money immediately? If you want to advance an extra thirty bucks so you'll have enough to for gas on Friday, you should reconsider. If you know for certain that you'll need it, fill your tank on the way home. Don't carry the extra cash in your pocket, because you're likely to spend it on something else.

Can you find another way to get by? Most of us are surprised by what we can accomplish when we're strapped for cash. Use only half the soap for laundry loads. Buy the cheap hotdogs for supper tomorrow, and reheat last night's meal for tonight. But don't use credit.

Are you really going to spend the money on what you think you're borrowing it for? Cash is hard to hold on to. You know your habits. If you've blown the grocery money at a restaurant before, then don't borrow it.

Don't let the late penalties kill you

You've followed good sense and only borrowed what you needed. You skimped by on as little as possible, and now your pantry and gas tank are empty. You want to stop at the bank, cash your check, and buy a few things before going to the loan company to take care of your advance.

Here's where you'll make your biggest mistake. When you have your paycheck, go straight out and pay off that loan...all of it. The groceries can wait. The movie rentals can wait. Your only concern should be to get out of debt. Most loan companies can cash your check for you. This will make it easier to do all at once. Don't spend a single penny until your debts are satisfied. If you delay your payment, or only pay it partially, you'll start that ugly cycle again, and who knows when it will end, or how much extra you'll spend. Sell all your toys and eat macaroni and cheese for the next two weeks, but settle that loan.

Now it's time for discipline

You borrowed only what you needed. You paid all your cash loans in full the very day your paycheck came. Now you're debt free and living easy on payday. You even have a few extra bucks in your pocket. Maybe you can afford to buy the gourmet coffee. Just one cup to celebrate. Oh, and a doughnut to go with it. Wrong.

Now comes the real work. Now it's time to roll up your sleeves and keep this from ever happening again. You need to restructure your spending habits. You need to stop thinking of those extra dollars as spending cash, and start thinking of them as your safety net. Put the money away. Put it in a different account. Not a checking account, but a savings account. One that you need to actually go to the bank in order to withdraw, because the situation will rise again. You'll have another emergency, and you'll need cash. Your car will get towed again, your water heater will stop working, or you'll get a tooth ache and have to go to the dentist who only accepts payment at the time of service.

Here are a few tips to avoid frivolous spending.

  • Don't carry cash. As mentioned before, cash burns a hole in your pocket, so don't keep it with you. If you feel it's necessary to have a stash, keep it at home.
  • If you're spending more than fifty dollars, sleep on it. We've all bought things on the spur of the moment and regretted it later. If you make a strict rule and hold yourself to it, you'll cut down on most of these regrets.
  • No credit means good credit. Cancel your credit cards. All of them. If you can't do it, then take your one credit card, put it in a Tupperware bowl filled with water, and put the bowl in the freezer. Eliminate any records you have of your credit card numbers.
  • Go through your monthly bills and decide which ones to eliminate. Don't 'decide if you can eliminate any.' Decide that you're going to get rid of at least one and figure out which one it is. We all have unnecessary monthly bills. Be honest. Do you really need two cell phones? Do you even need one? If you can eliminate one of them, and put exactly that amount away every month, you'll be surprised at how fast your safety net grows.
  • As you put away your groceries, look for items you can do without the next trip. Most people could cut down their grocery bills by over 25% just by not buying what will go to waste anyway. Look at everything you throw away, and ask yourself why you bought it to begin with.

    • Cash loans are convenient, and sometimes necessary, but they are not ideal. They are for emergencies, but with some careful planning and healthy spending habits, you can avoid the need for them altogether.

    Virginia Douglas is a freelance writer for http://www.faxless-payday-loans.net an online website that offers information about fast cash loans and payday advances.

    In The News:

    pen paper and inkwell


    cat break through


    Getting That Car Loan: Simple Interest Is The Best

    So here's the situation: you are buying a car but... Read More

    How to Make Sure You Become a Profitable Trader

    Regardless of your trading style; day trading, swing trading, or... Read More

    Finding A Thin Credit Or No Credit Motorcycle Loan

    It is no secret that thin or no credit can... Read More

    Steps You Can Take To Protect Your Financial Information and Personal Identity From Fraud

    Financial fraud and identity fraud are one of the fasted... Read More

    Shopping for a Personal Loan

    Most Internet users are now extremely comfortable using the Internet... Read More

    A Look at Common Types of Loans

    People sometimes wonder about common types of loans, especially with... Read More

    Simple Tips On Getting Your Loan

    So, you want to get a loan?Here are some simple... Read More

    Secured Loans Information

    A secured loan is a personal loan which is generally... Read More

    The Truth In Lending Act

    With a stated objective to help consumers, Congress deemed it... Read More

    Need a Personal Loan? Have Poor Credit? See if a Payday Loan Would Work For Your Needs

    Poor credit and a financial emergency don't seem to mix... Read More

    Payday Loans - Bridging The Void Between Paychecks

    Emergency - the word is written everywhere in red and... Read More

    How to Finance a Small Business

    Confused by how to finance a small business? One key... Read More

    Financial Openings Without Warranty Alias Unsecured Personal Loans

    Isn't it the trillionth article on unsecured loans? All are... Read More

    Refinancing Your Auto Loan

    Refinancing your loan is one of the best kept secrets... Read More

    A Guide to Getting a Debt Consolidation Loan UK

    If you're getting in over your head with credit, you... Read More

    Bridge Loans: Everything You Wanted To Know

    As the name implies, bridge loans fulfill a vital need... Read More

    All About Bad Credit Secured Loans

    Bad credit secured loans are a relatively recent addition to... Read More

    What is an Unsecured Loan?

    An unsecured loan is a personal loan where the lender... Read More

    What is Credit Insurance?

    Are you wondering what is credit insurance? Very simply, credit... Read More

    Alternative Ways to Avoid Payday Loan

    If you spend more than you earn on a regular... Read More

    If You?re Looking For Low Cost Car Finance, Loan Companies Offer Some Great Deals

    These days having a reliable and safe vehicle to drive... Read More

    How To Apply For a Business Loan

    Worried about how to apply for a business loan? Although... Read More

    Factoring vs. Bank Loans

    Is factoring a type of loan?No. Even though invoice factoring... Read More

    Business Loans: If You Know How To Make Good Use Of Money And Expertise

    Are their rewards of being your own boss? Yes, in... Read More

    If You?re Looking To Borrow Larger Sums of Cash a Home Equity Loan Could Prove Ideal

    There are a number of different loan products available today,... Read More

    The Average Profile of Customers Opting for a Payday Loan Cash Advance

    Payday loans are loans of a small amount, taken for... Read More

    Demystify the Allegorical Misinterpretation of Bad Credit Personal Loans

    Every time you go for a loan, the bad credit... Read More

    Taking the Time to Find a Homeowner Loan UK

    Trying to find a good homeowner loan UK can end... Read More

    Short Term Solutions to Cash Flow Problems

    If you're in a crunch for money, either because of... Read More

    6 Key Points to Evaluate Online Lenders

    The internet is teeming with lenders who are vying for... Read More

    Bridge Loan

    A buyer of a new home may find himself or... Read More

    A Brief History of Loans

    No one can say for certain where the history of... Read More

    Bad is the Opposite of Good... Is It? Not with Bad Debt Personal Loans

    'Bad' means 'bad' no matter where you go! It is... Read More