Advance Loans Are Not for Luxuries
We all have our material aspirations. You may dream of a bigger and nicer home; the newest model of your favorite vehicle brand or a dreamy trip to somewhere far and exotic. Unfortunately, all these luxuries have a price to pay and they can be very expensive too.
You may also face constant temptations from luxuries in your daily life. Small things such as a cup of latte to some sophisticated dinners can compound and make quite a dent on your budget. Sooner or later, you will find out that you don’t have enough money to keep up with this kind of lifestyle.
When you’re running out of cash and you still want to feed your material instincts, stop. You probably think that you can just borrow from a friend or take a cash advance loan just to be in the loop, but that can cause you numerous consequences later on. This is especially true if a third-party loan provider is involved, and these are the reasons why:
Cash advance loans carry expensive interests that compound each time you fail to meet the payment date. Paying between 10-30% in interests can make a difference if you chose to use the loan in more useful and beneficial expenses like utility bills and medical needs.
Cash advance loans can decrease your credit score if you don’t meet your commitments as a borrower. Aside from the interests, your credit score can be affected as well and poor credit score can limit you from more financial solutions in the future.
This does not mean that you cannot spend the cash advance loan to your own discernment. The lender will certainly not meddle with your spending business. But being careful with your finances, especially when using borrowed money, means you also care for your financial future.
Financial experts would advise you to take a cash advance loan only when very necessary and you are confident that you can pay it back. If you have fixed income, you may need to cut certain expenses or try to live lower your means while you’re trying to pay the loan off. Such discipline will also provide positive impacts in your financial health as you will also adapt healthier and better perspectives towards money.
Cash advance loans will certainly address small-ticket money problems but since they come with a price, it is best that you spend the loan wisely and purposefully.