Avoiding Cash Advances for Serious Savings
December 6, 2010 by admin
Filed under Cash Advances
Cash advances, with all their glitter and promise of easy money, are typically the choice that should be your very last one if for some reason, every other option is exhausted and they are your only choice. They have hefty fees, and interest rates that, when figured as an APR, typically exceed 300 to 400%. That should give you serious pause right there, when it comes to thinking about cash advances at all!
So what other options are out there besides these terrible cash advances? Quite a few actually, and all of them are far better choices than the one mentioned above. Perhaps first and foremost you want to ask yourself if the amount you need is too large to ask family or friends to borrow. The obvious advantage here is that you avoid the entire loan-with-interest deal altogether. This may not be a possibility, but it is worth mentioning as some folks dont even think of this, just assuming loan means going to some lender elsewhere.
Another possibility is that if you work for a large enough company, many of them have some sort of hardship assistance available for employees through the HR Department, and can advance you some money against your next check, again with no interest. However, if the amount is too large, this may not be a viable option. At times, people will look to borrowing via hardship loan from the 401k as well, but there are strict criteria for this kind of loan, and while the money is out, it wont be working for you toward your retirement. On the other hand, the interest is usually modest, and after all, you are paying yourself back, so its not completely terrible.
Perhaps the most common option, that can provide good loan amounts that can be used for anything, along with what are often quite competitive interest rates, would be some type of personal loan. Just remember that not all personal loans are the same, so of course you will want to do some shopping to see what is available to help you out. Check locally with your bank or credit union, but also use the Internet to scour the entire country, as you try to find the best deals. Once you gather a number of loan offers and their details, put this information through a free loan calculator, also found for free all over the Web. With this handy tool you can see what your monthly payments and overall costs will be under a variety of different scenarios.
As you can see, there are many options out there, and all of these are better than the cash advance.
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