Friday, August 14, 2009

Don't Fall Victim to Cash Advances

By Colin Jones

The very simple and convenient ways by which lenders are making cash advances available to people who need money on a short, temporary basis, is creating a social problem called "cash advance dependence." Many people are not even aware that they are becoming dependent on these regular, temporary cash advances.

These individuals are creating an insecure, destructive 'safety net' for themselves. However, they do not fully realize it or are even aware of it. The best thing is to admit to yourself that you have a problem and get yourself out of it. Just going from loan to loan, month to month is a very dangerous method of running your life. Just think, if you missed a couple of payments elsewhere and spoiled your credit status, this credit line would soon vanish too.

People are finding out just how simple it is to obtain money with the modern methods of easily obtaining cash advances. In some cases, this means that some people are taking up cash advances even when they do not have a financial crisis, which is what cash advances were first intended for. Some people are even using cash advances even for a birthday present or a costly night out.

It really is the case, that people are using the cash that they get from payday advance loans, to go on holiday, buy a new car or something to that effect. This is obviously not the right way of using this financial implement. This is in fact abusing the privilege that one obtains from being able to draw a cash advance. It is also destructive to one's learning of how to handle money properly.

The "no credit policy" of most local stores is also one of the reasons why people are becoming cash advances addicts. It means that people feel that they have to borrow money from a loan advance company, which means in turn that they end up with a much larger debt to repay. If this train of events goes on unchecked, it can result in some people having to file for bankruptcy, in turn transforms the problem from being only a personal one into a much larger, social problem.

The most proactive action you can take is to get out of debt as soon as possible. You could seek help from a financial adviser from your bank or from another private financial sector company. It is their job to help you take a step in the right direction by making regular payments, which will eventually get you out of debt. Soon, you will be able to enjoy your interest free, hard earned money and will be back on track to a better and healthier financial situation.

However, after having said all that, I want to say that cash advances are not to be blamed for our own human weaknesses: the lack of financial education is the actual culprit here.

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