There is lingering negativity over payday advances and how they can become a hindrance rather than a help. However, the truth is not so cut-and-dry. You can and should make use of a payday advance should a situation occur when you need fast cash and have no other resources available to you. You just have to make sure you use the advance responsibly.

1. Know Exactly How Much You Need and Why You Need It

You should not take out a payday advance just to pocket cash. You need to have a reason for the advance. You also need to have a specific dollar amount in mind. A mistake that some people make is to borrow too much for their specific need or too little.

For example, if you have a situation where you will lose a needed utility before your next payday, then an advance is fine. You can apply for an advance in the specific or rounded amount that you need. 

If you take more than you need, then you will have more to pay back come payday. If you take less than you need, and have no way to make up the difference, then you took an advance for nothing.

2. Only Borrow What You Can Afford to Pay Back ASAP

You should never borrow beyond your means to pay it back. The whole point of a paycheck advance is that you're sure that your next paycheck can cover it. It's easy to find yourself trapped in a bad cycle of constant borrowing to payback what you initially borrowed, but you should avoid it because:

• Interest will continue to build.
• You will always be behind on the next payment.

Don't do that to yourself. If you cannot afford the amount, then you should not request it. Keep this in mind, because the cash advance service may approve you for far more than you ask for. This can tempt you, but you have to stick to what you can afford.

3. Have a Plan for the Advanced Funds

Always borrow with a concrete plan. That includes,

• What you need the money for.
• Specifically how you plan to use it (check, money order, etc.).
• An exact timeframe for you to use the funds.
• Provisions for paying the loan back on time.

For example, you receive a notice from the power company that they're going to turn off your electricity. You have three days before this occurs. Your next payday is five days away. You know the exact amount you need, so that's what you apply for.

You know that your check will cover that exact amount and then some, so you can afford the loan. You plan to pay the electric company on a specific day and in a specific way before you ever receive your advance.

This is all important because it's easy to receive a cash advance and squander it on things that have nothing to do with your original intentions. By making a plan for the funds and following through, you make sure that you won't misstep with your funds.

So apply for a cash advance with a service like Cash Depot Inc. As long as you remember these tips, you can apply with confidence, and without fear.

Share