Logically, we know that taking out any kind of loan isn’t the best idea. A loan equals debt, and debt means you’re going to struggle to build any kind of savings until that debt has been completely paid off in full. Yet, payday advances in the form of short-term loans like payday loans are still immensely popular these days. Could there be a reason for it?
Why Cash Advances Are Still Popular
Ask anyone, and they will tell you how hard it is to build a decent savings account. Even when you do, you’re always worried that some emergency or event might pop up that will wipe out all your hard work in an instant. Understandably, some people are reluctant to touch their savings.
This is why cash advances, often called payday loans, are still a popular choice despite all the advice to avoid loans and incur any debt. Those who turn to these payday loans are often people who unexpectedly find themselves in a challenging situation financially. If an emergency happens to be out of budget, this fast cash solution presents itself as the ideal win-win solution. You don’t have to touch your savings by opting for payday loans, and you still get to take out a loan with a lower interest rate that you get to pay off gradually, without the debt repayment taking too much of a toll on your monthly budget.
Here are three other reasons why payday advances could actually help with your finances:
Your savings fund stays intact for longer
Save your savings fund for another emergency because you never know when you might need it again. If you can put off touching your savings fund, then you should because you know firsthand how difficult it was for you to accumulate that amount, to begin with. If the cash advance you need is a reasonable sum with an equally reasonable low credit that you can pay off with no problem from your monthly paycheck, then cash advances could be a good way to help with your finances.
They help you stick to your monthly budget
The problem with financial emergencies is how they always fall right outside what you budget to survive for the month. In a time like this, if you keep turning to your savings account for help, you’re not going to have much savings left. Cutting back from your monthly budget might not be a viable option, either, since you’ve already allocated that money for specific tasks and bills to pay. This is where a cash advance comes in handy. Your budget for the month stays intact, and you still get to resolve the financial challenge that cropped up.
The lower cash installments won’t pinch your wallet
Some trusted online lenders are focused on helping customers like you work within your means. For example, to avoid pinching your purse strings too much and still make sure you have enough to survive each month, these online lenders will be willing to offer you the option of a longer repayment period. You still get your fast cash, but you get up to twelve months to pay it all back without the steep interest rates that traditional lenders might try to shove on you.