Cash Advances an Omen or a Blessing?

cash advanceBefore starting the debate or whether or not a cash advance is the best thing to opt for, let us focus on what it primarily is. A cash loan advance or cash advance is that which is given to you by a certain credit company that also provides online loan services. However, the question that first pops into mind is that when and why do you need cash advance?

Well, the answer to that particular question is that sometimes, when your bill payment is very close to the deadline date, and your credit card has maxed out, there is no option but to turn to an alternative. Now even though some people may find it okay to ask for money from friends and family, most people are not comfortable with it and so they the cash advance instead. Bill payments aren’t the only reason why people may ask for the upfront cash from service providers, but it is one of the primary ones.

As with everything else, all is not good with the cash advance. There are few benefits and some disadvantages as well. So, if you are going to be asking for a cash advance, just make sure you weigh the pros and cons so that you can make a better judgement on what needs to be done.

Pros

  1. One of the main reasons why people are opting for cash advances is because you get them pretty quickly. Some companies have the policy to grant them to you within a day or two, while others may take a week and no longer.
  2. Getting the cash advance is extremely easy. You don’t necessarily need an ATM or a bank, and this will be a great help when you are travelling and short of money somehow.
  3. Unlike other loans, it is very easy to qualify for a cash advance. All you need is the proof of a job and a steady and constant pay check, and you will be granted the advance immediately.
  4. The return payment of the pay advance is expected to be made in a month. This helps you get free of the debt in a shorter amount of time.

Cons

  1. The first major setback of cash advances is that they are given in very short amounts. Even though each service provider has a different policy, most will only grant from 500-1500 to an individual.
  2. Of course, interest rates apply to cash advances, and they are pretty high. Generally, the interest rate for cash advance is 18% and will exceed further if you do not pay on the right time.
  3. Lastly, because cash advances are so convenient, you may get addicted to them overtime. Getting addicted to them will mean that you take out more cash advances within a time frame and this will cause you to be in a very bad debt situation.

So, as a conclusion, we can say that a cash advance is a good idea if you are in a condition where money needs to be paid pronto. However, it is only a good option if you are a professional person and if you are sure that will be able to pay them back within the specified time.

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Is Making Minimum Payments on Your Mortgage a Smart Thing to do?

Understanding MortgagesMortgage plans have become extremely flexible for the last couple of years. However, the two most common ones are those of the 15 yrs and 30yrs. Now the question that we have proposed for you is that whether or not making minimum payments on a mortgage is actually something smart.

Well, the thing is that even though many people prefer making minimum payments on a 30yr plan, there are no benefits to the plan other than one. The only benefit of going with a minimum payment on mortgage is that you don’t have to worry about paying large amounts of money at a time. Still, despite its popularity, the fact remains that with minimum payments, you also have to pay a higher interest which gets you into a situation where you end up paying more than someone who is paying over a 15 yr period. The only benefit of a minimum payment is that it is flexible.

On the other hand, the experts recommend that it is a good idea to pay off your mortgage payments as soon as possible for the following reasons.

  1. The first thing that paying off a mortgage early provides is the ultimate peace of mind. Once you have no more payments to make, you can stop worrying and enjoy the house to yourself. The feeling of not owing anything to anyone is great, with the full mortgage payment paid there is no need for you to fret about debts and other such tensing situations.
  2. What, in your viewpoint is the greatest fear a person has to face these days? The fear of unemployment of course. With the recession going about on such a high scale, no one is safe and so most of us worry about losing our jobs. However, another fear associated with the fear of losing the job is not to be able to pay off the mortgage if you are jobless. Now consider a situation where you have lost your job but have also paid your mortgage payment in full, you will of course feel depressed but you won’t be as anxious.
  3. With the mortgage paid off, you can finally start saving money for future purposes. Also, paying it off will provide you with a motivation to reach the savings goals as you would have already reached one goal successfully.
  4. Once you have paid off the mortgage, there are no longer any interest rates. Plus, as mentioned, the shorter the mortgage period, the lower the interest rate. So let’s say you have managed to pay the full mortgage of a house in 10yrs instead of 15, in this case, the interest rate will be a lot lower than the original.
  5. Finally, getting rid of the mortgage is great because you no longer need to stop yourself when you want to buy little things. Now that you don’t need to save for the hefty mortgage price, you can shop as much as you want without having a care in the world.

So you see, making minimum payments on a mortgage is actually not such a smart thing to do. On the contrary, paying off the mortgage is something you should start thinking about.

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How to Manage & Control Your Finances

financesManaging your finances in these trying times is hard no matter where you live. At first, if you haven’t handled anything like it before, you will probably also be overwhelmed with the things that you have to take care of. Finance is a huge topic and only some of the areas that it covers are: Electricity bills, credit card bills, mortgage payments, loans, travel costs and of course the monthly expense as well. You must remember that although there is a multitude of information online, everything is scattered and going through all of them will be quite hard and impossible. Continue reading

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