What If I Need A Cash Advance?

It is never fun being behind on paying your bills.  With more and more people living paycheck to paycheck, we often get the question, “what happens if I need money in a pinch?”   That question can spur many different responses based upon your individual financial situation, but what happens if you have to look for some sort of cash advance to hold you over until the next paycheck.   Obviously, you want to exhaust all of your options before you go for the cash advance.  We don’t recommend cashing out of retirement plans like your 401(k) as many people will when they look for cash as the taxes, penalties, and loss of compounded interest on your money could be detrimental to your long term retirement plans.  I need a Cash Advance – So, what to do?

There are many companies that offer these types of programs to get a small loan between $100 and $1,500.  For example, companies like CashNetUSA are in the business of providing these Short term loans with a quick and easy on line or over the phone process.  Your credit score may not matter depending on the size of the loan.  There are many different companies on the internet, so do your due diligence and here are some traps to watch out for if you go down the path of getting a short term cash advance loan.

1. Out Of Country Lenders – I’m not talking about the e-mail scams.  Loan operators from places outside of the country such as Panama and Costa Rica may charge substantially higher fees.  Make sure that you have a phone number and an address in the United States that you can verify before you sign any paperwork.

2. Read The Fine Print- Make sure that you read every line of the fine print before you sign an application.  There may be boxes on the application that expect you to opt out vs. opt in.  These can be for additional promotional offers to discount clubs, shopping offers, or catalogs.   Make sure that the only thing you are applying for is the cash advance loan.

3. Fees– Ask what the up front fees are if any at all.   You should try to minimize your up front costs, and be certain that you understand the terms of the overall rate.   Ask if it is a variable rate or a fixed rate, and what the interest rate is tied to if it is variable.   You need to understand what happens if your payments are late as well.

4. Early Repayment–  You want to make sure that there are no pre-payment penalties if you pay early.  Some lenders will not let you repay earlier so they can collect their interest, or they charge you a significant penalty to repay the loan.   This is a key question to be asking before you take the Payday loans .

If you are constantly falling behind on your bills, it may be time to visit getting a financial plan into place.   Just like any good business, you need to see if you have a revenue problem, expense problem, or some of both.    Take action now, so your household is always on ‘borrowed’ money time.

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Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder oXYGen Financial, Inc.

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oXYGen Financial, Inc. co-CEO Ted Jenkin  is one of the foremost knowledgeable professionals in giving financial advice to the X and Y Generation.

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About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves


My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

Read More About Ted Here

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor regarding your individual situation. 

Background and qualification information is available at FINRA's BrokerCheck website.

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