Cash Advances - Advantages and Disadvantages

There are times when people have financial issues and need them to be dealt with right away. At times people may be unable to pay certain bills and can be in a problematic situation as a result. One of the things that some people do in order to pay bills is to borrow money from family and friends. This can be a good option but sometimes people aren't this fortunate and therefore need to seek an alternative. Individuals facing issues with paying their bills may also use a credit card, but if that is maxed out or they can't afford to use any more credit than they need another alternative. This alternative option is known as a cash loan advance.

A cash advance is borrowed money that is given to you on a temporary basis. The lender is usually a company that also provides payday loans, offers you a small loan of anywhere from 500-1500 in order for you to pay your bills. However, this loan is expected to be paid back very quickly and usually you are given one month to pay it back. The interest rate is very high with these loans usually around 18% so this loan can be very expensive and costly if not paid back on a timely basis.

Like most loans cash advances have advantages and disadvantages. The advantages of cash advances are that the loans are given to individuals very quickly; usually within a week if not instantaneous. Another advantage of cash loan advances are that they are quite easy to qualify for. All you need is a job and a steady paycheck and you will likely be given cash advances. The cash advances are expected to be paid back within a month so that this is a debt that people can get rid of within a short period of time.

The disadvantages of cash loan advances are that they are quite small in amount of money given. At times you may need more than $1000 and a cash loan advance may not be a viable option if you need more than $1500 to pay bills or other expenses. Another disadvantage is that the interest rate is very high so that you need to pay the full amount within a month in order to avoid very costly financial liabilities.