3 ways to fully use a cash advance

Taking out a cash advance could be a great solution if you need extra money until your next paycheck.

A cash advance is a short-term loan that you could consider to help you meet your short-term financial needs. But it’s important not to treat it as free money but as an opportunity to make intelligent decisions with what money you don’t have yet.

Here are three easy ways to ensure you’re fully taking advantage of your cash advance!

1) Pay off your bills

It’s not always easy to stay on top of bills, especially when unexpected expenses arise. Here are a few bills cash advances could be handy for:

Home repair bills

Unforeseen home repair bills could be a burden, especially if you don’t have the money to cover them. A cash advance could help you pay for those repairs and ensure your home is safe and secure again.

Just make sure you borrow only what you need and can afford and pay off the loan on time.

Car payment

Cars are a crucial part of our daily lives, and most people need them to commute to work, school, or other activities. However, cars could be expensive, and car payments might add up.

Falling behind on your car payments could result in repossession or even losing your job if you can’t commute. That’s why a cash advance can be beneficial since it could help you catch up on your car payments and save you from losing your vehicle.

2) Avoid tapping into your reserved funds

When unexpected expenses come up, it can be tempting to dip into your savings, emergency fund, or even your pension. However, if you’re not careful, this could lead to dire consequences in the long run.

Let’s explore the benefits of using a cash advance rather than tapping into your reserved funds:

No risk of depleting savings

You should reserve your savings for long-term financial goals or emergencies, not everyday expenses.

If you dip into your savings every time you need cash, your savings could empty in no time. By taking out a cash advance, you can avoid this risk—plus, they’re usually easy to qualify for, so you could get the money you need no matter the circumstance.

Avoid early withdrawal penalties

If you have a retirement account or pension, it might be tempting to withdraw money early. However, this might come with steep penalties and taxes that could eat away at your savings.

Taking out a cash advance may allow you to get the money you need without dipping into your pension or retirement account. Plus, you won’t have to worry about paying back the advance until your next payday making it ideal for financing a temporary issue.

Protect your emergency fund

You should reserve your emergency fund for emergencies, like a serious car repair or extensive home plumbing issues.

Dipping into your emergency fund every time you need cash might leave you vulnerable in case of a major emergency.

3) Buy something you want

Whether it’s a holiday or a new device, there may be something you want to buy. However, it could be difficult to justify if you’re short on money.

Let’s take a closer look at how you could buy the things you want with a cash advance:

Travel

Travel, whether a quick weekend break or an extended holiday, is often expensive. But with a cash advance, you might be able to book your dream vacation without waiting months to save up.

By using a cash advance, you’ll have the flexibility to book your flights, accommodation, and activities without immediately worrying about the cost.

New gadget

Tech enthusiasts know that gadgets don’t come cheap. From the latest smartphone to the newest gaming console, the price tag might be a little daunting.

But with a cash advance, you could upgrade your tech without waiting until your next payday. Whether you use it to buy a computer or a new television, you have the flexibility to choose what you want.

Final thoughts

Taking out a cash advance might be a great way to handle expenses while avoiding costly late fees that are often applied when you miss payments.

With a cash advance, you could quickly get the money you need without committing long-term. If you do take out a cash advance, using it wisely is vital—whether it’s paying off your bills, avoiding tapping into reserved funds, or buying something that will make you happy!