Cash advance lenders’ top 3 ways to improve credit and get debt-free for good
Like their title implies, cash advance lenders are direct lenders that fund cash advance loans. Due to financial issues like debt, the lack of a savings account, and too many recurring bill payments, the majority of cash advance lenders’ customers need quick cash in order to get through a difficult period of time. Cash advance lenders are able to lend up to $1000 to borrowers in these types of situations. The hassle-free, easy-to-use, and easy-to-qualify-for cash advance process is attractive to many customers who want to avoid a credit check and a lengthy application process that comes along lending from other financial institutions.
Popularity of Cash Advance Loans has Skyrocketed
The popularity of cash advance loans has skyrocketed. Cash advance lenders are happy to have more business, but they’re also noticing a disturbing trend among their current borrowers:
“A lot of our borrowers are coming back for more cash advances just a few weeks after they paid off their first advance,” cash advance direct lender Robert T. said. “Cash advances are the best alternative available. However, our service is designed as emergency relief, not as a long-term solution to debt. After it’s all said and done, a cash advance is still a loan. We want to help people when they need it, we don’t want to contribute to making their financial issues worse.”
Most cash advance borrowers take out a cash advance to cover bills, expenses, travel costs, medical bills, and other unexpected costs that come up. According to cash advance lenders, the borrowers who use their services to cover these types of “emergency” costs tend to have the highest satisfaction rates. It’s the borrowers who use cash advances as another form of income that tend to have problems with the process.
Cash Advance Lenders Want to Help You Get Out of Debt
“We want to help our customers get out of debt,” Robert T. said. “That’s why we believe it’s important that people address their current debt situation so they can avoid potential financial problems in the future.”
Here’s a list composed by cash advance lenders that can help borrowers get debt-free in the long-term:
1). Start an emergency fund.
Cash advance lenders suggest putting away some money into savings each month. Even as little as $20 a month can go a long way. If you have an emergency fund to tap into, you won’t need to take out a large loan with high interest rates. Cash advance lenders believe an emergency fund with at least $1000 in it is usually sufficient to cover most unexpected surprises.
“I needed a cash advance when my live-in boyfriend and I broke up,” Rachel, a retail associate from Chicago said. “I needed money to cover the rent. Cash advance lenders were there for me when I needed money to avoid eviction. I even had to take out another cash advance after that in order to pay the fees associate with breaking my lease. After that, I moved into a much smaller, much cheaper apartment where rent was less than 1/4th of my overall income. I’m glad I took those extra steps to get out of those expensive payments. Now I contribute 10% of my income to a savings account. I really feel on top of my finances and I owe it all to the cash advance lenders who talked to me about my situation.”
2). Cut down on spending.
Cash advance lenders realize this tip is easier said than done.
“It’s not just about shopping less, it’s about making decisions on where you put your money,” Robert T. said. “If you make $1000 a month, it’s a little frivolous to pay a $300 car payment. People often think they make more than they really do. It’s easy to justify that you can afford a $300 car payment on $1000 a month, but if the person factored in rent, bills, utilities, food, and fun money, they might be shocked at how little money they have left over. They might squeeze by for a few months, but the one month that something unexpected comes up, they have no choice but to either sell the item or get a loan. It happens all the time. Start a budget and realize what you can truly afford before you make the purchase.
3). Pay more than the minimum credit card payment.
According to cash advance lenders, in order to increase your credit score you need to start taking bigger steps to paying off your credit card balance. The more money you put toward your debt, the more likely your credit score will increase. Even an extra $10, $20, or $50 helps.
“After you have an established emergency fund, then it’s time to pay down the credit cards,” Robert T said. “An emergency fund should always come first. What good is a zero credit card balance if you find yourself in another financial problem and end up having to put new charges you can’t repay back on the card?”
If you follow these three steps, you can be on your way to financial freedom. The theoretical solution, spend less than you make, is much easier said. However, according to cash advance lenders, if you follow these steps you can live a happier and financially stress-free life.
Cash Advances Will Always Be Available
“Cash advances will always be available to those that need them,” Robert T. said. “But we want to keep cash advances as emergency funds, not a month-after-month fund. Borrowers that find themselves needing extra cash on a monthly basis need to look at where their money is going. The debt roller-coaster is not a ride many people can get off of. However if you take these steps, cash advance lenders guarantee the payments and the debt will get smaller over time.”