Many Tennessee residents who are struggling financially need some form of debt relief. There is nothing wrong with that. The problem lies in the type of relief on which you rely.
Sadly, there are some options out there that end up placing people in worse positions than where they started. A great example of this would be a cash advance. This is marketed as a quick-fix solution, but for most, it fails to address the underlying issue and creates a dependency and a cycle of borrowing.
Cash advance basics
A cash advance, also known as a payday loan, is a small loan provided by a third-party lender as an advance on your upcoming pay check. This is something you can apply for at a brick-and-mortar institution or online. The loan amounts offered are usually fairly small, typically not more than $1,000.
If your request for a cash advance is approved, you will receive the money that same day. All you will have to do is fill out a post-dated check for your loan amount, plus interest and lender fees. On your next payday, the lender will cash the check, ending your financial obligation.
If it sounds too good to be true, it probably is
When you need money now, a cash advance can be an enticing option. They are quick and applications are rarely refused. The real problem is that the fees and interest amounts can make these loans extremely difficult to pay back. What if it takes too much out of your next pay check, leaving you nothing for your regular expenses? What would you do?
A lot of people end up going back to their lenders to ask for extensions and more funds. In fact, payday lenders depend on you needing to come back time and again. It is a cycle that is hard to break once it has started.
What are my other options?
Thankfully, if you have a need for financial assistance, there are better options out there. Some alternatives include:
- Sticking to a budget
- Applying for a conventional loan
- Taking out a personal loan
- Asking friends or family for assistance
If these options do not work or simply do not do enough, bankruptcy or other legal debt relief options may be your best bet.
Get the help you really need
Cash advances sound great when you are in the middle of a financial meltdown. But, they rarely help the situation, instead they usually cause more harm.
Other forms of debt relief, bankruptcy included, have the ability to actually improve your economic state. If you would like to learn more and find out what options are available to you, an experienced bankruptcy attorney can help.