Wednesday, December 5, 2012

Is Your Cash Advance A Crutch Or A Cure?

Financial gurus know that the importance of financial health is second only to the importance of one's physical health. Like physical health, financial health increases one's quality of life, making it easier to enjoy all that life has to offer. However, even the most financially savvy are likely to face the occasional fiscal accident. When you break a metaphorical financial leg, do you seek out a crutch or a cure? Do you withdraw a cash advance from a credit card with short term relief in mind, or do you consider your cash advance as a long term investment in bettering your financial future?


Depending on the mindset of the borrower and the purpose for the loan, a cash advance can serve as either a crutch or a cure; in fact, it can serve as both--a temporary crutch that leads to an ultimate cure. It is up to the borrower to ensure that the loan is used with long term success in mind.


When an individual breaks a leg, a crutch is often provided to help the individual get around while going through the healing process. The crutch, then, is a tool that can be used to secure the long term goal of regaining strength in one's broken leg. However, if the crutch user overly relies on the crutch, neglecting physical therapy and doctor orders to put weight on the broken limb to help the rebuilding process, then the muscles in the leg will atrophy, and the wound may never fully heal.


The same principle applies to cash advances. Surely, a cash advance can help an individual in an accident. Additionally, it can be used with long term financial rehabilitation in mind, as it provides immediate relief from the burden of bills while helping an individual avoid unnecessary credit damage. However, if the advance is overly relied on and/or neglected--if the borrower neglects to pay back the loan in full and on time and enters a cycle of borrowing more advances to cover the costs of the first debt--it can cause long term financial damage. Such damage often leads to bankruptcy, which sticks with an individual for a long time, making the financial healing process take a lot longer than it needs to.


If a cash advance is used as a temporary crutch that can lead to a cure, then the advance can be an incredibly useful tool for the borrower. It is better to borrow a little in the present to secure one's financial future. For instance, if a small advance of $100 dollars is borrowed to cover a car tune up that will keep one's car running, then the cash advance is worth it--it will ensure that the car owner will not have to pay a far bigger price later down the road. However, if the advance is left to fester, acquiring interest and fees, then the advance is more costly than it is worth. The borrower must be sure to use the advance with long term financial growth and stability in mind; as such, the borrower is responsible to follow doctor--or lender--orders and stick to the contract of such advances, taking time to research interest rates and fees to avoid future financial harm. Failing to do so is bound to make the crutch more of a burden than an aid.