When you encounter financial issues between pay periods, figuring out how to pay your bills can be daunting. Luckily, paycheck advance institutions provide short-term loans to help you get by until your next check comes in. However, if you’re not careful, it’s easy to fall behind and sink into debt. To ensure you use an emergency loan wisely, ask yourself the four following questions before requesting a paycheck advance.
What to Ask Yourself Before Getting a Paycheck Advance
Is It an Emergency?
It’s critical to establish the difference between needing and wanting—though you may want a new television, you need to replace a broken water heater. If an emergency occurs and money is tight, a paycheck advance can be a lifesaver.
Can You Afford to Repay the Loan With Interest?
When you take out an emergency loan, remember to calculate the interest you’ll owe in addition to the principle. Most paycheck advance loans are due within a few weeks—and the more money you borrow, the more you’ll have to pay back in interest, too.
Are You Borrowing More Than You Need?
As with any loan, don’t borrow more than you need. Ask for an amount that will cover your emergency and avoid the temptation to get more. Also, try not to borrow the full amount of your upcoming paycheck—otherwise, that check will go to covering the costs of your cash advance loan, restarting the borrowing cycle.
What Happens If You Get Behind?
Negative reports on your credit history and additional fees are high prices to pay for relatively small loans. By making a habit of getting paycheck advances, you can go into debt just by trying to catch up. Treat a cash advance loan like a savings account—it’s for emergency use only!
When you encounter a financial crisis, the team at Paycheck Advance & Nebraska Check Cashers in Lincoln, NE, makes it easy to apply for short-term loans that can help get you back on your feet. For a quick emergency loan approval, apply online or call (402) 466-6226.