We have all been told of the need for constant and disciplined saving for future emergencies, though few rarely do. Unfortunately, emergencies happen and the need for emergency loans will be inevitable, will you be one of the lucky ones who can lend yourself the money from your savings rather than seeking the expensive rates of a cash advance loan?
Cash advance loans provide an important service, as cash advance lenders provide short term loans to people in advance of their paycheck in times of emergency. The reasons one would pursue such an expensive loan can vary, but they invariably have the same driving motivation, namely, “I need cash now, I need cash fast, and I have nowhere else to turn.”
Faced with such a situation and in need of emergency loans fast to address their pressing need, consumers are willing to put up with very high interest rates, up front loads for financing, and stiff repayment terms associated with cash advance loans. These emergency loans are not cheap by any sense of the word, but for some it is their only option when they need cash fast in a crunch.
The solution to avoid these expensive emergency loans and all the fees and costs associated with them is a simple one, savings. A disciplined approach to savings is often such a difficult principle to impart, as it can be so easy for us to explain away purchases with the I want it or need it now philosophy. Often an examination of one’s finances can reveal shocking details of how much spendable income is going towards financing of these emergency loans and unnecessaries.
Saving for emergencies is an essential part of proper personal finance management and cannot be overemphasized. Shield yourself from life’s unexpected happenings with proper emergency savings. Your peace of mind, your credit score, and your pocket book will thank you for your hard work.
I would like to try a little experiment if you would bear with me. Take note of the specific fees and costs involved in funding your next emergency loan. Then hold to a emergency savings plan, with the goal of 6 months of living expenses saved up in easily available money. Then to when the next need for unexpected emergency money arises, become the cash advance lender to yourself with your emergency savings. And pay yourself the equivalent financing charges and fees associated with your emergency loan to yourself as a reward.