Have you ever been short of money? Undoubtedly you have needed financial assistance to pay for unexpected costs or emergencies. When every other option falls through, you can take out a small, cash advance loan. They can be considered high-risk loans – if you’re not smart about it. Because of the risks involved, here are four questions to ask before you consider getting a cash advance.
A cash advance NZ is a small personal loan that is provided by banking institutions and other money lending establishments in New Zealand. They each have set fees and repayment terms and can be a saving grace for people who need extra financial help. If you qualify for a cash advance loan, here are four questions to answer before diving in head first.
1. Can I Pay The Money Back In A Month?
Although different financial aid establishments have different policies, there is one repayment rule that they can all agree on. The only way to minimise high fees and interest rates is to repay your loan in one month, or sooner if you’re able. The longer you take to repay the cash advance, the more you’ll pay in interest.
2. Is There A Better Way To Get Financial Assistance?
Unfortunately, it isn’t easy to find extra finances where there aren’t any. Before taking on a cash advance, you are advised to consider all of the options available to you. This includes borrowing money from a family member or friend, where you can work out a favourable repayment plan that works out for the both of you.
3. Do I Really Need What I’m About To Buy?
Many people buy on impulse and need to keep to a strict budget to avoid buying what they don’t need or can’t afford. Cash advance loans should only be used in dire circumstances or as a solution in a one-off situation. If your car has broken down and you need to repair it urgently, that’s a good reason for taking out a cash advance loan. Concert tickets or a new TV is something that you can do without, so think carefully about why you need the advance.
4. Do I Need Help?
If you’re taking out a cash advance regularly, you probably need a financial makeover. Consider making some lifestyle changes, and enlisting a financial advisor to help you manage your money better.
When you’re in a tight spot and urgently need an injection of finances, cash advances can be a wise choice. It isn’t a wrong choice when you’re in financial trouble and need to make a payment urgently. Cash Relief can assist with all your questions about cash advances in New Zealand, so don’t hesitate; contact us today.