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Here’s why applying for cash loans is a better option

Money is a sober requirement for everyone in this world. Surely the need for money is increasing day by day with the rise of our demand. There are various ways to earn money but more ways to borrow it. The banks and the financial institutions, as well as personal lenders, are eager to end their money for a term with higher interest rates. Many people are skeptical about borrowing a loan from the financial institutions in the fear of large interest rates levied on the principal amount. Well, it is true that the interest rates are higher but you are also getting the cash loans as instantaneously as possible. So, we have done a literature survey on the subject and found out that borrowing is still a better option. Through this article, we intend to make you acquire knowledge about the benefits, how you can apply for cash loans, and the repayment process.

Cash advance overview

A cash loan or advance is a defined system that allows you to make use of your credit cards to withdraw a short-term loan at a bank or an ATM. Every bank is now providing the account holders with this facility and this sort of loan is gaining high momentum in the present day. The features are quite different from that of withdrawal from your account. When you withdraw cash from your account, you are debiting from your account balance which does not repayment as it is your money. However, cash loans are different. When you are using a credit card, the bank is assuring you with some money which needs to be paid back within a term. Many might find the idea deluding as the conventional card system only allowed digital payments at Point-of-Sale. But, it is very much true that you can now take out a sum of money from ATM and repay it with interests according to bank policy.

Benefits

There are many benefits associated with it but one must be concerned about the over usage of such facility as it may result in you paying back almost as double than you withdrew. If you are unable to repay, your credit score will fall down which will affect your portfolio during future commitments. Anyways, we will be discussing the concern later on.

The first and foremost benefit of having cash loans facilities is that you can withdraw cash. Liquid money is always appreciated. There may be times when you run out of money in your pocket and confront with cash-only situations. This is most common when you are purchasing something from a street vendor. You will need paper money and your salary hasn’t yet been credited to your account. Now, you cannot ask for money from strangers and you cannot call your known ones to retrieve you from that situation. But, if you hold on to a credit card, you can definitely have the facility of borrowing cash from the bank itself and get paper money from any ATM. However, the banks are also concerned about the uses. So, they most likely cap the cash withdrawal to 8-10% of the total ceiling limit.

Cash loans are expensive deals

It is easy and convenient to withdraw cash from ATMs as a cash loan but analysts find it one of the costliest ways due to the following expenses lurking behind cash loans.

  • Cash Advance fees are imposed by the issuer of your card. It can either be a bank or any financial institution. According to their terms and policies, some cards pay a flat fee per cash advance whereas some charge variable fees. The variable fees constitute the percentage of the amount that is advanced. Some banks also prefer to impose a hybrid system where a percentage of minimum amounts are levied.
  • An ATM or bank fee is another component of the expense that has to be borne by the customer. It is imposed by the institutions which look after the transaction and handle it.
  • The interests on credit card cash advances are often higher than the rates on purchases which make it difficult for the bearer to actually repay. Since there is no grace period, the interest starts accruing immediately after the withdrawal.

So, having cash loans look to be simple, easy, and convenient but the charges associated with them are humongous leading you to eventually burn a large hole in your pocket. Moreover, it is advisable for you to withdraw cash advances from ATMs only when you are in a severe cash crunch and you know you can pay the debt with your stable income after it is credited.

Teaching your child to save money when still young and helping them to keep on saving when older

One of the most important things you can teach your child is the financial skills they will need to navigate them through life.  Money might not be the most important thing in your life, but if you do not have it, it can make living very difficult.

Schools do not teach money skills, you have to.  It might be that you were not taught it when young, also, but, you learned through trial and error.  No need for your child to do the trial and error, too.  When children are small they like to save in a piggy bank, money box, glass jar, etc.  They can keep on doing that, using the idea behind the saving, and apply it to their older years, naturally in more adult ways.

Financial Lessons that you can learn your Child:

  1. You might have to wait before buying something you want; is a very difficult concept to grasp. Even for older people.  If kids can learn this ability, saving to buy something you want, it can also predict how successful they will be as grown-ups.
  2. Set up three glass jars, labelled, “Saving,” “Sharing,” and “Spending”; when your child is given money, for birthdays, doing chores, or as pocket money, help them to divide their earnings, equally, between the jars. The saving jar should be kept for the expensive items they want to buy, the sharing jar can be used to help a good cause or helping a friend in need, and the spending one should then be used for buying smaller things, like a candy bar or small plaything.
  3. Learn your child to set goals; for instance, when they want to buy a bigger toy that is more expensive. For starters help them to begin with a not too expensive goal.  You can also help them reaching that goal through ideas to help them create opportunities to have something more to save.

As a parent, you will have the greatest influence on your child’s behaviour towards their finances.  The money ball is now in your hands to help raise a generation with better financial habits and the knowledge to keep those habits through their lifetime.

Fun Ways to Save for that new Carpet for the Living Room or for That End of Year Family Holiday

You can start your holiday fun before the holiday’s starts.  Including the whole family, you can make the saving for the holiday, a family matter, and create fun ways to achieve those savings.  You can also use the same fun methods to save for other expenses.  But start with the holiday that everybody will enjoy.

Ways to include the whole family for saving for the Holidays, and maybe an extra thing or two:

Stop Spending Money on Things you do not need right now; start out with a two-month time limit.  Make a list with everybody’s name on it and the things they mostly spend money on.  You still need to pay your bills and take care of your household expenses, and even though you think there will not be anything left, you will be surprised.  Start a savings account, named “Our Holidays” and put all the extras in this account.

Start Recycling; there are always old stuff in our houses like old electronics, old cell phones, and there are companies running rewards programs to promote recycling.  You can use these rewards in many ways and you will also do your small bit to protect the environment.

Save all your Credit Card and other types of Reward Card Points; different cards will give different types of rewards which will enable you to spend it on different kind of things.

Create a Mystery Jar Challenge; everyone in the family gets a covered jar.  Every small change you have goes into the jar.  A lot like the Piggy Bank of a small child.  At the end of the year, before the start of the holiday, choose a date, all the jars are opened and the family member whose jar yields the most can choose an activity to be done with the money during the holidays.

Finding Additional Ways to Save or Earn more money; children can do little chores for the elderly neighbour and the older kids can find things, like mowing the lawn, or walking the dog, for a neighbour that is out of town.  Selling the craft you create with your hobby can also ensure a penny or two.  You can decide beforehand what you are willing to donate towards the Holidays and then find ways to earn your donations.

All of these saving options can also be applied to saving towards the more expensive things you need or want to buy.

Surviving the Loss of Job late in life or an Unplanned Early Retirement

Most people expect to work until their retirement age.  Or, at least, hope to have a choice in making the decision themselves that it is time for retirement, and that they can afford an earlier retirement.  But, more and more, people find themselves without a job at an age, 5, 6, 7, years before retirement, without a positive outlook in finding another one.

There are lots of reasons this can be happening to someone, none of which will ensure that if you do find another job, you will be set until retirement age.  Another discomforting fact is that you lost your job when you were supposed to be in the peak earning years, finalising a comfortable retirement.  It rarely happens that you will be able to earn as much if you do secure a new job until retirement age.

5 Ways to Help you cope with Unplanned Early Retirement and Late in Life Job Loss:

  1. Work Part-time or consider Consulting work: This way you might be able to continue working in the field you know.  You can also pursue new interests.
  2. Take that job with less status and a lower pay-grade: It will be difficult to find a job that will match the job you had before.  You cannot expect to start off, where you were let off, in terms of salary and benefits.  Adjusting your expectation can help a lot when you look at new options.
  3. Reduce your expenses: This could mean that you might need to sell your house, relocate and tighten your monthly expenses.
  4. Remember that you have Unemployment Benefits: There is no shame in using those benefits. You paid for it every working month and should use it, as such.  There might be other benefits that you could be eligible for, for instance, food stamps, disability benefits and more.  You can do a bit of research, to help you find all available help.
  5. Stay in contact with your professional work related networks: Staying in contact will ensure that you know of new possibilities for work opportunities.  Knowing people can bring more opportunities, and open new doors.

You also have the option of Social Security which will be your saviour against a poor, struggling, retirement.  Do your research to find the best way and age to get the best out of your Social Security benefits.