3 Signs of Cash Advance Addiction

Addiction can be defined as “the state of being enslaved to a habit or practice.”  While this definition may seem a little over dramatic as it relates to cash advances, this article seeks to prove that it’s actually quite appropriate.  Cash advances are intended to provide short term funds for those who find themselves in an urgent situation that requires financial assistance. But like anything else, cash advances can be abused.  There are some unsavory lenders out there that do their best to take advantage of people by avoiding full disclosure of their terms in an effort to get their hooks into you. That is a problem.  There’s also a small group of consumers who find themselves growing attached to the easy access cash advances provide. Another problem. In the end, you have the power to take control of your situation. If you’re not sure if you or someone you love has become addicted to cash advances, here are 3 signs to look for:

1. Everytime you want to buy something you don’t have the money for, you get a cash advance. You may be addicted to cash advances if, while looking at a sale for LCD flat screen TV’s, you find yourself thinking, “If I borrow $500, I’ll only have to repay $587.50 in 2 weeks and that TV can come home with me tonight!”  Cash advances are not intended to be a magic pill for every financial situaion. If you find yourself in need of help because of a car repair or an unexpected bill, then cash advances are a viable solution that should be considered.  But you may have a problem if you turn to cash advances too often or when you are shopping for things that should be considered a luxury.

2. Your entire paycheck is spent on cash advance fees before you even receive it. Cash advances, or payday loans, are almost always setup to be repaid on your next pay date.  They are not intended to solve long term financial issues.  For these reasons, most payday loan companies have a guideline in place that does not allow approval of customers who have more than 2-3 cash advances out at one time.*  This rule is put in place to minimize risk to both the company and the customer. Very few people can afford to pay back more than 2-3 cash advances at a time. If you take out an excess number of payday loans and find yourself only paying the fees on them to either extend their due date or renew them, you may have a problem. Try cutting back and paying off one cash advance at a time to get yourself out of this bind and back on track.

3. You’ve got delinquent cash advances but you’re still trying to get more of them. Many good people have had trouble paying back their cash advances, especially during these difficult economic times.  If you fall behind on bills and either cannot pay your cash advance or your payment is returned, you payday loan is considered delinquent until it is paid back in full plus any accrued fees. You should never go out and get another cash advance to pay back the first one. This is called “Robbing Peter to pay Paul” and is not advisable.  Most companies do not allow the acceptance of applicants with delinquent cash advances.  If you find yourself in search of  a payday loan company that does, or those that will not pull your Teletrack report because you know you have several payday loan delinquencies that have been reported, you may have a problem. Take care of your delinquencies. Call the companies and make arrangements to make good on your promise to repay the money you borrowed.

This article is not intended to make light of addiction of any kind. I’m simply shining a light on a situation that some very good people have found themselves in. Cash advances and payday loans provide assistance to many people in their time of need. When used properly, they serve their purpose and they help people out of a variety of situations.   Please don’t abuse them. Use cash advances and payday loans responsibly.

* The number of cash advances and payday loans allowed per customer may depend on the state a customer resides in and the maximum loan amount allowed in that state.

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