Wednesday, October 17, 2012

Unfit Finances Will Overuse Cash Advance Loans

Did you plan to have your debt amount rise up over your yearly income? Was it in your mind to max out all the credit cards? Do you use online cash advance loans just because they are there? If you have any type of desire to stay financially fit, you would have answered no to all of these questions.

Most often, we don't plan financial doom. There is a sense of belief that the money will be repaid at some point in time. When? That's the sticky part, especially when it comes to long-term credit opportunities. The short-term cash advance money is a downright pest when it comes to the payoff. The loan amount plus fees is due in just 2 weeks. When it is not paid off, you can expect the direct lender to be looking for a payment every two weeks thereafter until it does get paid. The loan turns extremely pricey at that point. Did you plan on having your short-term loan ruin your finances? If you keep this type of loan out for a length of time, be aware, it will eat away at your income.

If you did want to sabotage your income, it wouldn't take a lot of effort. Here is a mindset to make your finances unfit.

*Don't worry about how much is charged on credit cards. If you pay the amount down, spend the credit again. Fun times!

*No worries about how many cash advances you have out at once. Eventually they will be repaid.

*Due dates are nothing but a number on a calendar. The creditors will get their money…eventually.

*The Jones have one, so should I.

*I can't wait for the next upgrade to come out!

Let's be honest, how many of you have experienced the pang one gets when a friend or family member makes a purchase that you long to do yourself? Have you ever ignored a due date in order to spend the money elsewhere?

It sounds absurd, but there are people who have poor spending habits, don't care about their credit or don't realize how poor choices affect their financial outlook.

In order to become financially fit we need to take an income fitness test. Add up all the reoccurring monthly costs and subtract it from income. Take a closer look at the money going out. How much of it is spent in fees and/or interest payments? Exercise your way to become debt free.

A financially fit mindset:

*Credit card balances should be less than 30% of the actual limit.

*Make ALL payments on-time.

*Limit cash advance reliance.

*Budget all costs.

*Evaluate budgeted categories often.

The news articles and talk shows discuss consumer debt weekly if not daily. Debt is out there. The good thing is that there are many ways to get help. If you do have a shopping problem or don't understand how to start a budget for yourself, you can get free credit counseling. Ask a good friend or family member to help monitor you on shopping trips. Just because your financial status is not feeling very fit, it shouldn't stop you from working it out to build a stronger future.

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