Long-term, Short-term: Retirement and Payday Advance Loans
All financial advice should come with an asterisk. When you read or hear that “now is the time to invest in this” or “here is how much you should be saving every month,” understand that there is nothing wrong with that advice. But you will very rarely hear those same investment gurus talk about the car repair or month of emergencies that might instead send you to find a payday advance loan. This is because, sometimes, the best plans run up against the worst circumstances.
The asterisk is about real life. A way to borrow cash in an emergency really is a stress point safety release, that thing you keep on reserve for moments when nasty circumstances make it impossible to do the thing you intended.
Which is why everyone should think on two levels: long-term and short-term.
The perception of payday loans is a little dicey and a lot unfair. So allow us to dissect what paycheck cash advances are and how they are a short-term tactic that fits into a long-term retirement plan:
• Meant to cover emergencies – With a paycheck loan, you are able to get money from your next paycheck early. This means that a car breakdown can be repaired immediately, not make you wait for the money until your next payday (and help you keep your job!).
• Help avoid late payments and overdrafts – With access to extra cash in a payday loan, you can keep your credit score intact because there will be fewer bank overdrafts or bounced checks.
• Easy to access at a moment’s notice – They are called easy payday loans because these payday advances are available online. In the past you needed to go to a retail store and spend hours doing it. Now, it takes about five minutes to apply on a paycheck cash advance website.
Of course borrowing money seems at odds with saving money – until you read the asterisk where you learn that short-term fixes help build a long-term outcome.
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