With the price of a new iPhone running upwards to $800, a cash advance online to help relieve the cost is just a bad decision. If you don’t have the money for an upgrade, you should be asking yourself, “Do I need it?” It is a status symbol and who doesn’t want to keep up with the Jones? The phone is 18% thinner and 20% lighter! People lined up hours before stores open wanting to be one of the first to have it.
Since an online cash advance is geared towards helping pay for needs, an iPhone is a bad excuse to get one. Maybe you do have the money to pay it back on the original due date. This makes using a direct cash advance a low cost option for quick cash. Maybe you can pay it back in two paychecks. The price is still fairly reasonable. The devil’s advocate viewpoint may differ. You know, the voice of your mother or conscience telling you that hundreds of dollars would be better off spent elsewhere.
You say you can afford it so why not get the latest and greatest?
* Do you carry high balances on your credit cards which could be paid down?
* Have you contributed your cap amount towards your retirement fund?
* Have I built up my savings to cover a few months’ worth of bills if something bad really happens?
* Is my job secure enough to last through the new phone’s contract?
* What happens in six to twelve months when the next new version comes out?
Spending beyond our means or on lifestyle instead of protecting present and future finances is keeping people unprepared for financial emergencies. Maybe this is why there has been an increase of quick loan applications for online cash advances.
There was a PEW Study report which found a large percentage of people choosing to use payday loans and direct cash advances to cover costs instead of making cuts in spending. A lender does not ask the reason for the loan, but will ask the reason why it is not paid. Falling behind on a low cost cash advance creates fast debt and may interfere with you credit if the loan is defaulted altogether.
The hype to keep up with the latest and greatest versions is definitely marketed well. To watch the news and see the excited people who stand in lines the night before or hear about the woes of those who just missed their chance when the store ran out before their turn. It isn’t just the iPhone which creates this mayhem. The latest versions of handheld or console games create such a buzz when people flock to spend hundreds of dollars per item.
It isn’t just about responsible lenders doing the right thing to protect people’s finances, but also the person’s responsibility to make good decisions with their income. Falling behind on a low cost cash advance when the application for it was done with the latest technology seems a bit ironic and hard to point a finger at the lender.