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Not long ago I was talking with a friend and our conversation drifted to personal finance. He is of the opinion that there is a fine line - or eight week window for many people whereby if they are unexpectedly without income their financial framework collapses. Although I had not thought of it in those particular terms I knew from personal experience just how possible that would be - particularly if there is no savings to fall back on.

We all find ourselves at one time or another wondering how this could have happened to us. Simply put - at times we all lose sight of the importance of following our financial game plan. There are as many reasons for stumbling as there are people and we are each unique in the fact that we have our own set of expectations and our own action/reaction to circumstances.

A friend of mine supplements her social security income with two part-time jobs. As a single parent she has tried very hard to create a workable budget. In the space of a few weeks her careful planning fell apart. This is what happened.

Car repair cost $250 for radiator.

One job cut back her hours by 3/4.

Second job had seasonal issues which cut her hours by 3/4.

When the car needed repair she paid the $250 bill using the money budgeted for groceries, figuring she would make it up with income from her part-time work.

At about the same time both jobs for one reason or another resulted in an $800 decrease in her part-time income. My friend had counted on the $800 every month to pay credit card debt and utilities. So what we have here is no grocery money (went to radiator repair), no credit card payment money, and no money to pay the utilities this month. In the end it took her almost six months to recover from three unexpected events.

It could have been less painful with a savings account. Usually the financial experts and credit counselors recommend saving at least two months equivalent to begin with and follow that with saving 20% of your gross income every month. If my friend had her $1,600 cushion in the bank (or under her mattress) a portion of the savings could have been used to compensate for the shortfall. If she had spent $1,000 of her savings to pay for credit card debt, utilities and car repair - she would have saved late and over limit fees, utility cut-off and struggling to put food on the table for her family. In lieu of a savings account to bail her out of this jam - she could have applied for a cash advance.

What can you do if you find yourself over a barrel and approaching the falls? When this happens to most of us it’s a matter of needing the funds yesterday - or last week - not next month. Here are some of the most obvious sources for a short-term influx of cash. They are listed in no particular order as each of your situations will differ as do the possible temporary solutions.

Ask family and friends. While your family members and friends may be experiencing their own problems they may be able to come up with $50 each. Added together that may help you through the immediate future. It’s easier to ask somebody you love to part with $50 than $300.

Part-time or seasonal work. Consider working at the Mall during the holiday season or typing during your off-hours for a local attorney. What about the seasonal stores (Christmas, Halloween, etc.), small motels or dollar store? You don’t have to commit to every day or night or even each weekend. The extra money will really help you out of a pinch.

Personal loan. This might be a bit more difficult to obtain especially if your family has been struggling and your credit is somewhat tarnished. Swallow your pride and ask where you bank. You aren’t the only person to have these things happen and the bank may have a product that would ease the pain of recovery.

Payday Advance: There are tons of companies out there that are ready to loan you as much as $1,500 overnight. This might be your best option but, keep in mind the finance charges can be high if you stretch the loan over time. For a short-term quick fix this is an attractive option, especially if you will have the funds to repay within 30 days.

I have personally experienced each of the methods listed to obtain cash - the quickest and least embarassing by far, was completing the simple application for a payday loan.

One of the best habits you can develop when you are young is to save part of every paycheck or allowance. Have a simple savings account and make deposits to it regularly. There is almost nothing that will give you such peace of mind as knowing there is a cushion to fall back on when the unexpected occur.

Joanne Robbins has published a wide variety of articles off-line. Robbins current project is slated for December 2006, http://www.boomer-gear.com

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The availability and easy access to a cash advance facility may create a dependency for some individuals. Becoming addicted to cash advance loans may create a problem for most individuals who would rely on the available funds from a cash advance source instead of exhausting his efforts beforehand. Considering that they are as easy to acquire and the release is as faster as they are applied to, people may have a tendency to abuse this resource and acquire loans even when the need does not justify making out one. If used correctly, they are actually handy and helpful when plagued with a temporary financial bind. You can easily borrow small amounts of money and then pay it back on your payday. However, when you the dependency on a loan company are regular, one becomes addicted to it.

Psychologically, it is very difficult to break an addiction. One gets a certain kind of satisfaction from the availment of the addictive element. One may forego the understanding of its capacity to sink the borrower into a deeper financial trouble in the long run. When one is intent on breaking free from this certain type of addiction, one only need to understand that credit companies aim to make a profit out of its borrowers. While the borrower is keen on repaying his debt while burning his energy at work, the credit company makes off with the fruits of ones toil and hard work.

Managing your funds and resources would hinder your from thinking twice on making out unnecessary loans. One needs to summarize the equivalent amount that the creditors all make out as a profit from its borrower, the interest rate and the total amount of money paid out to them might be enough to curb out a desire to get a loan.

As soon as you find out that you can manage without the cash advance loans, then you will feel better about your finances and know that you can make do with your needs based on your earnings. It is quite easy to get hooked on cash advance loans, but if one studies his budgetary needs, the financial future might justify why one doesn’t actually need cash advance.

Don’t Apply For Cash Advance Until You Read My “Must-Read” Articles To Avoid Future Regrets! www.CashAdvanceCrib.com

This article is written by Rick Crawford. 2 Year Online Internet Researcher And Webmaster of CashAdvanceCrib.com

Original Article Location: Breaking Cash Advance Addiction And Learng How To Use It Properly

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