With the decrease in jobs and a bad economy, needing extra money to get by is a common phenomenon in today’s working environment. Although most people will agree with this assessment, they don’t always agree on the best solution. To stay out of trouble, you must understand the plus and minus points of this service.

Just as credit card usage can be destructive, using a payroll cash advance to get by when your money is already tight can create a challenging environment when misused.

A payroll cash advance should be used only when emergencies demand it. Sage advice, and relatively easy to follow if you don’t muddy the proverbial thought process. Unfortunately, many people aren’t as careful as they should be. Just as many would use their credit cards, there are the usual suspects who like to flex their ego muscle and get the loan just to pad their pockets, albeit for a short period of time. The money usually ends up being used for non-essential things.

This action, by itself, might not be a bad thing. Hey, if you’ve got money to spare, why not pay back $30 or more extra for every $100 you borrow? But what if you’re not able to pay back the payroll cash advance with your next paycheck because of insufficient funds? Even worse, if you do pay it, what if you need other payroll cash advance to help you make it through the coming month?

It becomes a vicious, borrowing cycle! Loan after loan after loan, and suddenly you’re heading down the road towards financial disaster, if it hasn’t already happened.

What can you do to prevent payroll cash advance trouble?

First thing, you should understand that paycheck loans are not an extension of your salary. They are not to be used for wants, only needs. They’re purpose is not for entertainment or non-essential expenses. Only for things that you cannot do without. Emergencies, bills, late fees that will cost you more –in the long run– if you don’t pay them now.

Second thing, commit to repaying the payroll cash advance as required, on time, with the next week’s or month’s paycheck.

Third, when you apply for a payroll cash advance be sure to get the best deal in terms of interest rates and repayment conditions. Don’t just grab the first loan offered to you. Do some research. Find a lender running a special for first time borrowers. Make sure you’re a first time borrower for that lender. If not, look elsewhere.

Alternatives To A Payroll Cash Advance

You may not have this option, but it’s always best to exhaust all other possible scenarios “before” you take the plunge and secure a payroll cash advance. Ask a friend, or a relative if you can borrow the money. Or perhaps a co-worker will lend you the money with decent terms (better than a payday lender would offer). Remembering now, that you only need this money for an emergency. Asking for a loan when a crisis is on the line makes it easier to ask, no matter how embarrassing it may be. Just make certain you repay the loan on time because nothing sours a good relationship faster than a financial issue.

And even if you don’t have a friend, or relative, or co-worker to ask for a loan… using the same principles when you borrow from an online payday loan lender should allow you to have a reliable cash resource if you need to borrow money more than once.