Let’s face it, times are tough and we all come across scenarios when we need emergency cash. This is often true in Nevada where we’ve experienced a boom and bust economy over the past decade. There are years when jobs are plentiful and you never think you’ll need a payday loan. Other times, like during the recession, we all went through a time when it was hard to find a job and cash was tight until the next payday. As things stand now, the economy in Las Vegas is on the upswing. Open up the newspaper or check online hiring sites and you’ll see that jobs are plentiful in Nevada. As of a few months ago the unemployment rate in Las Vegas and Henderson Nevada was 4.5%. This number is down sharply from a few years ago. Even with that low jobless number we can’t guarantee that things will stay the same for an indefinite period. There are still many people who live paycheck to paycheck and internet trend records show a high number of people still search for online loans in Nevada. Many Americans have taken unusual, drastic measures to get their bills paid. One of the most expensive is using credit card cash advances. Even for a bill as important as your home mortgage payment, a cash advance is slippery slope. Unless you intend to pay it back immediately it can cost you a lot in monthly interest. Like a Las Vegas payday loan, the daily APR with these advances are high and should only be used for legitimate emergencies. Most Nevada residents are ill-equipped to handle a short term cash crunch. Especially if they are already in financial distress.
Making a mortgage payment is everyone’s top priority when factoring in a monthly budget. Please consider the following information carefully before using a payday loan to pay off your credit card. Read your credit card disclosures and treat this advance like a high dollar payday loan. For most cards, cash advances incur a “transaction fee” for merely taking the online advance. These fees are as high as 5% of the amount of the online advance. You need to calculate the total amount plus the fee to make sure you have an available balance on your card. Even if your advance is within your limit, if the fee puts you over, your loan can be declined. If it is approved, you can be charged an over limit fee. On most common credit cards, going over the established limit incurs a $39 fee. Most people view these fees as high, but you need to consider the alternative. Many companies in Las Vegas will gladly give you an online payday loan that comes with a high finance rate. Consider different lending options before moving forward with either service.
The second item to check out is the interest rate. Don’t assume things will change if you have a reasonable interest rate on purchases. You won’t be given the same interest rate on cash advances. Consider the annual percentage rate from payday loans and expect to see the same percentage. A quick glance at some credit card fees found cash advance interest rates of nearly 25%. That’s a hefty premium to be paying for any online loan. Also, be aware that credit cards will give you a grace period on purchases. Most companies enforce this if you pay the credit card bill in full each month. Online advances come with interest and the amount increases as each day goes by. Most payday loans in Las Vegas are provided by online companies and local retail storefronts. Most will be due in a few weeks while a typical payday advance can be paid back over a period of months. Having said all that, some of you still feel a Las Vegas payday loan is your only option. Your fees are greater than your income, and you’ve got to keep your head above water until your paycheck comes in.
Consider the fees if you have to resort to an online cash advance
Let’s assume you have some cash coming in, but not enough to pay all the bills. In this case, pay everything you can pay on a credit card. Don’t consider an online loan as those are for high dollar emergency purchase. This may be a larger list than you might think. Most people are aware that grocery stores and the big box stores will take plastic for all your basic needs. We know there are offices in Las Vegas, but also look at stores in Reno and Henderson. Have you thought about other living expenses, like your utilities and insurance payments? In regard to utility payments, be sure to check with the collection agency. You may get a fee if you are paying to the utility company, in person or online. NV Energy provides most of the power to Southern Nevada. Contact them for more info. If you pay at an authorized payment center, like your local drug store, you may be charged a convenience charge – which is anything but convenient. You can also make payments at check cashing and installment loan locations. There are many in Las Vegas that accept drop off payments.
Swipe your card at the gas pump as well. The 3 or 4 cents more per gallon you may pay if your station offers a cash discount will be offset by saving those credit card transaction and higher interest fees. Save as much of your cash for those items that you can only pay with cash – like your mortgage or rent payment. Just make sure you keep enough money in reserve to pay the minimums on all your credit card payments. Late or missed payments will incur hefty fees as well. By using this strategy you will eliminate the cash advance transaction fee and keep your interest charges to the lower purchases rate. Unlike a payday loan, the transaction fees and interest charges aren’t always locked in with an online card advance.
If you still do not have enough cash to pay your mortgage or rent payment, you may have to resort to taking a cash advance or online loan. Take only what is necessary and pay it off as quickly as possible. Don’t go with more than what you need. For example you can borrow thousands with a Nevada based installment loan company. But that’s not necessary if you need a few hundred dollars. Also, be mindful of where you get your online advance. Many ATMs charge an extra charge if you want an early advance on your paycheck. Retrieving your advance from a bank teller or with a cash advance “check” will only incur the transaction fee and higher interest rate charges. Note: One of the benefits of the Credit CARD Act is that credit cards companies will have to apply all payments over the monthly minimum payment. This applies to credit with the highest interest rate. It all comes down to being responsible. As a Nevada resident you have many resources available to help you through any time of need. Don’t hesitate to take an online advance on your credit card, but only consider a payday loan if you have no other option.