More and more of us are spending too much and saving too little. There are now loads of ways for people to run short on money month-to-month. Whether you have a family household to look after or you live in your own place, when money is tight, a fast cash loan could be your best bet to get you to your next payday.
There are loads of ways you can access money instantly. You can take out a short-term loan from Cigno, borrow some money from a friend, or even ask for a cash advance from work. However you get the money, there are certain things you should never do with a cash loan, and we’re going to point them out nice and clearly in this article. Here we go:
Gambling with borrowed cash
Dodge this at all costs. It doesn’t matter where you get the money, gambling with borrowed funds is always a bad move. There are loads of sources out there shouting out about all kinds of get rich quick concepts that revolve around gambling. You should only ever gamble with your own money and amounts that you can afford to lose. Losing with someone else’s money just makes the loss even greater.
If you want to proactively make yourself a larger income, there are loads of more sensible ways that people should aim to make extra money on the side that come with far less risk.
Buying luxury consumables with borrowed cash
Whether it’s a wild shopping spree for items you don’t need or getting this years holiday booked in, borrowing cash to make luxury purchases that don’t hold value isn’t a good idea at all. Saving on groceries is one of the best ways most households can cut large amounts from their monthly expenditure. You should only really be spending disposable income on pleasure purchases. Use credit cards, payday loans or cash loans from friends to pay for expensive luxury buys and you risk throwing yourself into more debt than you can afford to handle.
Travel with the entire amount in hand
This is a huge security issue. At Cigno Loans, we pay our payday loans straight to your account. This allows you to draw out only what you need or pay for purchases with your debit card. Travelling with large sums of cash is always a dangerous thing to do especially if you plan on making your way through a series of public places. Do yourself a huge favour and make sure you borrow cash via electronic channels.
Even if you are taking your cash loan from a relative or associate, it’s always best to have them transfer the money to your account online. As soon as the cash is in your hands, it’s your responsibility. A theft of your online bank account can be traced and documented. A theft of cash from your hands is much harder to prove.
Invest in ventures or schemes
Doing business with short-term finance is far from clever. Whenever you take a cash loan you should always be upfront and honest regarding your intentions with the money. At Cigno, we always advise borrowers to take as little as they can. With our loans, you can specify the exact amount you need so that you only take what you absolutely require to cover your urgent costs.
Take too much, and you risk landing higher repayment charges than you can realistically afford to pay back without any issues. Investments of any kind are not all that different to gambling. They don’t always go according to plan and could end up costing you instead of making you money.
The only real reason to borrow a cash advance is to cover costs that are essential. Repairs to your plumbing, fridge or car, food for the month, and travel expense are all examples of acceptable emergency expenses.
Those are the main things you shouldn’t be doing with a cash loan. If any of these pursuits is in line with what you have in mind, it would be best to save rather than compile the risk by using a short-term cash loan to fund them.[Tweet “4 Things You Should Never Do With A Cash Loan”]
Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.