NASHVILLE, Tenn. (WTVF) — We're finally on the backside of the holiday season and it's time to get back on track financially. Maybe you overspent, or had unexpected bills come up over the holidays.
To make ends meet, some people turn to cash advance apps. But before you do, here's a buyer beware guide so you know exactly what you're getting into.
"Cash advance apps are ways to get short-term loans before your next payday, and it's a way to help bridge the gap," Sara Rathner with NerdWallet said.
There are benefits: you can get money quickly sometimes same day the fees aren't usually super high and are spelled out in advance and there's no credit check required.
"You want to be really cautious with these cashback apps because while the fees aren't very high, they still exist and it could be a more expensive way to access money compared to other ways of borrowing," Rathner said.
In terms of fees, a lot of these apps will have either a one-time startup fee or a monthly subscription that you have to pay for.
On top of that, there's the fee for borrowing the money itself. The quicker you need the cash, the higher that fee will likely be.
Anywhere from $0.99 up to just over $20 and then something odd...some of these apps have started asking for a tip. That is optional though so you can opt out.
If you don't want to do a cash advance app, Rathner says you could look into a credit card with a 0% interest promotion. Or if you really don't want to or can't take on new debt.
"If you are struggling to make ends meet, it could be worth some tough conversations with your loved ones to see if you can scale back holiday expectations," Rathner said.
The bottom line is that cash advances are good for quick money but they can lock you into a debt cycle that you just can't escape from. So borrower beware.
It's truly the small things that add up to a great day - and Warrick in Lebanon is having a big impact. His familiar face is becoming a staple in one part of the community and inspiring closer connection in the simplest way. Enjoy his warm personality! You may even feel inclined to wave to a stranger today, too.
-Rebecca Schleicher
