Perhaps you are thinking, “Why would having limited cash on hand be an advantage over having a credit card with a higher purchase limit?” I don’t know about you but that same positive note (having “unlimited” purchasing power) can be your downfall. Having a credit card on hand can lull you into a false sense of security. It can make you think that you can just make these purchases and worry about the paying part later on. Before you know it, you are up to your neck in debt.
With a supply of debt settlement on hand – albeit limited – you can control your spending and budget your expenses more wisely. Take a look at these two scenarios. Let us say that you go away on a short weekend break to get away from the city. In the first scenario, you decide to use your credit card. You use it to pay for your hotel. You use it for your petrol. You use it for food. You use it for other purchases – souvenirs, tours, and the like. You do not immediately feel the weight of your purchases. Yet when the credit card bill arrives, you are astounded at how much you spent! In the second scenario, you decide to use cash from a cash advance loan. You know exactly how much you can afford to spend so you plan your expenses carefully. You book an affordable hotel. You look around for affordable meals. You do not buy trinkets that you do not need.