How to Avoid Renewing or Rolling Over Your Cash Advance

Cash advance payday loans are expensive, so it’s a good idea to make sure you can pay them back before you sign along the dotted line.

If you can’t make this agreed-upon due date, there’s an option to roll over your loan. This might sound like a great backup when things are tight. But not only do you have to pay a fee for the privilege, you’ll also accrue extra interest during the extension.

Since your cash advance already has high fees as a bad credit loan, you’ll want to avoid this at all costs. Here’s how:

Know Your Budget Before You Search for Loans

Before you take out a loan online, you should know how much money you can afford to borrow. 

Sit down with your budget to get a sense of your cash flow. Any cash you have left after paying off the essentials is what you have to put towards your loan payments, representing the upper limit of what you can afford when taking out cash advances.

Research Alternatives to Cash Advance Payday Loans

Many people take out a payday loan because they think it’s the only option available if they have bad credit. 

It’s true that bad credit will limit how many borrowing options you have. But you have more options than cash advance payday loans. Some online direct lenders provide installment loans for bad credit, too.

Installment loans for bad credit may have similar fees as payday loans, and you may find it just as easy to qualify. The key difference is the time you have to repay what you owe. 

Bad credit installment loans spread out your payments, so you don’t have to come up with everything at once. You may have several months to repay your loan, which may give your budget a little more breathing room.  

Cut Down on Unnecessary Spending

Normally, your spending plan should budget for fun. You need to splurge on things you enjoy that make life worth living. But you should put this “rule” on hold whenever you take out a cash advance. 

Trimming the fat from your budget during the term of your advance might make it easier to hit your upcoming due date and avoid rolling over.

You’d be surprised by how much cash you can free up by making some clever changes to your spending habits. 

Tips to Cut Unnecessary Expenses

• Cancel subscription and streaming services until you repay what you owe
• Switch to an online bank to avoid paying banking fees
• Stop getting takeout by following a meal plan
• Ban booze for the duration of your term to save money
• Make coffee at home if you splurge on Americanos and lattes

Tips to Limit Essential Expenses

• Embrace a plant-based diet rich in legumes to save on rising meat and dairy costs
• Switch to a cheaper insurance company if possible
• Reduce your energy consumption to reduce your utility bills
• Adjust your cell phone plan — switching to pay-per-use could save hundreds
• Carpool with colleagues or walk, if you live close enough to work

The Takeaway

A roll over charges you more money on an already expensive borrowing option. To save your money, research your alternatives and use your budget strategically. These tips will help you avoid a roll over.