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Cash-advance reliance leaves borrower with $131,000 debt unable to save
A caller who earns $94,000 a year said he has had to use cash advances to make ends meet, limiting his ability to build even a $1,000 emergency fund.
Yahoo Finance recounted a Ramsey Show caller’s situation where high debt is preventing him from saving, despite an income of about $94,000 per year.
The caller described carrying roughly $131,000 in student loans, car loans, and credit card debt, saying it leaves him unable to save even $1,000 as a beginner emergency fund.
According to the account, he can pay monthly bills but has been relying on cash advances, which are short-term loans typically for small amounts ahead of a paycheck and often expected to be repaid within weeks or a month.
The story explains that cash advances can come from banks, credit cards, or third-party apps, and that borrowing via a credit card can add extra fees and interest that starts accruing immediately, while some apps may charge rush fees; the report also notes that cash-advance setups are similar to payday loans, which often come with very high average yearly APRs.