While cash advance loans may have a bad reputation, there are times when it makes complete sense to take one. A good example of this is if you realize you made a mistake in your checking account, and the result of your mistake will be bounced checks. In this situation, taking a cash advance could help you save a lot of money and headaches. Here are three things to consider about this situation and using a cash advance to get you through.

How Overdrafts Occur

Managing a checkbook takes time and accuracy, and it can be easy to end up with an overdraft charge if you make a simple mistake. Anytime you spend more money than what is in your account, you can end up overdrawing your account. Unfortunately, overdraft fees can be extremely expensive, which is why you should try to avoid overdrawing your account. Accidents happen, though, and you might realize that your account is about to overdraw before it actually does.

In many cases, banks run credits before debits when balancing accounts during the day. This means that all your deposits will get added to your account before your checks and withdrawals are taken out. If you look up your account balance and see that it is currently negative, you might have until the end of the day to make a deposit to avoid paying overdraft charges.

If this is the case, you will need to find a way to get some cash fast if you want to avoid paying the overdraft fees.

The Cost of Overdrafts

Finding a way to cover the negative balance in your account is important, because overdraft fees are very expensive. The average overdraft fee is $27, but your bank might charge even more than that.

On top of that, this fee is something that banks charge per item. In other words, if you made a simple error in your checkbook that caused three different checks to bounce, you will most likely receive three overdraft fees. At $27 per transaction, you could end up owing $81 just for the mistake you made.

You should also realize that most banks will charge an additional fee each day when an account is overdrawn. This fee is usually between $5 to $10, and there is no limit to how many days the bank will charge this fee.

Another point to remember is that if your account is overdrawn, you will have to repay that money too. In all, you might owe the bank hundreds of dollars from a simple calculation error in your checkbook.

There is also a chance that the person you wrote a check to could charge you a fee if the check was returned. This would only make the situation worse, because you would owe even more money.

Why Cash Advance Can Help

Paying hundreds of dollars of fees to the bank might cause big problems for your budget, but there is really no way to get around this once the bank charges the fees. If you can avoid all the fees, you would be better off, and this is one of those situations when a cash advance can actually be a great idea.

If you apply for a cash advance loan, you will often be able to get the money within an hour or less. By doing this, you could deposit the money from this loan into your checkbook, and this would help you avoid all the fees associated with overdrawing an account.

Cash advance loans are not necessarily cheap, but in this situation a cash advance loan would be cheaper than the alternative. If you would like to learn more about how cash advance loans can help you through difficult financial situations, contact a lender through resources like http://www.usacashservices.com.