Here are some major expenses that come with pregnancy.  You have to get a crib, a baby stroller, cloths and bottles just to start off. In short, you need some cash to get started. Here are a few options on where to get the money you need, and tips on how to pay less for it. 

How does a short-term loan work?

One of the first options for a quick cash advance is a high-rate, short-term loan.  Such loans are given by check cashers or finance companies, and go by a variety of names (payday loans, cash advance loans, check advance loans etc.) . In some cases this may be the only available source you have for a cash advance, but you should consider the fact that the terms of the loan are not very friendly.

The procedure
Usually, a borrower writes you a personal check payable for the amount you wish to borrow plus a fee, the fee is deducted from, or added to the overall amount. The fee is basically a sum you must pay either for every $100 you borrow (for example), or a percentage calculated for the overall amount. 

Make sure you get all the information specifying what exactly is the cost of the loans. This information must be disclosed by law!  Remember that cash loans are expensive; their advantage is in their availability not the conditions of the loan.    A cash advance loan secured by a personal check (such as a payday loan) is very costly.  Any delay in paying back the money increases the fee substantially. Let's say you write a personal check for $115 to borrow $100 for up to 14 days. If you want to extend the time given to payback the loan, you will have to pay the full fee all over again.  If it takes you two months instead of the two weeks given initially, you will have to pay a total sum of $60 for the $100 you borrowed!

If you can - try to avoid this kind of loan.  There are many different options for cash advance that won't bring to such costly consequences.  Credit unions, small loan companies and even credit card companies might provide a loan on better terms. The best option would probably be a cash advance on your pay check, if your boss is willing.

How to avoid the steep cost of a loan?

If you decide you must use a payday loan, borrow only as much as you can afford to pay with your next paycheck. Never borrow more than you are able to pay back with in the time limit given! 

Once you have taken the loan and you are late on payments, try to ask your creditors for more time and find out what they charge for this service. Ignoring or avoiding the problem will only make things worse. Make a realistic budget for your growing family, and calculate your monthly and daily expenditures.

Try to avoid unnecessary purchases.  It may seem unnecessary to watch every cent you spend, but the costs add up. Build some savings to avoid borrowing for emergencies, unexpected expenses or other items. If you think about all the unnecessary expenses that come with a loan, it becomes clear that putting money aside is a better option. It isn't that difficult to save a bit each month, even $20 a month will build up to a more substantial sum in time. Find out if you have, or can get, overdraft protection on your checking account. Overdraft protection can help protect you from further credit problems, so find out the terms of your account. 

Finally, you can turn to credit counseling service that can help you work out a debt repayment plan. There are non-profit groups in every state that offer credit guidance to consumers. These services are available at little or no cost.  They can give you the most informed help, since your particular situation will be what they work with. In conclusion, taking a cash loan isn't the best idea, but if you need one make sure you understand the cost and that you can keep within the terms set.  Managing a careful budget which allows you to put some money aside and makes you aware of how much you spend is the best solution.

No one said it would be easy to have a family, but apparently it's worth it!..

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