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A fixed income is an income that does not change. A fixed income most often takes the form of a job that pays a salary. A salary is a form of payment to an employee that is paid on equal installments over the year. Therefore, if your salary is $50,000 a year, you will take home about $4,200 per month before taxes. Absent a raise in the future, you will always take home $4,200 per month. On the other hand, an hourly employee's paycheck may constantly change depending on the amount of hours that he/she works each week. This amount may change further is the job involves the collection of tips (such as a waiter/waitress, a casino dealer, delivery person, etc.) and thus, your take home pay may constantly change. These inconsistencies do not occur if you are on a fixed income.

Many people on a fixed income have a specific budget. This budget is usually carefully detailed and does not leave much room for additional expenses. As such, should a cash advance be taken, such a loan could cause a lot of financial problems based upon the budget in place. However, this is not always the case and it is possible to take a cash advance loan without seriously disrupting your budget.

A cash advance is the equivalent of a cash loan. The most common way that people take cash advances is by doing so through their credit cards. A cash advance generally carries a higher interest rate than does a regular credit card charge and thus, you will pay more for interest. Additionally, many credit cards have the policy that your regular balance must first be paid before your cash advance balance can be paid. As such, none of your monthly payments will go towards your cash advance balance until your regular balance is paid in full. Therefore, that higher interest rate on your cash advance balance keeps accruing and increasing the cash advance balance. Thus, if you take a cash advance from a credit card, make sure that you have little or no outstanding balance on the card so that you can pay off your cash advance as soon as possible.

If you are on a budget based upon a fixed income, a cash advance may be difficult on your financial situation. However, this does not mean that it is impossible to with which to cope. If your budget includes a portion that is to go to savings or is reserved as "expendable cash" you should use this money instead of taking a loan. If, however, your budget does not include such a category, you may have to cut some costs in order to be able to pay off the cash advance loan that you took.

The point is, analyze your situation before taking a cash advance loan on a fixed income. Make sure that you really have no other option except to take loan in order to afford the thing it is that you need. Once the loan is taken, cut costs or slightly alter your budget in order to free up the money necessary to pay off the loan.

Learn more about this author, Marco Angioni II.
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