A: Ideally, we would all have emergency savings available for situations like this. However, unexpected expenses happen, and some options are considerably better than others.

Here’s how I generally view these services:

• Earned Wage Access (EWA) services — usually the least risky option.
These services allow you to access wages you’ve already earned before payday. Because you’re accessing earned income rather than taking out a traditional loan, costs are often lower than other alternatives. The main downside is that your next paycheck will be smaller.

• Cash advance apps — use with caution.
These apps typically provide small advances that are repaid from your next paycheck. While the costs may appear modest, frequent use can create a cycle where each paycheck starts with less money available than expected.

• Payday loans — generally the riskiest option.
Payday loans often carry very high fees and effective interest rates. What begins as a short-term solution can quickly become an expensive cycle of borrowing.

• Pay attention to patterns.
Needing occasional help is understandable. However, if you find yourself repeatedly relying on advances between paychecks, it may be a sign that a longer-term cash-flow solution is needed.

Bottom Line:
Unexpected cash shortages happen from time to time. If you need short-term help, be sure you understand both the costs and tradeoffs before borrowing. As a general rule, Earned Wage Access services are often the least problematic of these options, cash advance apps fall in the middle, and payday loans are typically the most expensive and highest-risk choice.