#1 You’re a 5th year student in college and you’ve completely run out of money to pay for the last course you need to graduate (and alcohol)…

This pretty much warrants taking out a payday loan.  If you need to take out a loan to pay for your last course needed to graduate, do yourself a favor and take the money. Your opportunity cost for not graduating is a lot bigger than the interest you’ll have to pay back. (Lesson #1 — Calculate Your Opportunity Cost)

#2 Your 1992 Honda Accord finally hit its last mile, and can no longer be called the chariot of love… it needs to be replaced if you want to get to work ontime. But you have no money!

Yep, if this has happened to you, then getting cash in advance is something you’re forced to do. Go ahead, no one’s going to judge you. Just make sure you provide your 300,000 mile car with the burial it deserves.

#3 Your 25th Wedding Anniversary is coming up and you’re flat out of cash. Plus, it’s that time of the month…

Okay, please, please, if this is the situation you’re in, for the love of God get the cash advance. Refer to Lesson #1 about opportunity cost. The opportunity cost of not buying your wife a gift for your 25th wedding anniversary is hell on earth.

#4 It’s Christmas Eve and your 5 year old son wants a PS3, but you’ve just been robbed of all your money.

Nope, sorry. This does not warrant getting a cash advance. What the hell are you thinking? Does your son really need a PS3 and Grand Theft Auto?

I hope you’re getting an idea of when a cash advance should be used… of course I’m exaggerating quite a bit.  It’s okay to get a cash advance if you’re low on funds and you know you’re going to be able to pay it back soon. Just make sure you use the money for what it was intended to be used for.