Trying to learn to play on a guitar that is set up incorrectly, is bad for learning, progress, and bad in that it damages your fingers and arm, teaches you incorrect technique, and leaves you with long-term problems. If a cheap guitar cannot be made to play well, leave it. I would prefer to own an Ibanez JEM or JS, but even a RARU "let's get rid of these" Jem Jr special is out of my price range. There are some nice "cheap" instruments out there, but even so, get it set up as low and light as possible. Even if this entails forking out extra money for brand new 9-42 Ernie Ball super Slinky's.
I once met a woman who had on hand a friend's guitar, for learning to play. I picked it up, fingered a few chords, and told her "Please, do not try to learn on this guitar."
I do not know where you are, and whether there are any choices in shops or guitars in your area. But follow the advice above, or find a steal at a Cash Crusaders (used SX / Ibanez at the price for a "new" Sanchez).
Do yourself a favour. Do not learn to play on a bad guitar. If possible, get a decent tutor. I echo the sentiment of if I knew better I would have had less problems now. Now, I have to try to learn all over again, decades down the line. And I did not even realise I had a problem before the internet came along...
