Payday Loans vs Credit Cards

To each their own is a good rule to live by. We all have things that we prefer over others and we cannot really expect other people to follow us.

When it comes to finances though, I like to tell people about the options that are available to them. The current economic crisis that most people are feeling now is enough of a reason to want to help others realize that they can take a different course of action in regards to money.

I strongly believe that credit cards should be used only minimally. That flat piece of power can be used to bail you out in many different situations.

It does have its benefits but it also has its drawbacks. I have learned this the hard way as all my cards have been maxed out at the same time before. That is why I am a big advocate of using credit cards as little as possible.

So aside from credit cards, what other option might I suggest? A fast cash payday loan.

This loan can give you the cash you need when you most need it. It may not be as convenient to use as a credit card, which I easy to pull out of your wallet and swipe, but payday loans give you cash on hand. You might be wondering why having cash in hand would be better versus having a credit card with a higher limit. Well, having unlimited purchasing power can ruin you, if you are not careful.

Having your credit cards on you can make you think that you are secure. It is easy to make hasty purchases and worry about paying for them later. Before you know it, you are drowning it debt. When you apply for a payday fast cash loan, you can control your spending budget and expenses more wisely.

Take a look at these two scenarios:

You go away on a short trip to get away from the city. In the first scenario, you decide to use your credit care to pay for your hotel, gas and food. You may use it for everything including sightseeing and souvenirs.

You don’t immediately feel the weight of your purchases. When the credit card bill comes, you are actually surprised at how much you spent and you may be tempted to just pay the minimum payment and then forget about how your balance is going up.

In the second scenario, you decide to take payday loan. You know exactly how much you have to spend and you are required to pay the amount back, in full, in a short amount of time.

Now, while I don’t recommend taking payday loans for vacations, you are allowed to do what you wish with your money. Lenders don’t even ask you what you need it for anyway. You can see how the two options compare with each other and see the prudence in making a safe financial decision.

It really is best if you avail payday loans for urgent, or emergent situations in your life. For instance a bill that is due before you can pay it, you take a payday loan to make that payment and avoid any late fees from your creditor. Or you may have auto repairs to make that you didn’t budget for and you are between paydays. Some people find themselves in a crunch when they can’t pay for medical services, or medications.

The reason I advise to take payday loans for urgent situations is to keep you from falling into the same habit that you may have with your credit cards. Because the cash is easy to attain, you might be tempted to get payday loans frequently.

If you have consistent income that gives you the finances to pay your payday loans off, then go for it, take as many as you like. But most people find that if they are caught in the payday loan trap, that eventually they need to rollover their loan and then they are paying more in fees than they should have been in the first place.

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