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Online direct payday lenders offer an invaluable resource for consumers who find themselves facing short-term financial hardship during tough economic times. When a car breaks down, a tooth needs to be filled, or bills are higher than expected, getting an advance on your paycheck may be a better option than getting a credit card. Having options is what helps us make good choices, but when it comes to money, it’s important to know all of your options and what kind of impact your choices will have on your money.
While credit cards may seem “easy,” paying them off after relying on them a few times can be quite the opposite. Of course, the decision you make may be an economic matter. Using plastic credit is an option but remember, unless you want to incur interest charges, you must pay back the entirety of what you charge when you receive your statement. If you are not able to do this, your balance will only grow as interest (and potential fees) increase over time. Credit cards are known to carry some of the highest interest rates of all types of credit and can cause you to end up paying twice as much for something, depending on how long you take to pay it off. While credit card companies do nothing to discourage you from “charging them,” you could be putting yourself in a financially precarious position. This type of credit can end up turning into long-term debt when all you really want is some short-term help.
On the other hand, quick cash payday loans can help with emergency cash needs, but close the door to an open line of credit when used responsibly and judiciously. These types of small dollar loans are meant to be taken out and paid off quickly; Strictly for temporary financial needs. While credit card companies only require a minimum payment each month, which can cause you to be in debt for months or even years, payday loans require you to pay back what you borrow the next time you get paid. So you can take care of a last-minute trip to the dentist or an unexpected car repair when needed, but pay back what you borrow as quickly as possible. These financial mishaps often seem to happen a few days before payday, when there is nothing left to withdraw from your bank account. There are even times when a utility bill or insurance premium is due before you get paid due to the fact that your billing cycle has gotten out of sequence with your payment cycle. Switch to a payday loan It might just be a push your checkbook needs to see you in order for your paycheck to go to the bank.
There is also the issue of late fees and/or fees that can be charged to your credit card in the event that you are unable to pay your balance in a timely manner. If these charges assessed by your credit card company are going to be more than those for a payday loan, the wiser option may be to take out a short term loan with a payday lender and pay it off quickly in return for making a small fortune because it took so long to pay off your card. Credit those.
The bottom line? There will be times when using your credit card may not be the most appropriate option for your financial scenario. Keep in mind that paying off the balance each month is essential to managing your expenses successfully. In doing so, you can use the credit to your advantage while taking care of that last-minute bill or emergency expenses. However, if you are looking for quick cash but don’t want to resort to your credit card, then seeking help from direct online payday lenders may be the most economical option in the long run.
