Direct Online Payday Lenders: Payday Loan or Credit Card?

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Online direct payday lenders offer a valuable resource for consumers experiencing short-term financial difficulties during tough economic times. When a car breaks down, a tooth needs filling, or bills are higher than expected, getting an advance on your paycheck may be a better option than reaching for a credit card. Having options is what helps us make good decisions, but when it comes to money, it’s important to know all of your options and what kind of effect your choices will have on your finances.

While credit cards may seem “easy,” paying them off after relying on them one too many times can be quite the opposite. Of course, the decision you make may be a matter of economics. Using plastic credit is one option, but remember, unless you want to incur interest charges, you must pay in full when you receive your statement. If you can’t, your balance will only grow as interest (and possible fees) are added over time. Credit cards are known to have some of the highest interest rates of all types of credit and can ultimately double your payment for something, depending on how long it takes you to pay them off. While credit card companies do nothing to discourage you from “charging” it, you may be putting yourself in a dangerous financial position. This type of credit can end up becoming long-term debt when all you really wanted was short-term help.

Fast cash payday loans, on the other hand, can help with emergency cash needs, but they close the door on an open line of credit when used responsibly and wisely. These types of small dollar loans are meant to be acquired and paid off quickly; strictly for temporary financial needs. While credit card companies require only a minimum payment each month, which can leave you in debt with them for months or even years, payday loans require you to pay back what you borrowed the next time you pay. pay. So you can take care of that last-minute trip to the dentist or that unexpected car repair when it’s needed, but pay back what you borrow as soon as possible. Very often it seems that these financial mishaps occur 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 will be due before you get paid due to the fact that the billing cycle has gotten out of sync with your payment cycle. Switching to a payday loan may be just the boost your checkbook needs to see you through until your paycheck goes to the bank.

There is also the issue of fees and/or late charges that can be added to your credit card in the event you are unable to pay your balance in a timely manner. If these fees assessed by your credit card company are going to be higher than those of a payday loan, it may be the best option to get a short-term loan from a payday lender and pay it off quickly instead of of being charged a small fortune. because it took a long time to pay off that credit card.

The bottom line? There will be times when using your credit card is the most appropriate option for your particular financial scenario. Keep in mind that paying your balance each month is essential to managing your expenses successfully. By doing so, you can use credit to your advantage while you take care of that last-minute bill or emergency expense. However, if you’re looking for quick cash but don’t want to reach for your credit card, seeking the help of direct online lenders may be the cheapest option in the long run.

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