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Which is it to be? Quick Loan or Credit Card?

quick-cashFor a long time now, we have become very used to living off credit. This is unfortunate as we may find ourselves out of our depth, having totted up a huge bill and struggling to make the repayments on a monthly basis. And the trouble is it is just too easy to do. Credit card companies are continually offering us card after card and, being only human, particularly if we find ourselves short of cash one month; it takes just a few minutes to apply. OK so our immediate cash flow problems are resolved but what about the bigger picture? Maybe it is time to take a fresh look at our borrowings before our total debt is larger than we can manage.

But if it is not to be credit card, or even bank overdraft, what exactly are the options? Agreed that it is sometimes impossible to manage on our salary alone, particularly when unexpected debts knock our carefully planned budget for six. On paper, it may all look rosy. Our income is in excess of our expenditure and we should even be able to save £50 a month. But like most well-made plans, it doesn’t always work out like that. The £50 gets swallowed up by sundry expenses like lunchtime snacks and trips to the supermarket. The end result is no savings, so that when the car breaks down or the bike needs a service, the funds just aren’t there to cover the cost.

As we can see, credit cards can be a wolf in sheep’s clothing. So how about looking for something different that will not land us with long term, ever increasing debts? An internet search for ‘payday loan’ will bring up the name Wonga. But if you have never heard of Wonga or ‘payday loans’ then you can be excused for wondering what on earth this is all about. It’s a very simple process. Unlike credit cards and similar types of borrowing which let us borrow large amounts and pay back over extended periods, payday loans have to be paid back, in full, within 28 days or less. At first glance you may think that this is not so good. After all, with a credit card you can pay it back over years can’t you? But think again. The longer you borrow the money for the more it costs you. A payday loan can work out cheaper as there is no option to spread the loan over a longer period.

Added to that, a Payday Loan truly is fast and can be in your account within minutes. Once you have repaid it in full, the debt is gone. Wiped out. No horrific huge sum of debt stockpiling into the future. No worrying about monthly repayments. It really is worth thinking carefully before you take out another credit card to shuffle your debt from one card to another. Once you have gotten used to the new way of dealing with your money shortages, you should find it refreshingly simple and easy to use. Bye-bye credit cards!

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September 3, 2013 um 12:50 pm
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