Credit card vs pay day loans

Credit Cards Vs Payday Loans
By [http://ezinearticles.com/?expert=Drew_Miller]Drew Miller

Well, the short and the sweet of it is that the average credit card, even one with extremely high interest, will always be cheaper then any of the payday loans offered out there today, whether online or not.

Although understanding money helps, and in that instance neither option is good, if you are trying to get out of debt and maintain a good credit score, you are probably better off taking the cash advance on your credit card, as the interest rate is lower.

Using payday loans you usually pay anywhere from seventeen dollars to twenty-five dollars for every one hundred dollars you borrow, which quickly ads up and before long you have handed over almost a full one-quarter of the amount you asked to borrow in the first place.

Now the plus side to this is, you are not given a choice and must pay it off in a two-week pay period; whereas, with credit cards you could opt to pay the minimum payment indefinitely and never have it paid off.

Speaking of credit cards, we all understand we can get a cash advance from our credit cards, and that the interest rates are much lower than those of a payday loans are, but how much are we willing to spend repaying the interest if we happen to decide the minimum drag it out option is easier to maintain. Much more one would surmise.

Now the important question, if we all know this information, which of you has the answer to...What happens if our credit cards are maxed out? What then?

I think it is safe to say that the only time a person would apply for a payday loan, instead of using their credit card, is when they have used up all the other options that are available to them, including taking a cash advance on their credit cards.

Most people hesitate to ask their employers for cash advances on their pay, as they do not want their employer knowing they cannot manage their own money, and the same applies to family and friends, so what other options are left.

Maybe the perfect option, the one rarely chosen, is learning to live within ones means and keeping a bumper saving account to rainy day emergencies. This way when a situation arises, you will be able to handle it without maxing out your credit cards, and without the help of an expensive payday loan, the pushes you further into the cesspool of debt.

Drew Miller has been writing articles about the financial loan industry since 1993. He is now dedicated to helping the consumer undestand payday loans. For cash advance information please visit http://www.paydaycashadvance.us

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