You have this little piece of plastic in your warm hands, and it's just waiting to be used. Seems fairly harmless, right?
That's what you thought before you saw the mounting debt and the mounting interest rates and fees that go along with that credit card debt.
The Credit Card Dilemma
Credit cards can be convenient and practical, becoming a true lifesaver at times. However, what happens when that little piece of plastic becomes a huge burden on your back?
Unfortunately, this past year has shown that the credit industry is filled with perils for consumers. Ahead of the legislative changes meant to regulate credit cards, the issuers quickly moved to increase their interest rates and fees - resulting in dramatic increases in our monthly minimum payments and balances.
Who Needs a Credit Card?
It seems that we are left with two large groups of people: the first group maxed their credit due to a variety of conditions, most of which are related to the recession of the past year; the second group is so disgusted with rising credit related interest rates and fees that we have sworn off credit cards altogether.
In any case, there are many Americans now who are looking for a smarter alternative to credit, and that alternative may be in the form of a payday loan.
Unlike just a few years ago when these loans were considered only by those completely down and out on their luck, many people are now turning to payday loans as an alternative to credit cards.
The Benefits of a Payday Loan
This type of loan offers many great benefits: they are easy to secure, they require no credit check, and the money is deposited into our bank accounts. From broken down cars to leaky roofs and overdue rent payments, a loan can come in quite handy for a number of reasons.
Payday loans are straightforward, as they provide quick cash in the form of a short-term loan. If you are interested in a payday loan, you can simply head to your computer and secure a loan in a matter of minutes.
The repayment terms are quite short for these loans, as the applicant is typically expected to repay the debt in a matter of a couple weeks. However, for many Americans, this is exactly the type of loan they need. There are no credit card bills haunting them for months and years and no pesky credit card checks.
If you are considering this type of loan as an alternative to a credit card, make sure you fully understand the loan's interest rates and fees, as well as its terms and conditions. Remember: all loans are not created equal, so make sure you take the time to find the most competitive payday loan with the most realistic repayment terms.
Finally, don't make the mistake of falling into the rut of relying on payday loans to make ends meet. Continue to use them in a responsible manner so that you can enjoy the benefits of a payday loan without any of the hassles.