Pros and Cons of Credit

Speaking for my family, we are against credit cards. This unfortunately was not always the case.

pros & cons of creditAt the moment we are knee deep in credit card debt and trying to dig our way out. I personally always loved using my credit cards. That was before I realized what they were really doing to me. At first, it seemed they gave me so much freedom. I was able to buy almost anything I wanted whenever I wanted. Very cool. At first, the purchases made me so happy, filling a void almost. Of course once the statement came in the mail and I could only afford the minimum payment the void appeared again. I soon learned it was an endless cycle. There were times that I thought credit cards were saving us. When I had no other funds, a credit card always came through for me. What I couldn’t see was that, credit cards, were the reason I had no other funds. One time, we even got to go eat at Red Lobster for free because we had rewards through our credit card. They do offer great reward incentives. We have been paying on that particular card for almost 10 years now. I am not sure the free meal was worth it! I had, and may still have, an obsession with one particular credit card. It is and always has been my favorite. It’s black and sparkly and it refers to me sweetly. I used ( I stress used as I am currently off credit! ) this card for both in-store and on-line purchases. When I would walk into the store, I felt like a million dollars. I knew that I could pretty much have anything there that I wanted. I have paid off that card countless times, but I can’t seem to cut the card up. I am physically attached to this card and how it allows me to feel. It makes me happy. Until of course, I get the bill and realize I must have had some sort of out-of-body experience while using the card! Credit cards also make you feel important. If you have good enough credit to get a credit card, you must be doing well. At least that’s what I always thought. Of course now I realize it just means you are trying to live beyond your means and probably aren’t in good financial shape at all. I can say that because I have been that person. I have spent a lot of time living beyond my means with my plastic card. One of the best things about a credit card is that you no longer have to wait for anything, unless of course it’s being shipped to your home! While that seems like a good thing, it just enable us to be patient. Patience after all is a virtue, but the society we live in no longer recognizes that.

As a young person, I thought credit meant freedom, responsibility and reward. I thought it would save me from my troubles. As the years have passed I realize that credit really means captivity. Credit cards allowed me to be completely irresponsible with my own money. I have received no reward only a mountain of debt. I thought that credit cards would help me fill a void, when in essence I needed to appreciate the things I already had. I fell in love with the fact I could have things quickly, when in essence I lost appreciation for anything worth while. Beware, with every pro there is to a credit card, a con is right behind it!

Cash Loan Solution

Cash Loan SolutionIf you are experiencing short term financial troubles, then an overnight cash loan could be the answer. Whether you need money for an unexpected bill, or because of a family emergency, cash loans are a short term form of credit that could be incredibly useful. However, there are some dangers associated with this type of borrowing.

Short term cash loans are incredibly expensive. The interest rates can run to thousands of percent over the course of a year. You will need to make sure that you can really afford to borrow – otherwise you could end up defaulting and making your credit rating worse, making it even harder to access credit from a mainstream lender.

While an overnight cash loan is a good option for someone who has been hit with an unexpected bill, it is not designed as a revolving form of consumer credit. If you use this type of loan to cover general expenses – treats and holidays, for example, or to pay your rent on a regular basis, you are wasting money and should look for better ways to take care of your finances.

Look at joining a credit rating, reducing your monthly outgoings, or ways to supplement your income. All it may take is a few months of ‘sacrifice’ in order to get your finances on track. Once you are out of the payday loan trap, it gets easier to keep track of your finances – you could save a small amount of money each month, and still be better off than you were when you were paying a lot of interest on your payday loan. It makes sense to try to avoid high interest borrowing unless it is a genuine emergency that you are faced with.