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!

Temporary Financial Problems

Temporary Financial ProblemsA payday loan is known as such because it is usually expected that any loan taken is repaid on the next payday that comes up after the loan is taken. These loans are often limited to the capacity of the borrower to repay the entire amount depending on the salary they can expect on that payday.

Payday loans are short term and unsecured loans and are considered as cash advances against future earnings. Borrowers are required to have a record of continuing employment and amounts are restricted to the pay level of the borrower. Interest rates are high, but as the amounts are small the actual the effect of this high interest on loan amounts is small. There can be other charges that can add to the cost of these payday loans.

Borrowers require providing documentation that confirms their employment in the form of pay stubs and bank statements. Credit checks are not usually undertaken, nor are any other income criteria or assets required to be declared. Loans are approved within 24 hours, and the borrowed amount will be deposited in the bank account of the borrower immediately. The borrower is also required to deposit a check for the entire amount plus interest and charges, along with the application or as soon as approval is granted.

The check so deposited is cashed by the lender if the borrower does not visit them on the designated date and repay the loan. Many lenders offer this facility online, and payments are made electronically to bank accounts. The same process is used for the repayment of the loan and requires the borrower to give authorization for such withdrawal along with the application for borrowing the amount.

These loans are useful to tide over temporary financial difficulties and must be used judiciously. Regularly using them to meet living expenses is not recommended, and people in these situations must look at other means to improve their debt.