Would you spend more using cash advance loans online or credit cards? Of course your answer would be credit cards along with the majority of others answering the same question. The revolving credit source is the leading cause of debt for our nation. The spending power behind a credit card keepsmany people spending beyond their means, yet people continuously refer to the direct lender as bad debt.
Would it make sense to take out a cash advance online loan and book a hotel room or would it be more reasonable to just use your credit card? The intent for either of those practices would be to pay it back as soon as possible, but with a credit card the spending continues. Revolving debt gives continuous use of the credit line until the limit is reached or a payment is made. With each payment comes additional spending power. A short-term loan does not follow the same practices.
Cash advance loans online are a one-at-a-time money solution.
As you work hard to pay off fast cash advance loans, there is no balance to reuse. In order to get more money from one of these lenders, you will have to apply again. Most responsible lenders will not approve loans from applicants with multiple outstanding loans. The demand for a full payment would leave some lender without their money. The risk associated with these short-term loans is already too high for a lender to become one of many waiting for your next paycheck.
The stigma of the dreaded debt cycle will keep applicants away from the cash advance lenders and focused on using credit cards. Which debt cycle is worse? It all depends on the given personal situation. Some people will argue that the high interest short-term loan which may take several months to pay off is much worse than any kind of credit card debt. It is easy to lose focus on how much interest is being paid over the years when the monthly payment demand does not intrude too much on our budgeted lifestyle.
Credit cards are a billion dollar business without statewide regulations. It is hard enough for the government to try to regulate direct lenders; their attempts to do the same with creditors would produce minimal if not zero results. Credit companies have big political backers. Money talks and provides lots of support to keep the government out of the way credit card companies do their business.
In the meantime, the cash advance industry continues to work at clearing their name from the negative exposure throughout past years. It doesn’t take much to ruin the reputation for all direct lenders. One predatory lender will tarnish the industry enough when there is a horrible story to tell. With this industry, it takes only one lender to ruin it for others unlike other businesses. We find bad apples in banks, the medical field, with politics and the education system, (to name only a few) but responsible short-term cash advance lenders carry a stigma created by others.
Online cash services have taken some of the shame away from people needing to get extra cash but didn’t want to be associated with the loan itself. Applying from home is quick and convenient without anyone knowing your business. Even with the privacy on online loans, most people would choose to use a credit card over taking out a fast cash advance loan.
