Tired of credit card debt? Wishing you never maxed out those cards? There are some people who have no credit cards at all. No cards no debt, sounds perfect to those sitting deep in debt. Maybe direct payday loans online lenders have something going for them with short-term loans rather than revolving debt like credit cards. At least when you make a payment to a direct lender it doesn’t give you more money to spend elsewhere.
There are pros and cons to any kind of debt. Since credit card debt is what is burdening the majority of household budgets, it is important to understand both the good and bad. It is also important to know how a short-term payday online loan would fit into the scheme of things.
Pros to credit cards begin with the expansion of spending power beyond what monthly income allows. It gives the borrower a freedom to make purchases they otherwise would not afford. It helps with emergencies as it covers the bill and gives the user time to come up with the payment. It is revolving debt, so as you make payments to pay down the loan, you free up additional spending power. People like the freedom plastic cards give as they are accepted all over the world and make online shopping a breeze.
Direct payday loans online pros
A fast cash direct payday loan has its good points too. Besides being fast, easy and extremely convenient to apply, the quick cash in the bank is a sweet result. A short-term loan is a great motivator to keep emergency needs out of long-term debt status. These direct lenders do not check credit scores for loan approval. If you meet the company’s qualifications, your loan will be based on your monthly take-home income.
Cons to credit cards will affect those with and without access to them. For starters, let’s look at how easy it is to build incredible amounts of long-term debt. Small minimum payments may disguise themselves as a good thing, but all it really does is invite the debt to stick around for a long time. The minimum payment will only pay down the principle balance a smidgen each month. If you don’t have a credit card, travel opportunities are difficult. Finding a balance between having credit and using it wisely is a difficult road for most people.
Payday direct loans online have their own cons as well. The most obvious one is the high cost of interest which is due at the time of the full balance payment. The fast payoff is not the easiest payoff schedule for those will struggle to obtain the cash for a full payoff. If the borrower didn’t do their homework in finding a good lender, there could be lots of extra fees on tip of interest which will only make the debt tougher to pay off. If this debt falls into default it will land on your credit history once a collections agency gets a hold of it.
As important as it is to not let emergency costs ruin your monthly budgeted plan, it is also important to be in control of whatever debt option you choose. Just because the creditor makes it easy for you to stretch out your payments, it doesn’t mean you have to. If you find that an online payday lender will work the best, find a one that will offer you payment options without over the top fees.
