What do you know about your financial situation? Are you still applying for new credit cards in order to make your budget work or have you set your sights on safe online cash advances to keep long-term debt off your financial plate? There is a big difference between the two. It’s important to understand how each type of loan can and will affect your finances. Most people turn to credit cards while others swear by their success with short-term fast cash advance loans.
Revolving Credit
The credit card is the ultimate in revolving credit. Think about the circular door that keeps going round and round until you step out. Credit cards are very similar. If you enter into this debt and pay it right back come the first statement, it is quite an easy way to access the other side. If you leave debt in the door, it continues to turn not giving you a chance to step back out to either side.
Credit card debt left unpaid is charged interest. You have to pay for the privilege of not returning the money. That is right; credit cards are a privilege to those who maintain good money management skills. What happens when you fall off the band wagon and stop taking care of your responsibilities? That’s right, the privilege is taken away. Nowadays, lenders think twice about giving out credit to those who are credit challenged.
Short-term loans
These loans are different than typical installment loans. The payoff is not broken up into several equal payments. The money is in fact set to be paid in full on your next paycheck date. All money borrowed plus interest fees will often be too much payment from one paycheck. Some online cash advance companies will provide opportunities for borrowers to extend or rollover their loan payments. Many borrowers will work at paying down their balance with each payment so interest decreases and the light at the end of the tunnel shines brighter after each payment.
Because these loans are short-term, (the average term for a fast cash advance is two weeks), the interest comes out more often than revolving accounts. People who do not get these loans paid off in a reasonable time will create problems for other budgeting categories.
Online cash advances are convenient not comfortable
Whereas revolving small minimum payments make debt comfortable a short-term cash advance online does the opposite. Financial problems are right around the corner with any type of debt left long-term. It could create havoc within your bank account or just simply wear down your credit. Since a big percentage of your credit score is focused on credit card management, even comfortable balances without payment errors will negatively affect your creditworthiness.
Personal financial situations will often make one of these options more attractive than the other. Not everyone will have the option to choose. Some people’s credit worthiness will no longer offer credit opportunities. Other borrowers may be working on building their credit back and are focusing on paying off the debt so they choose online cash loans in advance instead. Believe it or not, there are some customers who choose the short-term loans because of the pressure of high interest cost. It makes for a great incentive to get rid of the debt as soon as possible. It is convenient cash without the comfort brought to you by revolving accounts. Both are opportunities for fast cash at a price.
