Credit Cards Lose to Cash Advance Loans
Credit Cards Lose to Cash Advance Loans
by Simon Palows
Anyone who has used a credit card before can easily tell you how easy it is to overspend with them. Their initial idea of getting a credit card might be noble, much as what their parents would have told them in using credit cards only for "emergencies" only. The thing is, there are still millions of people around the world with billions of dollars that are owed to the financial institutions that issue credit cards. University studies into the matter have uncovered that the main cause for this terrible level of indebtedness that most credit card holders face is due to two factors, temptation and convenience. It is hard to curb the temptation of swiping your card to purchase something and pay for it later. The convenience of not having to worry about the bill until the end of the month is even worst.
Even if you are following the advice of your parents and keeping the credit card just for emergencies there is still a good chance that it can bite you where it hurts later on. Say you have a leaky roof that needs some repair however you don't have the cash to do that at this moment, you can technically classify this as an emergency and thus charge the repair cost to your credit card. This seems harmless enough as you tell yourself that you are going to payoff the debt that you have accrued when the bills come.
The nastiness comes when you actually receive your credit card bill for the month. More often than not you would have already spent the money that you need to pay off the credit card bill. As such you will either willingly or even be forced to pay off the minimum charge thus carry the balance to the following month. This is where all the problems really start. The revolving cycle of credit has begun and this is where many millions of people world wide get sucked into paying off the interest for their credit card into oblivion. Over a couple of years and a few "emergencies" without having them settled at the end of the month is all you need to build up a downward credit cycle.
This is where cash advance loans come to play. People would not normally associate cash advance loans as a replacement for credit cards but it is actually a very valid use for them as they work very well in "emergency" situations. There is actually a very good case for the use of cash advance loans to replace credit cards so you don't end up in the credit rut. The first benefit to the use of cash advance loans is that there isn't any revolving credit facility. You will have to settle your debts every month. You won't have the option of paying the minimum and letting the balance slide to the next month.
Another feature of cash advance loans that make them more appealing than credit cards is that they aren't as convenient. With credit cards you can simply take the card and swipe away, there is no safety-net to help you think about your purchase or properly evaluate your current financial situation. With cash advance loans you have to fill in a form and wait a couple of days before the money is made available to you. This is great for you to properly evaluate your purchase and will also stop you from purchasing anything at the spur of the moment. You can basically rule out the "convenience" factor and also put a good lid on the "temptation" factor.
Basically, a cash advance loan product is a very straight short term loan answer to those who need the cash to buy something now but can only pay it back after they have received their paycheck. There are no potential hang-ups that might plague you in the future. Credit cards are extremely useful products however their usefulness normally causes them to be overused and subsequently drains the user unnecessarily.
About the Author:
Find the tips and tricks required to obtain cash advance loans easily at http://www.cash-advanceloans.com
Top of Credit Cards Lose to Cash Advance Loans Page
Back to Articles Page
Back to the Ex-Health & Home Shopping Home Page