If you’re like most people, you’ve probably turned to a friend, relative, or employer for a payday loan at some point. An unexpected car repair comes up, or your pet requires emergency veterinary care you hadn’t figured into your budget. It could be you need a payday loan to complete a necessary home repair.
Unfortunately, many people don’t have a friend or family member they can turn to for a short term payday loan. As an alternative, they turn to credit cards. The problem is, credit cards come with hefty fees for cash advances. Relying on your credit card as a source for a payday loan can have devastating effects on your financial situation.
The problem with credit card cash advances is they make it far too easy to let repaying the payday loan slide well beyond your next payday. You intend to pay off your cash advance payday loan on your next statement, but the minimum payment is very tempting. In just a few short months, the interest on your credit card payday loan can accumulate to hundreds of dollars, depending on the amount of your cash advance.
A payday loan from a lender that specializes in fast, short term loans is often a much better alternative for individuals in need of cash until their next pay check. There are fees associated with a short term payday loan, but you will be much more inclined to pay the loan back with a firm due date. This can save you a great deal on interest costs you could end up paying for months with a credit card cash advance.