Too many people jump right to the use of credit cards in order to give them the little bit of financial assistance that they need whenever they need it. However, many people are starting to realize that this might not be the way they would like to handle their finances.
Anyone who may be on the fence about the use of credit cards needs to consider their flaws. Many people end up with more debt than they can realistically keep up with as splurging on unnecessary items tends to become much easier when all you have to do is swipe a little plastic card. Plus, credit cards tend to carry extremely high interest rates with them and that means you will be paying much more for those everyday basic items you thought you simply could not live without.
Finding The Better Options
Focus on the alternatives, which in this case means researching and applying for installment loans online. With the online feature, you are given the convenience, security, and confidentiality that you may be seeking.
With the instalment loan, you will have a set amount of money to borrow and work with. This will ensure that you are not going to overspend or go over your budget. You also will not have to be worried about being tempted with continuous credit increase offers.
You are simply offered one loan amount and you decide whether you want to agree to the repayment terms that are offered to you. There is no chance for you to get yourself into deeper debt with this type of credit card and payday loan alternative as long as you are making all of your monthly payments on time. If you are late with any payments, you may be charged a late fee and that amount will vary depending on the specifics of your loan agreement.
Another benefit of the installment loan is that you are going to notice that your credit score can quickly raise, as long as you are making timely payments every month. Also, should you decide that you would like to pay off your installment loan as quickly as possible, you can make additional payments and have those applied directly to the principle balance. As suggested by the Huffington Post, you may also want to make bi-weekly payments instead of monthly payments. By doing that, you will have made one full extra payment by the end of the year. This gives you so much more control over your debt than you could expect to have from a credit card.
The Only Time To Get A Credit Card
Now, no matter how much you hate credit cards, there may be a time in which you should obtain one, and only one. Just make sure that you are never asking for an increase in your credit card credit limit. Never use it for your student expenses, monthly bills, or dinners out. It should be saved strictly for the use on a tow truck, hotel stay, or rental car should you ever find yourself in an emergency situation.
Again, never use the credit card for anything else and tuck it away in the back of your wallet. Out of sight, out of mind tends to help many people when there is a credit card within their reach. Then you can continue to focus on the use of your installment loan for your regular financial needs.
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