Do you turn to best direct payday loan lenders because you are comfortable being in debt? Most people are in debt due to overused credit cards. Sometimes credit card charging is just too easy. We swipe our card, not knowing the total cost of the transaction. Those swipes add up at the end of the month, and we get the statement with the new high balance. How did that happen? Is the minimum payment a comfortable enough expense to justify new debt? When you only make the minimum payment each month, do you worry about how much interest eats at your paycheck? Do we even think that we will pay our credit card off one day? Do you ever think about what your finances might look like if you didn’t carry these extra payments? If the debt is not a necessary expense, why have it scheduled for so long?
Direct Payday Loan Lenders Don’t Hide High-Interest Rates
Many people avoid using short-term loans for the fact that direct payday lenders charge high interest. The cost is a bit ‘in your face’ when an interest fee is attached to the initial payoff. Since this debt is supposed to be paid off in just a few weeks, the lenders must quickly collect their revenue. Because the loans have half the term limit as credit cards, it can become a costly debt if not paid off on time. Interest never goes unnoticed when it comes to short-term loans.
Compared to payday loans, credit cards will usually carry much lower rates with monthly terms, and the revolving credit line will remain open as long as you are good at making the monthly payments on time. Pay down your debt and have that much more available to spend. Give the creditor a reason to raise your rates, and not only will the creditor jump on the opportunity, but the rates will skyrocket to short-term loan numbers or even higher. Even one late payment could change your debt drastically. Go from a 11.9% interest rate to a 29.99% rate on your current balance, and your minimum balance will increase with the added interest charge. Responsible short-term loan lenders will at least keep the prices the same no matter what you do.
Can You Afford To Pay Off Your Loans?
How stressed are you when your finances can no longer keep up with all the debt and unexpected or emergency costs? If your minimum credit card payments increase and the only way to get fast cash is by applying with payday loan direct lenders online, would you be able to continue making payments and pay off the short-term loan? Most often, at this point, managing your finances has flown out the window, and financial stress is the replacement. Will you be able to afford the payoff? How will you ever pay off the debt?
Answer The Hard Questions
Honestly, answer the above questions to make the best choices for your finances. Compare your monthly take-home income and all monthly expenses. Don’t forget to include any repeating quarterly or biyearly bills. Take a look at the most expensive month in the last year. Use the worst-case scenario to plan your monthly budget. If you prepare for the worst, the rest of the months will be smooth sailing. You may even find that doing so will alleviate the need for future direct payday loans. While you are at it, you can focus on paying off some of that debt you were once so comfortable with.
Change Your Mindset
Credit card companies want you to be comfortable with their debt. It is their strategic way of keeping you onboard while carrying balances from month to month. Because their interest does not usually have the same shock value as a short-term loan, people feel good that they are making smart financial choices. It isn’t until the debt becomes uncomfortable that many people begin to calculate how much of their income is wasted every month.
Change your financial mindset. Treat credit cards as you would direct payday lenders , pay the debt off as fast as possible, and become comfortable with putting money in a savings account for emergencies.