What’s So Bad about Credit Card Debt? Three Reasons to Avoid it at All CostsYou’ll hear it all the time if you skim financial blogs or magazines: credit card debt is bad and to be avoided. But cards are so convenient and easy to use so why, you may be wondering, is it so bad to build up a little debt with them? Those experts are right, and you need to know the true cost of being able to buy things with a swipe or insert of a card. The consequences can be serious, and long-lasting, of having too much credit card debt, so avoid it by checking out other options, like cash advances, when you need a little extra money.
Credit Card Debt is More Expensive than Many Cash Advances
One of the most basic reasons that you don’t want to have this debt is that it costs you. If you can use a credit card and repay it in full every month, you’re in good shape. But if you keep building up credit card debt and paying less than what is due or even just the minimum amount due, you are paying the credit card companies. This is how they make money. You are paying their interest rates month after month, and the rates are typically high. Often, a cash advance makes more sense and is more affordable.
Credit Card Debt Can Negatively Impact Your Credit Score
In fact, the amount of credit card debt you carry around is one of the biggest factors affecting your score. A bad credit score can prevent you from getting loans, buying a car, or buying a house. Credit reporting agencies view a small amount of debt or a zero balance on cards to be responsible borrowing. On the other hand, having too much debt is considered irresponsible and can drop your score. Debt that exceeds about 30 percent of your credit limit will hurt you.
It Can Take Years to Pay off Credit Card Debt, But Not a Cash Advance
A lot of people who rely too heavily on credit cards end up paying only the minimum amount due each month. At that rate it will literally take years to repay the full amount and get out of credit card debt. Don’t let that happen to you because it means carrying around this burden that is both financial and psychological. It’s best to have good debt or short-term debt, not this long-term debt that takes so long to repay.
Next Time You Need Money, Try a Cash Advance Instead
The next time you’re tempted to reach for a credit card, consider the consequences. There are other options, including an online cash advance. A cash advance is quick, easy to get approved for, and convenient because it is done totally online. You won’t have to go meet with a lender. It takes about 24 hours or less from applying to getting cash you can spend. Repayment is on your next payday, making this loan affordable and easier to repay that credit card debt.