2nd March 2020

Is It Okay to Take Same Day Loans to Pay Off Your Credit Card Debt?

Credit cards make debt very accessible but can come with a high rate of interest. As a result, most people find it hard to keep their credit card debt in check. Most responsible lenders will not lend you cash in order to pay for further credit. Getting a loan such as same day loans are usually used for emergencies only such as plumbing repairs or car maintenance.

Can credit card debt be best?

When you pay by cash or debit card, you part with money you “already have” immediately. However, when you pay with credit cards, you pay for your purchases later. Some people become habitual of impulsive buying and even get their groceries via credit cards. When they receive a bill in the next month, they get shocked by their expenses.

You don’t have to pay your credit cards in full. Most providers will allow you to pay a “minimum amount” each month and roll over the rest of the amount to the next month with interest. While this may seem convenient, the rate of interest and your overall debt burden keeps increasing with time. Getting out of this debt becomes very difficult for some people, as the amounts could be higher than their monthly income.

Should you take a same day loan?

Whether this option is right for you depends entirely on the total loan amount, your income, repayment capacity, rates of interest and your financial discipline. Same day loans could be a good solution to that emergency bill or sudden expense which you weren’t expecting. Although interest rates can be quite high, the convenience of getting access to cash quickly can extremely helpful.

Of course, everyone should be aware of the repayment plan which will be put in place when they agree to a short term loan to make sure it is affordable for them and they will not struggle to meet their agreed monthly amounts.

Ultimately, everyone’s circumstances differ. Therefore, if you’re in need of credit, you should look at the advantages and disadvantages of each form of credit before deciding which is best for you. Look at your financial situation and if you expect it to change in the near future before proceeding as you’ll want to make sure you can pay off any money that you borrow.

On the whole, many providers will usually not issue a same day loan for those looking to use it in order to pay off existing credit such as credit cards or previous loans. This is to ensure they are acting responsibly and is in the applicants’ best interests.

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