Are you concerned that you’ve taken on more credit card debt than you can handle? Are you beginning to consider all your options, including some that are less than ideal?

If you answered yes to these questions, take a step back to assess your situation before you make any financial decisions.

For example, you may find yourself gravitating toward a payday loan. This sounds like a great idea, as you’re able to get your hands on the money you need in a timely manner. Not to mention the fact that your credit score and history don’t have any impact on your approval.

But there’s a problem with this: you’ll pay an ultra-high interest rate, all while jumping into a cycle that’s difficult to break.

If you go down the wrong path, your difficult financial situation will become even more challenging in the future.

Fortunately, there’s an answer: a balance transfer credit card.

With this, you can move all of your credit card debt onto a single card. The benefits of this strategy include:

• Zero percent introductory rate
• Easier management of your credit card debt
• Better terms than your other credit cards

When you’re stressed over your finances, it’s easy to make rash decisions and hope for the best. Unfortunately, the best doesn’t always come. Instead, you end up digging a deeper hole.

A balance transfer credit card isn’t the answer to every financial problem, but there are times when it can help you avoid a disastrous situation.

If you’re ready to consider this option, here are some questions to answer:

• How much credit card debt do you have?
• Is a balance transfer the best way to consolidate your debt and save money?
• Are you okay with the idea of paying a balance transfer fee?

After you answer these questions, you’ll have an easier time deciding if a balance transfer credit card can help.

Even if you don’t use a balance transfer to your advantage, avoid payday loans and loan sharks at all costs.

Is your business in financial trouble? Are you concerned about staying afloat while you figure things out?

If you find yourself in this position, you’re likely to search high and low for the money required to save your business.

While there are many options to consider, some business owners make the mistake of turning their attention to a loan shark. Here’s why: they can secure the money they need without a long application process. Furthermore, if they have bad credit, their chance of approval is greater than it is with more traditional options.

Even if this sounds like a great idea on the surface, you shouldn’t go down this path. It may provide you with some immediate relief, but as the days turn to weeks you’ll come to realize that there is no end in sight.

Here are some of the many reasons to avoid taking money from a loan shark:

• The interest rate will be extremely high, as there are no regulations in place
• If you don’t pay the money back in time, you may find yourself dealing with an extremely angry lender who threatens you in a variety of ways
• It’s a vicious cycle of borrowing that can be difficult to break

Turning to a loan shark to save your business could end up being the final straw in going under. Rather than opt for this type of loan, consider the following options:

• Bank loan
• Credit card
• Loan from family and/or friends
• Home equity line of credit
• Personal loan

These are all much better options, as you’re dealing with legitimate financial institutions (or loved ones) that won’t attempt to take advantage of you. Instead, they will provide you with your options and help you find the product that’s best for you and your business.

There could come a time when you need money in a hurry. In fact, you’re so anxious that you immediately begin to consider all your options – even those that are not necessarily in your best interest.

Despite the bad name, loan sharks are attractive to consumers for many reasons. Not only can you obtain the money you need in a hurry, but you don’t have to complete mounds of paperwork to do so. It’s the best of both worlds, right?

Of course, there’s a drawback: you’re doing business with a shady individual or company, all while paying more in interest than you ever should. Add this to the fact that there are no regulations, and you’ve put yourself in a bad situation.

Rather than turn to a loan shark, consider the benefits of obtaining a credit card. There are many reasons to go down this path, such as:

• Hundreds of offers to choose from, even for people who have bad or fair credit
• The opportunity to deal with a legitimate bank that has your best interests in mind
• The safety and security of borrowing from a reliable financial institution
• No personal safety risk, even if you make a late payment or default

Many people shy away from a credit card because they believe it’ll take them too long to complete the process. This may have been the case in the past – before the days of the internet – but it no longer holds true.

You can search for offers online, apply for the perfect credit card, and often times receive a decision on the spot. This gives you the opportunity to move quickly. So quickly that you can begin to use your new credit card in the immediate future.

So, if you ever find yourself trending toward a loan shark, think twice about what you’re doing. You’re much better off securing a credit card.

In the past, we’ve discussed some of the many reasons to avoid a payday loan. While it’s easy to focus on the financial impact –primarily the high interest rate – there’s something else to think about: the emotional toll this relationship can take on your life.

To start, borrowing from a loan shark can result in a cycle that’s not always difficult to break. You tell yourself you’re only taking out a single loan, but soon enough you’re coming back for more.

Here’s what we had to say about this in a past article:

“You take out a payday loan with the idea that you’ll never do so again. However, you soon find that it’s difficult to escape. Here’s why: you may not be able to repay the loan on the due date,meaning it costs you more money in fees. This leads to your debt dragging on for much longer than expected.”

When you slip into this cycle it’ll begin to weigh you down.

Here are a couple other things to keep in mind:

• Fear of higher rates and fees in the future. Forexample, if you miss a payment, you have to concern yourself with extremelyhigh fees, often accompanied by an interest rate hike.
• Fear of violence. This isn’t something you ever have to worry about when borrowing from a traditional lender. However, when borrowing from a loan shark, it’ll always be in the back of your mind. You never know if you’ll make a mistake that leads to a violent or aggressive encounter.

The emotional impact of borrowing from a loan shark is very real. If you don’t think about this upfront, you could go down a dark path that adds quite a bit of stress to your life.

Do you have any experience borrowing money from a loan shark? What was the emotional impact on your life?