Do you find yourself in need of quick money? Maybe you’re in a bad financial spot as the result of a job loss or illness. Or maybe you’re seeking cash in an attempt to keep your business afloat.
Regardless of your situation, there are a few places you can turn. Since you’re in a hurry, some options, such as a bank loan, may not suit you. For this reason, you may immediately turn your attention to two other options:
- Credit card
- Loan shark
While it’s never a good idea to run up a large amount of credit card debt, it’s always better to choose this strategy as opposed to “doing business” with a loan shark. Here are three reasons why:
- Credit card companies are reputable. With a credit card company, you know you’re working with a legitimate and reputable operation. The same cannot be said about a loan shark.
- Lower interest rate. Even if you have a high interest rate credit card, it’s safe to assume that the rate will be lower than what you would secure through a loan shark.
- For example, you can pay a small minimum payment each month if necessary. Along with this, you may have the opportunity to transfer your balance to a zero percent credit card in the future. None of these things come into play if you borrow from a loan shark.
With all this in mind, you should have a better idea of why it makes more sense to choose a credit card than a loan shark.
Racking up credit card debt may not be your idea of a sound financial move, but this is always preferred over taking money from a loan shark.