Income Tax Rates

Most of us are quite aware that credit cards although very convenient and can help you during times of need can also be a very deadly weapon in the hands of someone who doesn't understand of respect the responsibility it takes to hold them. This is evidenced by the many millions of people around the world that have been swallowed by credit card debt and are unable to get themselves out. Many people mistakenly think that they will obtain a credit card for "emergency" purposes but it is always with the most noble of intentions that problems arise. Most credit card holders will face two major problems, namely the temptation of using the card and also the convenience of it. Combine these two strong factors and you have the recipe of overuse.

Let's say for instance that you listen to what your parents say and only use your credit card only for emergency purposes, you are not as safe as you think you are. Say your toilet sprung a leak and you absolutely have to fix it but you don't have the ready cash to call in the plumber. This would certainly be classified as an emergency as you can't live with the toilet. It would seem harmless enough to charge the expense to your credit card. This however is normally when things start to snowball if you aren't careful. A little charge here and there is all it takes for things to come unwound very quickly.

The problems arise when you are confronted with the credit card bill; instead of having to pay off the whole amount you have the option of paying the minimum and settling the bill the next month. The majority of people will carry the balance and use whatever cash they made from their paycheck to buy other things instead. This is where the revolving cycle of credit begins for the many millions of people. Over a few years and a few purchases on the card and you'll be paying unnecessary amounts to service the interest obligations which will eventually get deeper to the point that you are financially unable to keep up with the interest payments alone.

This is where we introduce cash advance loans as a replacement for credit cards for "emergencies". Most people would normally not normally associate the two together however cash advance loans make a very good case for themselves to be used in times of emergencies compared to credit cards. The interest rates chargeable on cash advance loans and credit cards are similar however the prior has many "features" which can serve as safety nets which will not allow you to fall deep into debt. The first and most obvious is that cash advance loans do not offer a revolving credit facility. Whatever loans that you take out must be repaid at the end of the month when your paycheck arrives. This means that you will never be suckered into keeping your balances rolling and collecting interest for the bank.

Another added "safety feature" with cash advance loans is that you will not be tempted to buy unnecessary thing. Using cash advance loans for normal retail purposes is quite difficult and thus creates just the right level of inconvenience that you will be able to think through you purchase properly before going through with it. If you really need he money to buy and item then you will have to fill up some forms and only have the money in your account the earliest in a day. The temptation of buying items unnecessarily will also be reduced by the fact that you know you will have to pay off the balance at the end of the month. There is not way to escape that.

We feel that cash advance loans have been given an unnecessary bad reputation from the financial industry. It is a very valuable product and a great replacement for credit cards if you just want the safety-net for emergency funding. They offer you a way to get money if you need it while not allowing you to carry the balance forward to the next month thus not allowing you to get into a credit rut. Credit cards are extremely useful however they also carry the ability to ruin people if not used respectfully and wisely.