Making Credit Cards Work for You

I can’t remember the last time I went through an entire day without seeing a commercial for credit counseling. You see them all the time. “Do you have $10,000, $20,000, or more in credit card debt? Can’t make your payments? Tired of the collection calls? We can help.” Have you ever noticed that you don’t see any of those commercials offering to take care of your mortgage debt that you can’t afford? Ever wonder why? It’s because when you get too far in over your head with mortgage debt the bank comes and takes your house.

Your mortgage is what they call “secured” by your home. Credit cards on the other hand are cheap unsecured loans. This means that the bank does not have any asset that they can come and take away from you. Basically they can only keep calling and asking for their money. If you continue not to pay they can put this information on your credit report. While this is bad if you are looking for a future loan, it’s nothing compared to losing your house.

The moral of the story is that while you never want to get in over your head with a loan, if you do, you want it to be a credit card and not your mortgage. So when you are in need of a loan because you are really tight you want to try to find an unsecured loan, so you don’t risk losing anything if for some reason you can’t pay it back. You are going to pay a higher interest rate, but when times are tight you have to do what you have to do.

Credit cards and payday loans are some of the cheapest unsecured loans. Not only are they cheap but they can also be easy, at least compared to a mortgage. You can go online and fill out an application and many time find out if you are approved in 30 seconds or less.

So if you are tight and need some money to get by, hop online and start filling out some credit card applications. Or if you need the money really quickly and you need less money then you make in a week, try a guaranteed payday loan. Good luck!