Jan
26
Are Debit Cards and Payday Loans Compatible?
January 26, 2010 |
News about people taking concrete actions to reduce their debt is always nice to hear. In these times when so many consumers are in debt and the economy has not fully stabilized, it’s a positive note that there are really people committed to settling their financial troubles in an effort to gain their much desired peace of mind and a life free from debt.
Recent news in Australia confirm moves by consumers to lessen their debt. One of their efforts is to cut down on the use of their credit cards. Another way that proves people’s desire to lower their debt is the increasing popularity of the debit cards. This type of card has become widely available among consumers who want to avoid accumulating more personal debt and manage their finances well. And due to its popularity, more banks are now offering this product to their clients.
Compared to the credit card and the use of electronic funds transfer point of sale or EFTPOS, the use of debit card has gone up in the past year. Data from the Reserve Bank revealed that in November 2009, transactions using debit cards went up by 39 percent. The advantage of debit cards is its flexibility. It can be used in online transactions as well as over the counter even when the owner is overseas. What many people also liked about this is that no credit is involved because it’s their own money that’s being used and debited to pay for their purchases and other transactions.
Financial experts foresee that with the widespread use of debit cards, it is more likely that people will stay away from debt as much as they can going into the future. In fact, some of them believe that debit cards will be the preferred card for 2010.
Debit cards are good when people have enough savings. This is also ideal for use by those who have a steady job as they can have their salaries directly deposited to the debit card account.
But what if no funds are available and an emergency situation requiring immediate money occurs? Not to worry because people can always turn to the short term payday and cash advance loans to solve their temporary financial need. This may be the best recourse while their payday is still a week or two weeks away.
Working professionals with a current bank account are qualified to take out a loan and they can apply for it conveniently over the internet. The short term loans should be chosen over the use of credit cards as they are more affordable. Unlike the credit cards that involve several finance charges as well as hidden charges, most payday loans involve only a one-time fee and sometimes with no extra charges for late payment.
By opting for these short term loans, consumers can just focus on repaying the money they borrowed from one lender and not any other debt. Then once they have sufficient funds in their debit card account, they can start paying back the money they owe and start saving again.
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