Credit cards have become an easy way to get money for the things you need when they are beyond your purchasing capacity. Credit cards offered by the banks give you free credit for the credit cycle, and you are obliged to pay it in complete at the end of the billing cycle. Credit cards do generally provide higher spending limits based on the income of the people. If you fail to manage to pay your amounts at the end of the cycle, you will have to face issues like low credit scores and high-interest charges. When you fail to settle the credit card bills, you choose to go with emergency cash loans to arrange temporary funds for the time being. The current article is about whether using emergency cash loans for credit card bill payments is the right choice.

Don’t Get A Loan At A Lower Interest Rate

Emergency Loans are sanctioned unsecured. They comparatively hold interest rates in the market. Using emergency cash loans for credit card bills does not lower the interest rate you pay for it. The emergency cash loans are allowed you to repay the loan in easy instalments. The longer the tenure is, the higher will be the interest out go for the loan. The interest rates on emergency cash loans may not be as high as credit card EMIs, but not to the level it can be ignored for shielding the credit score. You will also pay a high-interest rate on the loan if you are already at the threshold of the required credit score or have a low repayment capacity. If you are at the juncture of availing emergency cash loans for inevitable reasons, make sure you shop around the market for deals and fetch the credit at lower interest rates for possible. Emergency cash loans can be processed free of charge. To prevent getting into a debt trap that cannot be recovered, apply for a loan and what it costs to take the credit and gauge it with the benefits of credit card bills.

Don’t Fix Your Spending Problem

Emergency cash loans are additional debt, and they could be an extreme burden on your budget, especially when you are taking the credit to settle overdue credit card bills. You may have to cut more from your income towards EMI payments. Taking a loan to settle credit card bills may not fix your spending problem. You may have to make many compromises to adjust funds towards the repayment, especially when the loan tenures are short, like three months. You will face more problems in your monthly spending if you are taking one debt to settle the other. The better way to handle your finances is to limit your temptation for credit card spending rather than going for Emergency Cash Loans to settle your credit card bills. You have to drill down your spending pattern to fix it, really. Take steps to close your unused credit cards, which will, in turn, reduce your available credit limit, thereby, your spending habits. If you are paying off your credit cards with the loan, you will fail to charge them again and end up in deeper debt again. Always look for a financial solution to limit credit card spending within the limits of your repayment capacity.

Consider Debt-Free Alternatives

If you suspect your ability to settle the credit card bills for the current month, look for debt-free alternatives to make it less expensive. You can check on your savings or sell out some unused items in the house to generate some extra cash. Also, indulge yourself in a part-time job to earn for the settlement of the credit card bills. You can also borrow from friends and family if they are ready to offer a lending hand in times of need. However, you should discuss the terms of repayment ahead of time if you are taking this option to settle credit card bills.

Author's Bio: 

Breezy Loans is an online platform for personal loans. It offers loans such as personal loans, emergency loans, cash loans, payday loans, quick loans and more. Apply online, get funding in 24 hours.