PAY DAY LOANS VS CREDIT CARD IS IT WORTH IT?

taken from the digeratimind.com

It is the holiday season and you’re probably trying to decide, especially during this recession whether or not to get a new credit card or get one of those payday loans. Where I would definitely tread carefully especially when it comes the payday loans. The reason being, that while it sounds very exciting of very convenient to simply walk into a payday loan Center with your car title or pay stubs you need to know the risk involved in getting a payday loan.
According to Wikipedia “A payday loan (also called a paycheck advance) is a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday. The loans are also sometimes referred to as cash advances, though that term can also refer to cash provided against a prearranged line of credit such as a credit card (see cash advance). Legislation regarding payday loans varies widely between different countries and, within the USA, between different states”
Sounds easy doesn’t it? The main question comes in when you can’t pay that payday loan when your next payday comes along then what?  not only do these loans, with a high APR when you default you could end up paying 600% more than what you borrowed possibly! also be aware that you will become charged it transactional . apayday_loansFor example, a $100 one-week loan, at a 20% APR (compounded weekly) would generate only 38% of interest!!! so before you think about taking your paystub all your car title to the pay day loan center. Be very sure can pay back prior to the due date or skip  that gift that you planned to buy the season.
Now what if you have a credit card? Should you use  that card instead get an advance loan or should you apply for a new credit card? you should only apply for your credit card in my opinion if that credit card is offering you a 0% interest rate based on your credit. You can then transfer the balance on your current credit card to the new credit card and make sure you pay it off within the year. You already have  Major credit card debt, again I would advice you to pay cash for what ever your purchase.
So in essence, the question isn’t whether or not a payday loan is better than using a credit card or vice versa. The real question should be can you feel the loan prior to the due dates either way once you answer that question for you well on your way to financial independence from loans and or debt. What I your thoughts? what are you doing to be rich today?