AD | AH, Credit Cards. I have a love/hate relationship with them. While yes, they have the ability to save you in a pinch, we often use them at whim and that lands us hot water and swimming in high-interest rates.
It seems that many learn these lessons about credit cards the hard way. Yet, WE ALSO KNOW how NOT to use them, and we do it anyway. I’ll admit, I’ve opened up a credit card during the holidays to help with gifts, or pay the bills, and even to get myself something because of the discount you get for doing it! Crazy, right?
If you’re short on cash an opening a new credit card seems like a stress-free, easy way to solve your issues, but please keep in mind that there are alternatives. I’m sharing some alternatives in hopes that you may see that there are other alternatives out there that might be better than a credit card.
There is nothing like hard work and saving money! I mean, isn’t this what our savings are for? EMERGENCIES!? This isn’t always the easiest option, sure, especially when you are in a pinch and need money immediately that you just don’t have.
I can tell you all day to just wait to buy things once you have saved up for them, but what happens if there’s major repair on your home? Or your AC goes out during peak hours of Summer?
Things like this are sometimes hard to save and budget for if you are not in the best place financially, or you’re like me; struggling to have savings worth dipping into! But the option is there and should be considered before a credit card.
A Collateral Loan
A collateral loan is a great option for those who don’t want to get a credit card, and/or, for those who are trying to decrease their high-interest credit card debt.
What is a collateral loan, you might be wondering? Let me explain: A collateral loan is typically a short-term secured loan against valuables, such as jewelry. These types of loans are best suited for people that need quick cash for 30 days or less; so it’s a perfect option for those who need to fix a leak or replace their HVAC in the middle of the summer as I mentioned above.
Where can you get a collateral loan? There are plenty of options. For example, here in Georgia in the heart of Buckhead, Chapes-JPL has been offering low-interest loans on gold, silver, diamond, platinum jewelry, and other valuables for over 38 years. They are known for offering the lowest interest rates in the industry. They take your privacy seriously by operating from a private and highly secure office, as well. Your collateral is insured and stored in bank vaults for free, for added peace of mind.
Chapes-JPL issues loans on a 30-day period, with the option of paying back the loan sooner without a prepayment penalty. In addition, their clients also have the option to extend their credit for an additional 30-days. Chapes-JPL is a great way to get started financially, especially if you are trying to pay off high-interest loans.
Good Ol Fashioned Layaway WITH A TWIST.
Credit Cards says, “Layaway – the old-school financing option that usually shows up just around the holidays – is also having a moment.”
While large retail stores still offer this option during the holidays, there’s a new online layaway program, that many large retailers are using:
Fashion giants Anthropologie, Free People and Urban Outfitters (all owned by the same company) announced in May that they’ve begun offering an online layaway program called AfterPay, that allows shoppers make payments over time for their purchases, without owing any interest.
AfterPay lets users order their items for immediate delivery, even though they haven’t finished paying for them. But if shoppers miss any payments, they’ll owe additional charges.
Here’s how Afterpay’s CEO Nick Molnar explains the program, which “is particularly relevant for millennials who are reluctant to use credit cards and other forms of traditional finance”:
“Afterpay helps shoppers get over that initial price hurdle by offering a platform to help budget for things that they want without needing to take out a loan or open a credit card,” Molnar said in a news release.
I’ve used it plenty of times myself, and it has changed the way I shop. There are other retailers out there that use similar programs, such as AFFIRM. The difference is some retailers do have a very small interest charge; usually at 3%. Check the retailer’s site before checking out if they offer it – and shop with ease!
Have these tips been helpful to you? How do you keep yourself from sinking in credit care debt?
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Tonyalee is an avid reader, gym junkie, coffee addicted workaholic and blogger. Be sure to follow on Twitter, Facebook & Instagram for random shenanigans.