There is never a good time to overspend on a credit card, but in some cases it’s the best way to secure the funds you need.

For example, if you’re facing a major car repair or medical bill, you may need money in a hurry. While you have many options, some are better than others.

During your search, you may come to believe that a payday loan is the best way to proceed. Not only can you get the cash you need, but there’s no wait period.

Of course, there’s more than what you see on the surface. The primary drawback of a payday loan is the super high interest rate.

Here are three reasons to choose a credit card over a payday loan:

• Reputable financial institution. With a payday loan, you never know who you’re dealing with. Since reputation and reliability are important when borrowing money, you never want to take a risk. You can be rest assured that your credit card company has a better reputation than any payday lender you come across.
• Lower interest rate. Even if you have average credit, it’s very likely that the interest rate attached to a credit card will be less than a payday loan. Payday lenders can do pretty much anything they want in regards to terms and conditions, so you really need to be careful about what you’re getting into.
• Just as convenient. If you already have a credit card, you can quickly use it to deal with anything that comes to light. You don’t have to contact your company, unless you’re interested in a cash advance.

Before you opt for a payday loan take the time to compare the finer details to a credit card. You may come to find that using a credit card is the better way to proceed, thanks in large part to the reasons detailed above.

As your parents age, it’s only natural to become more protective. This definitely holds true in regards to their finances, as you don’t want them to be taken advantage of.

Unfortunately, there are people out there who prey on the elderly. They realize they’re no longer as sharp as they once were, and are more likely to make poor financial decisions.

While you can’t be everywhere at all times, there are many steps you can take to protect your parents from loan sharks and predatory lending as a whole.

1. Educate Them

There’s a good chance your parents are still living in the past, not exactly realizing that there are people out to make a dollar off of them.

Do your part in educating them about loan sharks, predatory lending, and any other scams that could impact their finances.

The more information you provide the better off everyone will be.

2. Review Everything

You don’t want to come across as controlling, but let your parents know you’re willing to review every financial move they make (within reason, of course).

For example, before they secure a loan, help review lenders and terms to ensure that it’s a legitimate deal from a reputable lender.

3. Discuss Options

There may come a time when your parents feel cornered. They need money, and are willing to fall prey to a loan shark in order to get it.

You should explain that there are many financial options to consider, ranging from credit cards to personal loans among others.

There’s never a good time for anyone to feel that they have to do business with a loan shark.

It’s a scary world out there, especially when it comes to money. If you want to protect your parents from loan sharks and predatory lending, the three tips above should help you do just that.

Despite the disadvantages when compared to other forms of credit, there will always be people who turn their attention to a payday loan when they need money.

While there is nothing wrong with considering all your financial options, especially when searching for a loan, it’s important to do so with a clear mind. Without this, you could find yourself making an uninformed decision that costs you more money and adds stress to your life.

Here are the three primary reasons why there will always be people who use payday loans:

• Simply put, it doesn’t take long to secure a payday loan. In fact, with a few minutes of time on your side, you can complete the necessary paperwork and obtain the money you need. This alone is reason enough for some people to go down this path.
• Borrowers are always looking to do whatever is easiest on them. And with a payday loan, convenience is the name of the game. You can visit a local storefront or find a lender online. From there, it once again comes down to speed. There’s not a lot of paperwork and there is no waiting around.
• Few requirements. With a bank loan or credit card, there are a number of requirements you need to meet in order to qualify. With a payday loan, this isn’t the case. Generally speaking, as long as you have a job you’ll qualify.

So, what’s the problem with securing a payday loan? Despite these perceived benefits, you need to understand that there are some serious pitfalls.

At the top of the list is the cost of a payday loan. Here’s what the Consumer Financial Protection Bureau has to say about this:

“Many state laws set a maximum amount for payday loan fees ranging from $10 to $30 for every $100 borrowed. A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400 percent. By comparison, APRs on credit cards can range from about 12 percent to about 30 percent. In many states that permit payday lending, the cost of the loan, fees, and the maximum loan amount are capped.”

Even though you can find some benefits of a payday loan, the high cost should be enough to point you in another direction.

Do you have any experience with this type of loan?

As you take on more and more debt, you can be rest assured that your financial situation will change in many ways.

Mounting debt has a way of making you vulnerable to poor decisions. Subsequently, as you make these decisions, your situation worsens and the cycle continues.

Here’s an example. You continue to use credit cards to get through each month, despite the fact that you understand the negative impact it’s having on your finances.

At some point you realize that your credit cards are maxed out, thus leading you to explore other avenues for keeping your head above water.

For some, this means one thing: searching for any type of loan that allows them to get their hands on more money.

Since traditional lenders are likely to shoot you down, as a result of your current debt load, you find yourself considering loan sharks and payday lenders.

Your vulnerability during this time makes you believe there’s nothing wrong with this decision, as you need the money to live.

Unfortunately, going down this path is only going to make your situation worse. Here’s why:

• A loan shark will only lend you money with a high interest rate attached to it
• You’re not doing anything to improve your situation, but instead making it worse by taking on another loan
• Once you use the money you’ve borrowed, you’ll find yourself once again searching for more (this is a cycle you need to break)

You’re not the only person who is facing mounting debt and all the stress that comes along with it.

While it’s easy to take on more debt as a means of holding things together for a little bit longer, this approach will eventually catch up to you.

You may be vulnerable during this time, but that doesn’t mean you should continue to make poor financial decisions. Once you put your foot down, you’ll be surprised to find that there are many legitimate strategies for clawing your way out of debt and better enjoying your life.