Americans are increasingly finding themselves in debt. You do not need to look too far into any financial publication to see the advice warning consumer to be more cautious about their financial obligations. To make matters worse, many Americans love plastic. Charging “extra” expenses to a credit card has almost become a way of life for some people. What makes this habit so bad is that consumers generally regard their obligation to pay this money back in terms of the low monthly payments of credit cards. Paying the minimum amount is the surest way for credit card companies to get rich as they draw off the accumulated interest each month. The credit card no longer becomes something to use for extra cash but a continuing cycle of debt. “Extra” expenses are charged to it, interest accumulates, and, as low monthly payments get bigger, consumers find themselves spending money on their credit card bill that they were struggling to manage beforehand.

Payday loans have been on the receiving end of some negative criticism themselves. However, they differentiate themselves in one very important area, the debt does not continue past your next paycheck. Whereas a payday loan is squared away after your next paycheck, credit card debt can continue for years. The convenience of credit cards makes them a dangerous tool to have at hand when cash is tight. A payday loan, while useful during a cash emergency, requires a much higher level of responsibility on the part of the consumer. So, Republic Bank wants to know how you handle financially difficult moments, and given the choice what are your thoughts on taking out a payday loan vs. taking out a credit card?