Even after the necessities of the last recession put some of them back on track, Americans are once again overusing their credit cards. Credit card companies, like all lenders, became much more selective with their lending in the aftermath of the recession, but they have since loosened back up. With relatively low interest rates prevailing, Americans, and those in the Hollidaysburg PA area, in particular are using their credit cards for everything from groceries to medical bills.
As an emergency measure, a credit card can be a valuable tool. Financial experts do advise that most people should maintain open credit cards, but their advice deviates from that point on from what actually happens in practice. Instead of paying their cards off every month, as experts admonish that most people should do, many locals build up balances that only grow over time.
In many cases, there are better ways of handling even the financial emergencies that sometimes produce such problems. The Personal Loans Hollidaysburg PA lenders offer, for instance, can be far more economical and safer when it comes to filling in the financial gaps that locals often use credit cards for.
For one thing, the Personal Loans in Hollidaysburg PA credit unions issue will almost always carry far lower interest rates than credit cards do. Even with the Federal Reserve Bank lending money to financial institutions at rates that approach zero, credit cards with double digit interest rates are far from uncommon. In fact, many people in the area maintain rolling balances on cards that carry annual rates of twenty percent or more, a figure that is almost impossible to compensate for over time.
In many cases, it therefore makes good sense to head to a local lending institution like ARC Federal Credit Union when financial needs loom. While it can be tempting to leverage the instant availability of credit card limits, such overly quick decisions can prove to be expensive in the long run. Those who instead seek to take out more attractive personal loans when they have particular financial needs will often find themselves much better off for it in the long run.
