With almost $100 billion in debt currently shared amongst Australians, it’s vital that customers understand the difference between borrowing methods.
The most popular ways of borrowing are via a personal loan or credit card. Which is best depends on a number of factors, including what the money is to be used for, according to Adelaide Now.
If the amount is small enough that it can be paid off within a credit card’s more favourable introductory period, that’s usually the best option, says CreditCardFinder.com.au publisher Jeremy Cabral. It’s also more convenient to use a credit card for retail purchases as they do not require any advance planning.
Personal loans generally have the advantage when dealing with larger sums, but they are not as flexible as credit cards. If borrowers are diligent with regard to repayment plans, in the long term they can find cheaper deals with a personal loan.
Borrowers are warned that both forms of borrowing come with risks.
http://www.adelaidenow.com.au/money/banking/how-to-handle-credit-with-care/story-e6fredkl-1226594478695
