People who are getting cash advance from their credit card is not really solving the problem.
Miami, FL (PRWEB) September 30, 2013
In an article published on September 2013 entitled “The Dangers Of A Credit Card Cash Advance”, Credit Card Consolidation Loan gives out a serious warning to consumers about credit card cash advances. The article discusses how credit cards in itself is already dangerous because it can easily lead consumers to debt. According to the publication, paying for purchases in cash is still the best way to spend.
Credit Card Consolidation Loan encourages people not to use their credit cards to withdraw cash for emergencies. This is not the smart way to prepare for any unexpected expenses. Before the debt relief company went on to elaborate why emergency credit cards are not a good idea, the article discussed first what a credit card cash advance is.
A credit card cash advance is when a consumer withdraws money against the credit of their card account. It can be done through the ATM, over the counter or through a convenience check that will be requested from the credit card company. While there is no application needed, the consumer can only withdraw a limited amount. The article mentions that people with bad credit can use a credit card cash advance instead of a loan.
After defining it, the article listed various reasons why it is dangerous to get a credit card cash advance.
1. There is a cash advance fee that averages 2% to 4% of the borrowed amount.
2. Cash advances taken from an ATM will also be charged with a fee that averages $2-$4.
3. A cash advance interest rate is usually higher than the traditional credit card purchases.
4. The credit card cash advance does not have a grace period. That means the borrowed money is accruing interest the moment it is withdrawn.
Credit Card Consolidation Loan is concerned that people who are getting cash advance from their credit card is not really solving the problem. They encourage consumers to find a better solution to solve whatever is the cause of the lack of funds. If that means increasing their income or reducing debt, that is what the consumer must do.
In case the consumer really needs to get money, the article suggests that the consumer calculate how much the cash advance will really cost them. Not only that, they are advised to be ready with a payment plan that will help them pay off the cash advance as soon as possible. The article also advises consumers to refrain from using their cards until the borrowed money is already paid.
To read more advice about credit card cash advance, click on this link: http://creditcardconsolidationloan.org/the-dangers-of-a-credit-card-cash-advance/. The Credit Card Consolidation Loan website also has articles that can help consumers learn more about credit cards, credit card debt and debt relief.