The Hidden Fee in Credit Card Cash Advances
There are many advantages of getting cash advances; however, you must be practical hen you take out a cash advance loan. So many people find that a vicious cycle of financial dependence is created by their abuse of cash advance loans. Most people enjoy knowing that there is always a backup that they can use when they are in financial crisis, and this backup will help them alleviate their problem before it becomes a serious issue.
The most financially crippling of all cash advances is the credit card cash advance. Many people arenít aware that there is a fee attached to those extra cash advance loans that they take out. These fees normally kick in the minute you use your credit card to take out extra money. An amount of about 2% - 4% percent is the upfront fee that many credit card cash advances carry. The interest rate is also higher in credit card cash advances than in regular card charges.
Often people donít care about the extra fees that the cash advances carry because they are only interested in the convenience that cash advance brings. This sort of mentality normally leads people into debt, and suddenly instead of alleviating the problem you are creating another one. With credit card cash advances there is no grace period -- the fees start mounting up the minute you see the sign onto the ATM requesting to take out cash.
The reason that credit card cash advances cost so much is that loan companies like the bank say that cash transactions cost more than credit card purchases. If you are aware of this, you are able to combat the effects of using a credit card cash advance. Donít be gullible and assume that you can deal with it; it will only lead you to file for bankruptcy and then you will be black listed.