Every once in a while, most people find themselves faced with the need for urgent cash due to poor planning or naturally unavoidable circumstances. For holders of credit cards, there could be an option of getting your hands on some cold cash within a short time. As much as credit card may come to our rescue in times of need, there are often tricky aspects associated with the cash advances.
When should I consider going for credit card cash?
As earlier stated, credit card cash can be very helpful if you find yourself in between a rock and a very hard place financially. Since some situations demand instant action, you may be short of options when a problem befalls you leading you to the nearest possible remedy; a credit card cash advance. It is however important to note that credit card cash can always lead to serious debt problems if not carefully sorted out in due time. Before you jump into any credit card cash advance deal, take a good look at the terms and conditions and most importantly the interest rates that will be applicable. It is always wise to verify the interest rates since in most cases they are likely to be higher than the ordinary credit card transaction charges.
Another important thing to consider is your possible repayment period. Protracting the payment over a long term may lead to huge interest rates since many credit card service providers will charge you the hefty interest rate even if you pay your debt before the end of the credit card payment date. In simple terms, there is never such a thing as grace period when dealing with credit card cash advancements.
Main disadvantages of credit card cash advance.
The most glaring problem associated with credit card cash is the interest rates that are usually charged on the cash. Besides the interest rates, there is never any grace period meaning you may get the advance today and pay for it tomorrow but the interest rate charged on it will not change at all. As a result, you should only consider going for credit cash as a last option. The other disadvantage may arise from the use of an ATM card to get your credit card cash. The ATM management companies will always add more costs to your transactions further aggravating the already wanting situation. In conclusion, it is important to note that credit card cash is a very expensive method of financing your daily needs. If for example you find yourself in constant need of credit card cash, that should be an indicator of poor management strategy and you should sort some qualified assistance towards solving the problem before it gets overboard.