Finding Out About Payday Loans

298e50baa36a3bbaf07f21079ca86d6c7c92a9c1 When you’ve got money problems, taking out a cash advance on your credit card is one of the easy solutions, but you should know that it can be a risky business, full of unseen potholes that, if you are unaware of them, can land you neck deep in debt, as surely as putting your foot into a hidden rabbit hole can cause you a broken ankle.

A credit card cash advance is expensive; the fees are high, often from one to four percent of the sum borrowed. Then there are the interest rates, which are higher than if you use your card to pay for something. If you don’t repay the loan quickly, the sum plus the interest quickly mount up. When you borrow on your credit card, the interest starts as soon as you withdraw the money. Also you will incur bank charges for using your card in this way.

Still, it’s a less expensive way of getting a cash advance than from a payday loan lender. All you have to do is to balance your loan in the right manner.

First of all, before using your credit card for a cash advance, re-read your contract and carefully check the terms and conditions. If there’s something you misunderstood in a clause when you took out the agreement, call the card company and ask them to clarify things.

Only borrow from your credit card when it’s for a real emergency. If something urgent crops up, like unexpected medical fees, using your credit card to get a cash advance is a good reason; buying a new set of golf clubs isn’t.

Make sure that you understand what your limits are. You already know what your credit limit is, but your cash advance limit might not be so high. If you overspend it, you’ll land yourself in the strange and rather unpleasant world of high daily penalties and higher interest rates.

Don’t borrow more than you really need to. Yes, it’s tempting to think that with a few dollars more you can buy those golf clubs, but don’t forget that what you borrow you must repay with interest. It would be a bit hard explaining to the kids that you can’t afford to take them to the zoo because you’re paying twice the price of golf clubs in interest rates.

2f251c2310d22ea22a67d5282695adfd2113c8a7 If you decide to go ahead and take out a cash advance on your credit card, try to steer clear of using it again until you’ve paid off the loan.

Before taking the large (and expensive) step of using your credit card for a cash advance, ask your boss for an advance on your next pay check, or try to borrow from your family. If you’ve got a good work record your boss will agree – if it’s not a habit with you to borrow against your next pay. If you have good relations with your family, they’ll probably come up with the sum you need – and don’t forget, your family doesn’t charge interest!You can also visit for money expert advice and latest reviews from real borrowers.

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