Taking a cash advance make seem a perfect solution if you are faced with a financial emergency and need quick cash. Most people sign up for this short term loan as it offers a quick fix to their financial dilemma. One of the important things that you need to remember is that this perfect solution comes with a high price. You can land in serious financial trouble if you rely on cash advances.
Danger 1: Exorbitant fees
Cash advances are promoted by credit card companies to get quick access to cash in emergency situations. These transactions are often accompanied by convenience fees. In addition to this fee, you may also have to pay ATM fees when you withdraw cash from an out of network unit. Every aspect of the process has some fees associated with it and this makes it costly.
Danger 2: Interest rates
The high interest rates that apply are another danger of cash advances using a credit card. The annual percentage rate (APR) is always higher and is usually double than the percentage that is normally charged. Most consumers are not aware of the