Credit card cash advances are an appealing way to get out of a tight spot quickly.
Unfortunately, they can become an extremely bad habit.
While cash advances are convenient when someone is handing you money, they can become very inconvenient when more and more of your weekly paycheck goes to pay off a debt months after the original cash emergency has passed.
For most of us, money is one of the biggest constraints we face.
Many agencies offer advances of some sort or another, but you must understand the price associated with that money, lest you bury yourself in debt.
A cash advance is an advance of money to a person in urgent need of money, to be paid off later.
Among the many forms of advances available to you are credit card cash advances, whether a simple ATM withdrawal or a check issued by a credit card company.
Among the drawbacks of credit card advances are the facts that there is usually a fee to be paid and that you have to pay interest on advances from the date they are issued rather than from the end of the billing cycle.
The interest rates on the borrowed money can be a few points short of usury.
Another option, sometimes useful for larger sums of money, is the cash advance check from a credit card company, which can also be used to make payments to payees who do not accept credit cards in the conventional manner.
However, always compare the costs associated with different borrowing methods, since many forms of cash advances including those from cards can carry costly fees and interest charges.
The particular terms associated with your account can be found on the back of your monthly statements.
This may be your best option if you are offered very favorable terms; as ever, the key is to "look before you leap.
" If your cash advance comes with harsh terms, it may be sensible to transfer the balance onto a card with low balance transfer rates.
When considering such a move, be aware of the policies of both cards involved; sometimes balance transfers are considered a form of advance.
It is possible to use credit card cash advances to fund large investments, though one must be aware of the risk of debt if an investment goes foul.
For one in urgent need of money, credit card cash advances can be a lifesaver.
Credit card companies are among the multitude of agents quite willing to offer fast money -- for a price.
Just be sure not to make a habit of it, or you'll be more broke than when you first thought you needed the money.