From , Jeffrey Arevalo, financial expert at GreenPath Financial Wellness, provides details about the pros and cons of short term loans such as credit card advances and payday loans.
In a time of financial challenge, many people look to get cash into their budgets as fast as possible. For those that don’t have readily available savings, people might consider using a credit card cash advance or payday loan.
The article looks at the options of getting quick cash using a credit card cash advance or a payday loan, both of which lets people get money into their hands very quickly.
It’s important to look at the consequences of these options, as both penalize borrowers who can’t pay back the debt promptly.
The article looks at the pros and cons of both options as well as alternatives that could help you avoid the negative effects of a high-interest loan.
What Is a Credit Card Cash Advance?
A credit card cash advance is a loan from your credit card that allows you to get instant cash, whether it’s from an ATM, a bank withdrawal, a check or another method.
The fees can be a burden. Expect to pay a cash advance fee, typically ranging from 2% to 8% with a $10 minimum – and an interest rate that’s at least a couple of percentage points higher than what you would be charged for purchases. Read more