credit_card_jeans.jpgAre you the type who does not realize that you are actually living beyond your means, who regularly incur shortages even in the monthly budgeting of your expenses as compared with your actual income? And are you the type who does not really read the terms and conditions when you apply for and start using a credit card? You could be one of those who will think of withdrawing cash using their credit cards as the next option, supposedly to tide you over the “difficult times”.

To withdraw cash on your credit card is a sure way to bury yourself in more troubles. You could be likened later to somebody caught in quicksand, with perhaps no chance of getting out of your debt problems.

When you use your credit card to withdraw cash extra fees kick in, “extra strong” since these include upfront fees of about 2 to 4 percent of the amount advanced, plus interest charges that are much higher than regular credit card charges. These types of cash advances carry no grace period; interest charges begin to churn as soon as the cash comes out of the ATM machine.

When you get cash advances using your credit card you are actually borrowing money which you can not really afford to pay. This will soon lead you to a situation where your credit rating in that credit card company is so shot up and once that happens, maybe your next move is to apply for a card with another company. Maybe you can manage to do this with one or two companies, but with business records now mostly done electronically, it will not be very long when your trail of unpaid debts will be discovered.

So why risk getting that cash advance with your credit card? The more prudent and smarter thing to do once your card has reached its limit is to forego any kind of purchase, especially those non-essential things which you can well do without temporarily, until the next payday.

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