The financial Murphy's Law has a way of creeping on us at the worst times. We do not always see car repair bills, outrageous medical bills or other huge expenditures coming our way. Furthermore, many people are not flush with cash or savings to deal with these situations at a moments notice. Fortunately, or unfortunately, there exists some ways for people to get through these situations, and one of these is the ability to borrow cash on your credit card. But, is it a good idea?
The Good News The good news is that getting cash from your credit card is pretty easy. You can take it down to an ATM machine or bank and withdraw money just like you would from a bank. There is no long waiting period associated with other types of loans. You can have your money within minutes. The Bad News The downside, however, is that the interest rate on cash withdraws is usually higher than typical purchases. Repaying the amount is more difficult more of your payment is being eaten away by interest. If you are already in a tough financial situation, and making minimum payments, then it could take years to repay the money you took out. And, the money you spent on that withdraw could end up being enormous. The convenience you got from taking out a loan with no guarantor could be exactly what the credit card company wants. They offer you the promise of quick cash easily. But, they are enjoying their great profits at the expense of your financial hardship. However, the situation can still not be avoided at times. If you still do have to take out money on the credit card then consider these ways to get out from under it. Make Fast Repayments Pay off the amount as quick as possible. Any money that you get should be sent to them to reduce that principle so interest is not eating away at it. See if you can qualify for a balance transfer to another card. Many will offer 0% transfers. This will give you the ability to make lower payments, but more money goes to principle rather than interest. Sometimes borrowing money against the credit card cannot be avoided. But, be wary of doing it for unimportant things. Try to do it only if there are no other alternatives available to you. Otherwise, you could regret it for years to come. For more information relating to credit cards and how they work, please visit the following link - http://en.wikipedia.org/wiki/Credit_card
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