Credit cards are the curse of the century. There are some features about credit cards that apparently are being used by consumers. Over 7 million people have used credit cards to get a cash advancement. This is one of the worse ways to acquire money. It is also the most expensive way to use cash. This is the reason for so many new cash advance style businesses popping up in lower income communities. They know that families are struggling to make ends meet and they are ready to catch their slack.
It is legal for companies like these to charge anywhere from 300% – 600%. Yes, you read correctly it was not a typo. In essence you borrow $100 and pay back over $200 easily. You borrow $100 and you cannot pay back the $200, now you owe the percentage of the $200 and not the original $100. So by the time one has enough money its already spun out of control and the loan itself had been sold to a collectors agency. Collector agencies then try to profit off of your debt and they will push you to the max until you pay back the money. Nobody in loan business will work with you, its all about them and you working for them. They do not cut slack. They do not care that you lost your job, house, marriage, kids, health, all they want is their money.
Then you have individuals who love to play with snakes. What do I mean? Well if you have ever used a credit card to pay for another credit card, this is what I call playing with snakes. A snake might let you be close to it and it will make you think that you are its friend, but when you least expect the snake will strike. In a financial terms, lenders really want you to miss a payment or borrow more money to make payments. They win when you are dependent on credit card usage to make ends meet. If you are good and transferring cards to 0% balances, I must tell you that someone will catch your slack. When they do they will charge you a late fee and your interest goes up and your credit gets hurt a little.
Be aware that credit card advances are the most expensive way to handle money.
