I'm Invincible

I’m sure everyone’s pretty famil­iar with the word, cash advance. It is defined as aloan taken out against a line of credit or credit card, typ­i­cally impos­ing higher-than-normal inter­est charges.

Most often, the inter­est that is charged on this loan is a fixed num­ber of per­cent­age points above the reg­u­lar rate. Also, there is sel­dom a grace period in which no inter­est is charged. These two rea­sons make cash advance more expen­sive that many other types of debt financing.

But, why use cash advance when it is said to be expensive?

Well, one thing that comes up to mind is “emer­gency”. When you use cash advance, you are sim­ply using your credit card to with­draw cash from your account. Thus, you are with­draw­ing an advance of cash. So, dur­ing an emer­gency, you can eas­ily get money wher­ever you are. Con­ve­nience, that is.

But this money should be really used effi­ciently because, if not, that’s when the worst usu­ally hap­pens. So, use your money wisely to avoid being drowned by your payables.