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Submitted 37 days ago...

zsikder

zsikder

Brain (7,111)

How to Pay Back a Cash Advance Quickly?

How to Pay Back a Cash Advance Quickly?

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Answer 1 / 1 - Submitted 18 days ago...

bzkhan

bzkhan

Expert (841)

A cash advance is one of the most dangerous financial transactions you can opt for other than a payday loan. Due to the fact that cash advances have much higher interest rates than other transactions on your card, if you are not careful, you can quickly find yourself overwhelmed by credit card debt from one cash advance.
Step 1
Take your cash advance out on the card with the lowest balance--not the one with the lowest interest rate. The reasoning is simple: Your payments are applied to your balance first and then your cash advance. The lower your balance on the card, the closer you are to being able to pay it off and begin making payments on your high interest cash advance.
Step 2
Alter the way you make payments. You may want to pay twice a month or pay an extra percentage more than the minimum payment each month. Whatever you choose to pay, you must pay more than the minimum. Although credit card companies are now required to apply at least a portion of your payments to your principle balance, that portion can be $1 or less, depending on the company. You'd never pay off a cash advance at that rate.
Step 3
Limit your cash advance to only what you need at the time. It's tempting to take out the full amount you are allowed. Unfortunately, you do have to pay it back later and the amount you have to pay back is substantially higher than the amount borrowed. Take only what you absolutely have to have--and only in emergencies.
Step 4
Wait to make any new purchases on the car until you cash advance is at least partially paid off. Payments you send will be applied to you regular purchases and deferred from your high interest cash advance.

source: http://www.ehow.com/how_5464039_pay-back-cash-advance-quickly.html

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How to Pay Back a Cash Advance Quickly?

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