The first step is to give your finances a quick audit.
This may seem like a quick way to get your hands on some cash, but it’s not the smartest approach, says Howard Dvorkin, a CPA and chairman of financial-services site Debt.com.
“Most cards charge you a transaction fee, so right out of the gate you are getting hit by a fee,” he adds. Depending on your card, that fee can range from 3% to 5% of the amount being advanced. On top of that, your credit card company will charge interest on the advance, which is typically higher than your regular purchase APR. And the cash advance starts accruing interest immediately, compared with the grace period that you receive with regular credit card charges, says Matt Schulz, chief industry analyst at CompareCards.
That may be tempting to fix a short-term crisis, but can create longer-term problems, says Credit Karma’s Lin. “Your money should be compounding in a retirement account, which means it’s only growing over time,” he notes. “So, the money you take out today could have been worth much more decades from now.”Instead of turning to high-interest loans or drawing down your retirement savings, there are other options that can carry lower interest rates and risks, financial experts say.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
19 Confessions About Sex and Desire During the Pandemic That Will Make You Feel Less AloneWho else can’t decide if they’re horny?
Leer más »
Cartels, crime rings exploit supply shortages during COVID-19 pandemic, authorities sayA volunteer group associated with a company owned by El Chapo's daughter has been handing out essentials during the COVID-19 pandemic.
Leer más »
How To Make A Zero-Based Budget Work During COVID-19The COVID-19 outbreak may have you rethinking how to manage your spending and income. Creating and sticking to a budget is essential, but there’s more than one approach you can take. Zero-based budgeting is one option if you want to be able to account for every dollar you have coming in and going out each month. […]
Leer más »
Incoming college students consider taking a gap year instead of school during Covid-19High school senior Alina Ikhmayes says that if campuses remain closed in the fall, she may defer her acceptance to NYU. Here's why many college-bound seniors are considering taking a gap year.
Leer más »
French court upholds ruling limiting Amazon deliveries during COVID-19 crisisA French court on Friday rejected U.S. online retailer Amazon's appeal against a ruling that restricts what it can deliver during the coronavirus crisis.
Leer más »