Whatever Happens, Don't make any Cash Advances From your Credit Card
If you have a credit card with a high credit limit and cash advance provision, you should read this post and be on guard for the pitfalls of withdrawing cash from your credit card. If you think your credit card is your ally in times of emergency you are totaaaaaaalllllllllllyyyyyyyyyy wrooooooongggg, dear. I also had the same idea before I realized my credit card was a fancy loan shark. Like a loan shark, I ended up paying 20% of the principal amount to my credit card company. Horrors of all horrors.
Call me ignorant and a fool, but I was really taken hook, line, and sinker. Don't get me wrong. I am thankful for the times that I could use my credit card in times of emergency, but as a credit card owner and considering that I pay a membership fee of 1,600 per year, I thought that I have to maximize the use of my credit card, and loaning from it is a service that I can avail of, until I learned that it is a very unbeneficial privilege. If I don't exercise caution when I use it, I will end up paying the original debt plus interest which can multiply if i am not punctual in my payments.
Consider this situation. If you borrow P5,000 from your credit card, you pay a cash advance service fee and finance charge which amounts to P1,000. And this amount appears as charges and penalties in your billing. The funny thing is, when you inquire about this from a customer service, they would not even know how to answer your questions. They would ask you to scan the bill and send it to an email address, but then, they have billed you already so you have no choice but to pay or risk being penalized for late payments.
Credit cards can be convenient but if used indiscriminatingly, it will also be the cause of stress and misery. So the wise thing to do is save up so that in times of emergency, you will not need to borrow money from your credit card or from other financial company or individuals. By doing so you don't acquire additional debts and you are prepared for emergencies.
Call me ignorant and a fool, but I was really taken hook, line, and sinker. Don't get me wrong. I am thankful for the times that I could use my credit card in times of emergency, but as a credit card owner and considering that I pay a membership fee of 1,600 per year, I thought that I have to maximize the use of my credit card, and loaning from it is a service that I can avail of, until I learned that it is a very unbeneficial privilege. If I don't exercise caution when I use it, I will end up paying the original debt plus interest which can multiply if i am not punctual in my payments.
Consider this situation. If you borrow P5,000 from your credit card, you pay a cash advance service fee and finance charge which amounts to P1,000. And this amount appears as charges and penalties in your billing. The funny thing is, when you inquire about this from a customer service, they would not even know how to answer your questions. They would ask you to scan the bill and send it to an email address, but then, they have billed you already so you have no choice but to pay or risk being penalized for late payments.
Credit cards can be convenient but if used indiscriminatingly, it will also be the cause of stress and misery. So the wise thing to do is save up so that in times of emergency, you will not need to borrow money from your credit card or from other financial company or individuals. By doing so you don't acquire additional debts and you are prepared for emergencies.
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