like, if i owe a lot of money to 3 or 4 credit card companyes (like 4k each) on cash advances I know the interest rates are higher by a lot but is there a difference if the debt was for regular purchases? will they come after me more than if they were’nt cash advances? can I still file bankrupcy to get out of the debt?
Tags: A, Between, Difference, Is, There
Absolutely! Your cash advance debt is billed at a much higher rate, and your payments to each card will be applied to the lower debt rate.
Say you cash advanced $1000 at 24.99% APR
but had an existing balance of $3000 at 9.99% APR
When you get ready to pay the bill, and attempt to pay the total cash advance balance, you’ll be in for a rude awakening. The credit card will apply the $1000 (+ fees) to the lesser APR, and if you continue to take out cash advances, eventually all of your debt will consist of the cash advance rate.
ALSO, your cash advance fees are more than likely immediate– unlike carrying a traditional balance where you can avoid the finance charges if you pay before the bill date. Cash advances should be a very last ditch, emergency option. They will increase your debt tenfold if you’re unable to manage them.
why would you take cash advance on a credit card for one thing the money is not yours. and to be so much in dept dont make sence. but you can get help to bring down the payments you make and the interest. but its not that easy to file bankrupcy. talk to a lawer and see what thay may say. fileing bankrupcy in on your credit for ever.
yes their is a difference. people that don’t pay cost people that do pay money we have to pay in higher prices for what dead beats don’t pay