Unlike regular credit card purchases, interest begins accruing the minute a credit card cash advance is taken. Interest is imposed even if the cash advance is repaid within the monthly statement period.
For those who are unable to repay cash advances within this time, interest can grow to an unmanageable figure.
Rather than sinking further into debt due to interest payments, consumers should consider transferring their cash advance loans balance to another credit card with a no-interest balance transfer feature.
A card like this includes a certain period within which balances can be transferred from other cards and repaid without any interest. If a consumer is able to repay the balance within the designated time, he or she can save money in interest.
The new credit card provider may impose a balance transfer fee so this should be compared to the potential interest payment on the cash advance. In most cases, it will be cost-effective to transfer the balance.
Consumers should not place any other charges on this card and should focus on repaying the cash advance. It is not recommended that balance transfers become a habit because they prolong repayment but if they are needed, a zero interest transfer deal is the preferred arrangement.
