|
|
Cash Advance
The Cash advance industry has been studied by researchers interested in how short term loans affect the
borrowers who make use of them. In this study, anyone who took out a cash advance ansered questions, and
gave information regarding their personal finances and alternatives to a short term loan available to them. In
the majority of cases, a cash advance turned out to be the more economical choice, given the more expensive
alternatives. How can this be? Well, if you consider a $30 late charge on top of finance charges that can
climb upwards of 20%, you're looking at hefty charges on a credit card bill that's not paid. Compared to this,
an average of a $15 fee for $100 borrowed in a cash advance is more economical in the short term. And that's
not even considering the damage done to your credit score every time you miss a payment on your bill.
| | |