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reliable information on credit cards - online investing - personal loans - owning and operating your own home business. indepth information from professionals in their field. dont forget to check out our links to the best sources on the internet, these days information and research is critical to making the best educated decision to suit your needs.

Friday, August 11, 2006

How To Save Money On Credit Cards



Some credit cards offer a cash advance option. But how good
a deal is this?

Not very. In fact, it can be downright expensive.

Why?

Because every time you use your credit card to withdraw
case, more fees kick in:

- Cash advances can carry an upfront fee of 2 percent to 4
percent of the amount advanced.

- The advances have a higher interest rate than regular card
charges.

- Interest charges begin to mount as soon as the money comes
out of the ATM.

- Many issuers also require you to pay down the balances for
purchases before you pay down the higher-interest cash
advance balance.

Here's an example of how these fees kick in:

Assume you bought a television for $500 on your card and
then took out $50 in cash. Even though you pay the $50 back
the next day, you still lose your interest-free period
because the credit provider deems you pay the cash back
last.

As a result you will still owe the $50, but you will now
only owe $450 on the $500 worth of purchases.

You'll continue to forfeit your interest-free period up
until you have completely paid back the full $550. Any
future purchases will still be ahead of the $50 in the
payback line.

The lesson is simple: Avoid using your credit card to
withdraw cash wherever possible. You'll save money as a
result!

ABOUT THE AUTHOR

Paul Davis is financial writer and contributor to http://debt-elimination-4u.com Stop by and pick up your FREE guide on how to get out of debt now at:
http://debt-elimination-4u.com/get-out-of-debt.htm

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