Credit Card Tips - Avoid Cash Advances!

I often have people asking me about cash advances. They explain that they are really handy when you need some cash and that they still have the 55 days interest free to pay them off. This is what I tell them:

The Interest-free period on your credit card accounts do NOT apply to cash advances. In almost every case, you will pay interest on that cash you took out right from the time you grab it from the ATM. Some banks even charge a fee of 1.5 per cent of the withdrawal. That's a $15 fee straight away on a $1000 credit card cash advance.

I often get promotional material from my financial institution telling me I can have so much cahs straight away. The best way not to get sucked in to this little ploy is to throw your credit card pin away (burn it or something) before you learn it - then you can't get a cash advance anyway!