if im unemployed and have no means of paying a credit card for several months until i get a job, should i take the remaining credit out of the credit card in cash, put it in my checking and pay it that way for now?
2007-09-14 09:20:15 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Been there, done that. Don't do it!! Call the credit card company and explain your delimma. They will allow you to pay only the interest for up to three to six months. In some cases, they may even allow you to skip two or three payments altogether to allow you time to find a job and resume payments again.
2007-09-14 09:43:05 · answer #1 · answered by Wolfie 2 · 0⤊ 0⤋
Mmmm.....I wouldn't. The interest rate for cash advances are anywhere from 2-3 times the interest rate of purchases. I would call each creditor to see about temporarily halting the payments for like 3 months with a guarantee that you'll pay more than the minimum payment for the next subsequent 3 months.
Otherwise, you might want to take out a personal loan at your bank as those loans are much lower in interest than a cash advance. Also, if you have a vehicle title that would give you some leverage as well.
And, most importantly, I would use this lesson to not stay in credit card or any other debt should this situation arise again. People often forget that they are just as vulnerable as you are to be unemployed and not able to meet financial obligations...
~jaz~
2007-09-14 09:32:27 · answer #2 · answered by Anonymous · 0⤊ 1⤋
No! Cash advances usually have a much higher interest rate than those for purchases. Try contacting the credit card company to work something out such as lower payments or even a deferral. Taking cash out will only put you that much deeper in the hole.
2007-09-14 09:29:54 · answer #3 · answered by Eric D 3 · 0⤊ 0⤋
Typically cash advances have a higher interest rate than regular credit card purchases. Try calling the credit card company up, typically they are nice and helpful.
2007-09-14 09:31:38 · answer #4 · answered by Manny 4 · 0⤊ 0⤋
No, that will only make it worse. Your minimum payment will go up and you'll pay more interest.
Consider having a garage sale, pawning something, collect alum cans to bring in some cash.
2007-09-14 09:30:39 · answer #5 · answered by bdancer222 7 · 0⤊ 0⤋
A loan consolidation with low interest is the best I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogspot.com/2007/07/loan-consolidation.html Good luck!
2007-09-15 10:53:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋