New Credit Card User w/ Cash Advance Question & bad at math!?

Question

I want to do a cash advance for $200 and i have a citibank student credit card. I know they're not good but i NEED the cash. If the percentage i have to pay back is about 23% about how much am i gonna owe them in the end?

Answer 1

If you make the minimum monthly payment ($10 per month) on $200 at 23% APR, in the end, you'll pay $240.00 for that $200 advance and it will take you 24 months to pay off. That equals $40 in interest payments.

Be debt smart, DON'T USE CREDIT CARDS FOR CASH ADVANCES. You'll likely make a habit of doing it once you start (which is what CitiBank is hoping for). The more you 'borrow,' the more you'll owe.

READY FOR A SHOCK? Hold on to your hat.

Let's say that your $200 advance is just the first of 5 total $200 advances you'll make, because you'll get hooked on making cash advances. Your new advance debt total is $1,000.00. Let's assume you can only afford to double your payments to $20 per month. At that same interest rate of 23%, it will take 146 months to pay off that $1000. That's more than 12 YEARS! The real SHOCK... (as if 12 years of payments aren't enough), the total interest you'd pay over those 12 years on that $1000 of principal debt is $1,920.00!!!

You can see why credit card companies love to give you credit. They are hoping you'll use it and will only make minimum payments. DON'T BE DEBT-DUMB. Educate yourself on debt management and stick to a strict monthly budget. As soon as your budget will allow it, by a financial book, such as Suze Orman's "The 9 Steps to Financial Freedom: Practical and Spiritual Steps So You Can Stop Worrying." It will TEACH you how to eliminate the need to use credit cards for cash advances.

People don't realize how dangerous credit card debt is, yet, they continue to spend beyond their means. STOP IT!

http://www.bankrate.com/brm/calc/creditcardpay.asp

Answer 2

There is usually a fee for cash advances in addition to the interest.

Is that money for something your really NEED or something you WANT. If you don't have the cash, spend less on holiday presents.

Answer 3

Depends how fast you can repay it. If you repay it immediately, it'll be $246. For every time billing period you don't repay it, you'll pay $ balance times 1.23. So in month two, you'll have 2 periods of interest accumulation. The amount will be $246 x 1.23 or $302.58. Compound interest...it can be great for retirement or awful for debt. You'd best pay it off ASAP.