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I've learned my lesson!


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I did think unthinkable- I took out a cash advance from my Wamu Visa for $900

My interest rate just shot up to 24.4%! I want to kick myself.....

No more cash advances for me- EVER! :ah:ah:ah:

I have no idea as to how I'm going to get them to lower the interest rate back down to 11%.... xhitwallx

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Keep in mind, that there is normally a higher interest rate that applies only to cash advances. Normally, your interest rates for purchases will remain the same. At least that is the way I understand most of my cards.

Agreed. If you still have a copy of your Terms and Conditions, it should state the APR info in there. There's typically a separate APR for cash advances than there is for purchases, as Freak said. :)

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That is correct, all cards have 2 different interest rates for the most part. One will be for purchases, the other will be for advances. Now one more thing to consider as there is a change in interest rates there is also a change on how it is calculated. When you're charged interest for purchases you don't get charge till after 20-30 days. Now the interest for cash advances begins as soon as you receive your money, no 20-30 day deal there for accrued interest.

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There are two schools of throught on snowballing your way out of debt. One is to start with the card with the lowest amount, another is to start with the one with the highest intertest rate.

In this case, I'd pay off that cash advance first and understand that if there is already a balance, they will apply any $900 you send to the previous balance first so they can keep charging you 25% on the $900 cash as long as possible.

You can try to send a letter explaining where you want the money to go, but the card agreement will probably trump any attempt to subvert their evil greed.

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I'm going to pay the entire cc balance over the next 2 paychecks. And, hopefully, at ground zero that will restore my prior interest rate.

Unfortunately, I did this incredibly stupid thing now of all times- before Christmas, and I had to tell my DH....yeah, he's not so happy.... lesson learned...

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I'm going to pay the entire cc balance over the next 2 paychecks. And, hopefully, at ground zero that will restore my prior interest rate.

Unfortunately, I did this incredibly stupid thing now of all times- before Christmas, and I had to tell my DH....yeah, he's not so happy.... lesson learned...

Don't worry about it, your interest rate will go right back. You only get the hike for cash withdrawals hun. I've had to do it a few times and once I paid the card off it went right back to the correct IR.

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There are two schools of throught on snowballing your way out of debt. One is to start with the card with the lowest amount, another is to start with the one with the highest interest rate.

A third is to start with the card with the highest min payment to balance ratio as that frees up more cash flow sooner.

In the long run, highest interest first will always save you $.

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