2023-08-31 20:26:35
How much does a credit card charge for a cash advance?
Credit card cash advances are an option to consider in an emergency, but it is important to use them responsibly. | Photo: ColprensaCaja Social BankBancoomevaCoopcentralBanco FalabellaBanco PopularFinanciera Juriscoop
The highest fees are found at banks that charge a fee for making advances at their own ATMs. These banks are:
AV Villas ($12,750) Bogotá Bank ($11,600) Davivienda Bank ($11,000)
The most expensive rates are found in banks that charge a commission for making advances in branches. These banks are:
Scotiabank Colpatria ($18,920) Banco de Bogotá ($18,255) AV Villas ($17,000)
“The credit card is a good product, massive and easy to acquire, and cash advances should be used with caution, especially in these times that generate expenses. It must be kept in mind that the usury rate is at a very high peak”, says the expert and consultant in banking and insurance, Wilson Triana.
How to avoid high cash advance fees?
Credit card cash advances are a convenient way to get cash in an emergency, but it’s important to be aware of associated fees and interest rates. | Photo: Getty Images
If you need cash, you may want to consider other options before making a credit card advance. Some alternatives include:
Borrow from a friend or family member Apply for a personal loan from a bank or credit union Use an ATM from your own bank
Tips for Using Cash Advances Responsibly
If you decide to take an advance with your credit card, it’s important to use it responsibly. Here are some tips:
Only take an advance if you absolutely have to Pay the advance as soon as possible to avoid incurring interest Use the advance to pay for an emergency, like a car repair or an unexpected medical expense Don’t use the advance to pay off consumer debt, like credit card debt or student loans
Kakeibo Method: A tool to improve your personal finances
Get to know a Japanese method that will help you in your financial health | Photo: Getty Images/iStockphoto
The Kakeibo method is a Japanese personal bookkeeping technique that has become increasingly popular around the world. It is based on the concept of keeping a detailed record of income and expenses, with the aim of improving financial awareness and promoting savings.
The Kakeibo method is implemented in four basic steps:
Record income and expenses
The first step is to record all income and expenses, however small. This can be done in a notebook, a personal finance app, or even a simple Excel file.
Expenses can be classified into categories, such as housing, transportation, food, entertainment, etc. This helps identify spending patterns and areas where savings can be made.
Once the spending areas have been identified, a budget can be assigned to each category. This helps control spending and avoid excesses.
At the end of each month, progress should be reviewed to identify areas for improvement.
*This article was created with the help of artificial intelligence that uses machine learning to produce human-like text, and curated by a specialized journalist from El País.
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