Category: Finance

A credit card cash advance is a type of loan that allows you to use your credit card to withdraw cash from an ATM or bank. This option can be convenient when you need cash quickly, but it comes with some significant drawbacks.

The main advantage of a credit card cash advance is that it is easily accessible. You can withdraw cash from an ATM or bank using your credit card, and the funds will be available to you immediately. This is helpful in situations where you need cash right away and don’t have the time to wait for a traditional loan to be approved.

However, credit card cash advances also come with some major downsides. The first is the high cost. Cash advances typically come with very high interest rates, which can add up quickly if you don’t pay off the loan right away. Additionally, cash advance fees are often higher than those for regular credit card purchases, which can make them even more expensive 소액결제현금화.

Another disadvantage is that credit card cash advances do not come with a grace period, which means that interest begins accruing immediately. With regular credit card purchases, you have a certain amount of time to pay off the balance before interest begins accruing. With a cash advance, however, the interest starts accruing from the moment you take the cash out.

Finally, it’s important to remember that credit card cash advances are considered a “cash-like” transaction by most credit card issuers. This means that they do not count towards your credit utilization, which is one of the most important factors in determining your credit score. If you use your credit card to withdraw cash too often, it can negatively impact your credit score and make it harder to get approved for other types of loans.

All in all, while credit card cash advances can be a convenient option when you need cash quickly, it’s important to be aware of the high costs and potential negative impact on your credit score before using this type of loan. As an alternative, it’s better to seek out personal loans or line of credit which have lower interest rates and more flexible repayment terms. It’s also worth looking into a low-interest credit card that can help you save money on interest charges and make it easier to pay off your balance over time.

In conclusion, a credit card cash advance can be a convenient option when you need cash quickly, but it comes with some significant drawbacks. High costs, lack of a grace period, and impact on your credit score are just a few of the reasons why you should think carefully before taking out a credit card cash advance. As an alternative, consider other options such as personal loans or a low-interest credit card, which can help you save money and maintain a good credit score.

One of the reasons many people fail, even very woefully, in the game of investing is that they play it without understanding the rules that regulate it. It is an obvious truth that you cannot win a game if you violate its rules. However, you must know the rules before you will be able to avoid violating them. Another reason people fail in investing is that they play the game without understanding what it is all about. This is why it is important to unmask the meaning of the term, ‘investment’. What is an investment? An investment is an income-generating valuable.

From the definition above, there are two key features of an investment. Every possession, belonging or property (of yours) must satisfy both conditions before it can qualify to become (or be called) an investment crypto investor . Otherwise, it will be something other than an investment. The first feature of an investment is that it is a valuable – something that is very useful or important. Hence, any possession, belonging or property (of yours) that has no value is not, and cannot be, an investment.

The second feature of an investment is that, in addition to being a valuable, it must be income-generating. This means that it must be able to make money for the owner, or at least, help the owner in the money-making process. Every investment has wealth-creating capacity, obligation, responsibility and function. This is an inalienable feature of an investment. Any possession, belonging or property that cannot generate income for the owner, or at least help the owner in generating income, is not, and cannot be, an investment, irrespective of how valuable or precious it may be.

There is another feature of an investment that is very closely related to the second feature described above which you should be very mindful of. This will also help you realise if a valuable is an investment or not. An investment that does not generate money in the strict sense, or help in generating income, saves money. Such an investment saves the owner from some expenses he would have been making in its absence, though it may lack the capacity to attract some money to the pocket of the investor. By so doing, the investment generates money for the owner, though not in the strict sense. In other words, the investment still performs a wealth-creating function for the owner/investor.

As a rule, every valuable, in addition to being something that is very useful and important, must have the capacity to generate income for the owner, or save money for him, before it can qualify to be called an investment. It is very important to emphasize the second feature of an investment (i.e. an investment as being income-generating). The reason for this claim is that most people consider only the first feature in their judgments on what constitutes an investment. They understand an investment simply as a valuable, even if the valuable is income-devouring. Such a misconception usually has serious long-term financial consequences. Such people often make costly financial mistakes that cost them fortunes in life.

Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage” 1 million dollars to naira. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.

This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.