This is part of the problem

**bjl584** · 02-15-2013, 10:29 AM

That offer may have been sent out before the late payments hit your credit report.

**Christine88** · 02-15-2013, 01:52 PM

Originally posted by bjl584 View Post

That offer may have been sent out before the late payments hit your credit report.

Perhaps so but what scares me is I haven't cut the card up. I'm afraid I'll use it and that's the last thing I need to do.

**Petunia 100** · 02-15-2013, 03:41 PM

I would take them up on their offer. Use a cash advance if necessary to get current. When you have good credit, you have options. When you have bad credit, you don't. Get current, that is the first step.

The second step is a written spending plan, otherwise known as a budget. If you don't have one, it is time to start.

What is going on in your life that you have gotten behind? Has there been some sort of big change? An unavoidable big expense? Is it overspending?

**Christine88** · 02-15-2013, 03:50 PM

Originally posted by Petunia 100 View Post

I would take them up on their offer. Use a cash advance if necessary to get current. When you have good credit, you have options. When you have bad credit, you don't. Get current, that is the first step.

The second step is a written spending plan, otherwise known as a budget. If you don't have one, it is time to start.

What is going on in your life that you have gotten behind? Has there been some sort of big change? An unavoidable big expense? Is it overspending?

Overspending plain and simple. If I use the new credit card to get current it won't stop there and soon I will max that one out .

**Petunia 100** · 02-15-2013, 03:56 PM

Originally posted by Christine88 View Post

Overspending plain and simple. If I use the new credit card to get current it won't stop there and soon I will max that one out .

I suggest you find a strategy which helps you stop using the cards. Some people fill a container (tupperware, ziploc bag) with water and their credit cards, then place in the freezer. If you really NEED to use the card, you can thaw it out. But you will be forced to THINK first. Or, you might take them to your bank and put them in a safe deposit box. Same idea, not immediately accessible, but you can get them if you really need them.

What sort of interest rates are you paying?

**Baby_nurse** · 03-08-2013, 05:04 PM

Originally posted by Petunia 100 View Post

I would take them up on their offer. Use a cash advance if necessary to get current. When you have good credit, you have options. When you have bad credit, you don't. Get current, that is the first step.

The second step is a written spending plan, otherwise known as a budget. If you don't have one, it is time to start.

What is going on in your life that you have gotten behind? Has there been some sort of big change? An unavoidable big expense? Is it overspending?

Why would you suggest someone take a cash advance, at most likely a higher APR, when they cant stay current with the debt the already have?

**97guns** · 03-09-2013, 04:53 AM

Originally posted by Christine88 View Post

Ok so I'm a few months behind on some of my credit cards getting calls everyday and so what do they do? Well One sends me a new credit card with a $5000 limit and a letter stating that if I bring my current account up to date they will increase the limit on the new card to $7500 LOL! This is insanity!

right now this is whats driving the economy, luring folks into credit merely for survival. this is a credit based economy, without it it crashes.

**Petunia 100** · 03-09-2013, 07:34 AM

Originally posted by Baby_nurse View Post

Why would you suggest someone take a cash advance, at most likely a higher APR, when they cant stay current with the debt the already have?

The answer to that is in my original statement. To get current.

**Baby_nurse** · 03-09-2013, 09:20 AM

Originally posted by Petunia 100 View Post

The answer to that is in my original statement. To get current.

Works for this month, but what about next month when the minimum payment is now higher? Taking out a cash advance is setting her up to repeat the cycle. Better to get the cards current without borrowing more to do it.

**Petunia 100** · 03-09-2013, 10:01 AM

Originally posted by Baby_nurse View Post

Works for this month, but what about next month when the minimum payment is now higher? Taking out a cash advance is setting her up to repeat the cycle.

That is why I suggested she needs a written budget.

I feel you didn't read what I wrote, even though you quoted it.

I was once in credit card debt hell and clawed my way out. The key for me was staying current on everything, so that I was able to take advantage of low interest opportunities which presented themselves. Being delinquent removes that possibility. Paying late fees on top of everything else makes the pile of debt that much larger and thus should be avoided.

Originally posted by Baby_nurse View Post

Better to get the cards current without borrowing more to do it.

I agree, if it is possible that is certainly better. Notice in her first post she states she is several months behind on everything. I made an assumption that if she were able to pay, she would do so.

Notice also I stated "use a cash advance if necessary to get current". That is quite different from stating "use a cash advance whether you need to or not".

**Baby_nurse** · 03-09-2013, 05:20 PM

I read quite well, thanks very much.

**neatdesign** · 03-10-2013, 08:17 AM

Almost without exception, cash advances are at a very high interest rate AND the interest compounds DAILY, not monthly. This is bad news for someone trying to get out of debt.

Also, if the OP already owes a balance on the Wells Fargo account (which it sounds like she does), then she's... what? Taking a cash advance in order to increase that balance and owe MORE money on the same account? That makes no sense. If she can't afford her current payments, she'll be less likely to if her balances (and thus her minimum payments) go UP.

If the OP is late on her credit card payments, then her APRs probably skyrocketed by the second missed payment, if not the first. For all we know, her cash advance APR is 29.99% -- that's the penalty APR for many credit cards out there. So 29.99% APR interest that compounds daily... OUCH.

**Petunia 100** · 03-10-2013, 08:45 AM

Originally posted by neatdesign View Post

Almost without exception, cash advances are at a very high interest rate AND the interest compounds DAILY, not monthly. This is bad news for someone trying to get out of debt.

Also, if the OP already owes a balance on the Wells Fargo account (which it sounds like she does), then she's... what? Taking a cash advance in order to increase that balance and owe MORE money on the same account? That makes no sense. If she can't afford her current payments, she'll be less likely to if her balances (and thus her minimum payments) go UP.

If the OP is late on her credit card payments, then her APRs probably skyrocketed by the second missed payment, if not the first. For all we know, her cash advance APR is 29.99% -- that's the penalty APR for many credit cards out there. So 29.99% APR interest that compounds daily... OUCH.

If you are carrying a balance, all credit card interest compounds DAILY, not monthly. This is not something unique to cash advances.

As you say, if someone is currently delinquent, they are being charged the penalty rate on their entire balance. This is more expensive than being charged a higher APR on a portion of their balance.

**neatdesign** · 03-10-2013, 10:45 AM

Originally posted by Petunia 100 View Post

If you are carrying a balance, all credit card interest compounds DAILY, not monthly. This is not something unique to cash advances.

However, cash advances have no grace period. The interest starts accruing the minute a cash advance posts to your account. Not so with purchases made to your credit card. On those you're only charged interest if you don't pay in full every month.

This is part of the problem