The NY Times decries cash loans for bad credit that involve cash advances from a Visa or Mastercard account:
Everyone hits an unexpected bill or expense now and then — a car breaks down, an air-conditioner fails during a heat wave, a relative needs medical care.
While it may be tempting, one source of emergency cash that should be used sparingly, financial advisers say, is a credit-card cash advance, which is an expensive way to borrow money.
“Cash advances are almost always a bad idea,” said Michael Sullivan, a personal financial consultant in Phoenix with Take Charge America, a nonprofit credit counseling agency.
The average interest rate for a cash advance on a credit card is nearly 24 percent, compared with an average of about 16 percent for purchases, according to a new analysis by the card comparison site.
Unlike with purchases, cash advances have no grace period: Interest starts accruing right away, as soon as you borrow the money…