Don't take out money with your credit card

[Himon2413]

Avoid paying triple the interest rate just for using your card to withdraw cash.

If you don't have cash on hand, don't make the mistake of withdrawing money from an ATM with your credit card. This decision could end up costing you dearly.
Paúl Lira, Director of Administration and Finance at UPC , says that the interest rate for this transaction can be three times more expensive than a consumer loan.
To give you an idea, the annual 1000 number screening effective cost rates for withdrawing money from an ATM vary between 56% and 188% in the financial system, while card consumption fluctuates between 42% and 100%, according to information from the Superintendency of Banking, Insurance and AFP.
"It is more advisable to withdraw money from a debit card (savings). Using a credit card will only lead to paying high interest rates," he stressed.
The expert said that many people believe that they can pay off other debts under this system, but the only thing they are feeding is a cycle from which it will be very difficult to escape.
"We must take into account that the cards give us credit for 30 days, that is, if my consumption is S/. 100 and the bill arrives for S/. 105, including commissions, it is best to pay 100%. The worst thing is to pay in installments because the interest rates 'eat' you up ," he said.
EMERGENCY Meanwhile, Esan University professor Jorge Guillén said that only in a case of extreme emergency would it be justified to withdraw money with a credit card.
"If I need cash right now for a family emergency and there's no one to lend me the money, I'll have to take it out of the ATM, but I have to try to pay it back immediately ," he says.
He also advised against withdrawing large sums of money from ATMs, as there is a risk of being robbed.
"Most stores now accept plastic money and sometimes it is the best way to pay for purchases ," he recommends.