If You Get in a Bind, There are Ways to Avoid the Payday Loan Trap

Most card issuers charge a fee to advance you money, and the interest rates are usually higher than you’ll pay for credit card purchases. In recent months, some issuers have raised cash-advance fees and interest rates, says Bill Hardekopf, CEO of LowCards.com. For example, in February, Citi increased its interest rate for cash advances to 25.24% from 21.99%.