Long time ago, a business owner leverages credit cards for his business cash flow. He has 2 credit cards. Month 1 draw 20k from card A. Month 2 draw 20k from card B to pay off card A. Sounds like he received a nett 20K, really?
But
Once you make a cash advance out of credit card, you will be charged 5% of the amount you withdraw or minimum of RM15.
.
Withdraw 20K.
Cash advance fee 5% = 1K
Debt = 21K
Every month withdraw for 1 year = 12K
To have 20K monthly, your debt now 32K.
In another way, you use 12K to get 20K for 12 months.
You get flexibility of credit, and then end up in bad debt.
Get a proper loan.
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