Cash Advance

It's the end of the month and you are not going to have enough money to pay all your bills after an unexpected car repair incident. So, the thought occurs to you that "I could just get a cash advance on my credit card." A cash advance lets you get a loan from your credit card, and just like any loan you need to pay it back with interest. But you want to look before you leap.

First, you can't get cash advances up to the full limit of your credit card account, as it's usually capped at a few hundred dollars. And unlike a regular credit card purchase where you have a "grace period" before you start paying interest on the purchase, cash advances start accumulating interest on Day 1. And that interest rate will usually be higher than a regular credit card purchase.

In addition, there could be cash advance fees and possibly ATM or bank fees. The best way to avoid the situation is to start an emergency savings account, so you won't feel desperate to get loans such as cash advances when you're in a pinch. Those loan sharks are always hungry...and you're salmon, in case you were wondering.