Are you living paycheck to paycheck or just struggling to make it each month?

Don’t make risky moves when you’re finances are vulnerable. Below are some common mistakes people make when they’re scrunched for cash:

Tapping your retirement account: Although that big chunk of money may be tempting, resist the urge to take money out. Many withdrawals from retirement accounts are heavily taxed, which means you’ll lose serious long-term money.

Ending retirement account contributions to “save” money: If your employer matches your contributions, failing to put money away in a retirement account means you’re essentially giving yourself a pay cut. Not pretty, huh?

Taking out a payday loan: The promise of instant cash may seem appealing, but think twice before walking into a payday lender or a cash advance store. These short-term loans typically come with sky-high interest rates and can lead to devastating cycles of debt .

Getting a credit card cash advance: Like payday loans, these can come with obscene interest rates and many cash advance offers come with your regular bill. Often, interest rate and fee information appear in tiny print, so you’re unlikely to realize how much a few extra dollars is costing you.

So What Should You Do if You Need Cash to Pay Bills?

Consider borrowing from a friend. If you’re in need of emergency cash, a friend or family member may be able to lend you cash to get by.

But be careful—if you’re experiencing a more serious financial situation, like you owe a lot of debt or you’ve recently lost your job, it can be dangerous to your relationships to borrow if you can’t pay them back or will have to keep asking them for help.

Consider filing bankruptcy. If you’re truly unable to make ends meet, bankruptcy may offer you the breathing room you need.

If you file for bankruptcy, you may be able to protect your retirement account while getting the rest of your finances back on track. A bankruptcy lawyer can help you better consider this option.

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