Best and worst money moves during the coronavirus pandemic

TVNET3 April 25, 2020 7:55 pm

Since the COVID-19 pandemic has left so many cash strapped, 7 On Your Side asked CreditCards.com industry analyst Ted Rossman to break down the best and worst options when it comes to making ends meet.

The worst money crisis move? Getting a credit card cash advance. It’s easy, but it’s too easy.

“The problem is they come with really high fees, interest accrues immediately, and there’s no grace period,” Rossman said. “Average interest is about 25%, and they hit you with another fee 3-5% of the amount being transferred.”

Worst money crisis move #2: Borrowing from your 401(k) plan.

It’s tempting since it is YOUR money. But you will lose time in the market, and withdrawing early can come at a price.