New Delhi, Nov. 2 -- Withdrawing cash on a credit card can seem like a convenient fix in an emergency, such as a costly surgery or an urgent cash need. But cash advances are among the most expensive forms of debt.

Unlike regular purchases, a cash withdrawal attracts a withdrawal fee, and interest starts from the day the money is withdrawn. There is no interest-free period, which makes the transaction costly even if you repay quickly.

For someone withdrawing Rs.10,000, the amount to be repaid can be significantly higher, especially if the dues are not cleared immediately. Here is how the charges add up.

When a credit card user uses this facility, they generally incur a 'cash advance fee' calculated as a percentage of the amount withdraw...