Renowned personal finance expert Suze Orman shared several mistakes people make when strapped for cash.

"You make these mistakes particularly when you're desperate for dollars," Orman told her audience on her official YouTube channel.

At the top of the list is taking out a payday loan — something she said you should "never, ever, ever" do.

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A payday loan is a short-term borrowing option. Payday loans target consumers in a cash crunch who need to make ends meet. Most people turn to payday loans for emergency expenses such as unexpected car repairs, medical fees, fines or to cover a credit card payment until a paycheck arrives.

However, high fees and annual percentage rates of 300% to 500% often make paying the loans back challenging. And you'll still have to repay a payday loan even if you end up bankrupt. 

"In most cases, payday loans are not dischargeable in bankruptcy because every 30 days they renew, and since they renew, if you go to claim bankruptcy, it will seem like a loan you just took out and they're not going to let you discharge it," Orman said.

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Alternatives to payday loans include credit union loans, unsecured personal loans and personal lines of credit.

Another no-no is withdrawing money from your 401(k) retirement account, which is protected from bankruptcy.

"It makes no sense to take a loan from a 401(k), so don't make that mistake either," Orman said.

She also counseled her viewers not to be so desperate for money that they rent a condo or a house to the first person who comes along. If that person isn't able to pay the rent, you're still responsible for the mortgage payment with no income coming in.

"The big mistake you make is you don't check their FICO scores; you don't check their references," she said. "They look nice, they look sweet, so you believe them. Do not make that mistake. Check them out, and if anything doesn't look good, find somebody else."

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