Not every household has the ability to dip into an emergency savings account when finances are tight. When you need extra cash for some type of emergency, you may have to evaluate your alternatives carefully. Of course, you don’t want to cause your long-term finances any problem when you need to borrow money. When you’re looking for ways to borrow money that won’t hurt you years from now, check out these five tips.
- Borrow from a trusted family member
If you have a family member or even a close friend that is in a better financial position than you, it won’t hurt to ask them to borrow some cash when you’re in a bind. Just remember to get everything down on paper to avoid confusion later. Put together a repayment plan that you both agree upon. In most cases, loved ones won’t charge you interest on a personal loan, so you won’t need to worry about it messing with your finances later on.
- Borrow from short-term lenders
Short-term lenders are an excellent source for borrowing in a pinch. Consider using same day loans to pay the bills without getting deeper into debt. Most will not check your credit score, and if they do, a bad one won’t necessarily hurt your chances of getting a loan. Only take out the smallest amount you can get by on even if you happen to qualify for more. You don’t want to let repeated loans force you into an unwanted cycle of debt.
- Take out an advance from your place of employment
If you have been with your employer for enough time, they may just allow you to take out an advance on your paycheck if you need money fast. If the amount you need is larger than your next paycheck, ask about setting up some type of repayment plan until you can pay off the whole amount. This won’t hurt you in the long run, and your company will likely not charge you any type of interest on your loan.
- Look for peer-to-peer lending groups
While this type of option could be a little more difficult to find, there are peer-to-peer lending groups online that allow you to borrow small amounts of money from others who are willing to lend it to you. Check local social media platforms, especially Facebook, to find groups with trusted members that will help you out with smaller loans. Borrowing from a peer-to-peer group today, you won’t mess up your finances in the long run.
- Take out a cash advance from your credit card
If you have a credit card, you should be able to take out a small cash advance to get you through your situation. Look for cards with lower APR rates if you go this route. The faster you can pay it back, the better it will be for your bottom line years from now.
For the sake of your finances, it’s crucial only to borrow what you need no matter how you choose to get a loan. Even if you can borrow a larger amount of money from a lender, resist the temptation. This way, you’ll be able to repay the loan quickly without damaging your future financial situation.