Borrowing Money Short-Term Responsibly

Many people fall short on cash for a short period of time through no fault of their own. If you just have enough to cover your monthly obligations all it takes is an unexpected expense to throw your whole delicate system into a frenzy. When these moments arrive, borrowing to make the repair or to fill in your budget is something you must carefully view from all angles. If you don’t have enough money in the budget to repay a loan you simply can’t borrow.

Applying for a Short-term loan

If you have an urgent situation like a repair to a car or a home, such as an alternator or a plumbing issue, there is no putting off the problem. And, if you don’t have the funds available you’ll need to borrow from another source. If you’re already tight with very little left over for you each month you’ll need to repay in small monthly amounts. The good news is that there are many companies online like that specialize in making short-term loans affordable. This way you can spread the payments out over 6 months to a year, make the repair and stay the course with your budget. If, on the other hand, you don’t have any money left over each month, borrowing even with small repayments, is not wise.

Borrow from you 

There are other ways to acquire the money for an unexpected repair. For instance, if you have a retirement fund such as a 401K you can borrow up to half the available monies. Unlike a pension fund, there is no penalty for borrowing prior to retirement and the best part is that you’ll actually be paying yourself back with interest. The payments would come directly out of your paycheck weekly or biweekly, depending on how often to receive a paycheck. There is no credit check since it’s your money and the payment can extend for a year up to two years making it very affordable.

Borrowing from family

If you don’t have a retirement fund to draw funds from and your budget doesn’t have enough wiggle room to support a monthly payment, you could speak to you parents or siblings to see if they are able to help you out. If this is the first time you’ve asked family for money and they have it, chances are pretty good that they will lend it. However, if this is something that you do often, then they may not want to loan out the funds. It really depends on whether or not you’ve paid off your prior debts to the family. Many people who borrow from family don’t really consider the repayment as urgent. If you borrow from the family you need to repay the loan in a timely fashion the same as you would any other loan. The nice difference here is that there’s no accruing interest.

Other ways to find money

Sometimes even family members are strapped for cash and borrowing from them is just not doable. If you haven’t cleaned out your basement, attic, and garage for quite some time, chances are good that you’ve acquired a lot of things that you no longer want or need. This is great because now you have valuables that other people want and need in good condition. It’s time to sort through your things and host a yard sale. If you schedule it for a weekend and post signs you should get a lot of traffic. A lot more people than you might imagine driving around on the weekends looking for bargains. You could make a few hundred dollars or even more, depending on how much you have to sell. The good news is that it’s all profit and as an added bonus you get your spring cleaning out of the way.

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