Every now and then,
people find themselves short of something that they need most. Even if you have
your work, it does not mean that you are capable of doing everything you want,
and get all the things you need. When we are talking about important things in
life, basically, we are referring to our fundamental needs in order to survive
in this 21st century. You also know that in order to avail these things, you
have to work, so that you will be paid for your rendered services.
The availability of
the payday loans, business loans, and those personal loans are proofs of the
shortages that most people are experiencing, especially in the aspect of
financial.
Every time that you
will find yourself short of cash, the first thing that will run inside your
mind, is to look where you could borrow money. Actually, several methods are
available, in which you can get the money that you need. Below are the
different ways to borrow money that would surely help you in getting the amount
that is required.
• Families and
friends-this is the first option that most people are using every time they
would be running out of cash. To borrow money from people you truly know is a
big advantage, since there will be no interest that will be charged on the
money that you will borrow. This is possible, since these people will be
willing to lend you money out of friendship or out of the same blood that flows
in your bodies.
• Credit cards-this is
commonly used for those short-term types of credit. Having this special card is
convenient and easy to use, especially if you will be shopping and you forgot
to bring cash with you. All you need to do is to charge your bills in the
credit card and pay it at the end of month. You also have the option of not
paying your full balance, since you can choose of paying the standard APR
interest to the respective company of your credit card.
• There is also the balance
transfer that happened when you shift the debt from your credit card into the
other credit card. There is also the popular cash advance that most people are
very familiar with. This is when you get money at the ATM. You can see this
kind of method mostly in casinos. However, you should avoid using it as much as
possible. It is not only that you are charged of the cash advance fee of 3%,
but also the interest that you will have to pay that would range at around of
21%.
• Margin loan-those
people who have their stocks or the mutual funds, has the capability of
borrowing money from your respective brokerage. This brokerage will be using
these stocks to mutual funds of yours as a form of collateral. The interest
that one could get using this margin loan is the fact that its interest is much
lower than the interest of credit cards. However, there is always the reminder
that tells that you should not borrow that much on this type of loan. Since,
your mutual funds and stocks are used here as the collateral, there is the
tendency that the value of these might depreciate. If that happens, the broker
might force you of selling some of your assets in order to decrease the amount
of money you owe him.
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