How to Borrow Money right now

Borrowing money “right now” is relative to a persons’ unique situation. “Right now” could really mean this very instant to some folks and then “right now” to others could represent a few days. I like to believe that most people don’t get themselves into a situation where they needed the money like three days ago. Going on that assumption, here are a few options.

First you need to consider your present credit situation. Are you overextended at your usual establishments where you have credit? Is it possible to somehow delay whatever emergency is causing you to need this loan? Finally, if there is no way around it, can you afford a couple days to scrape up the money?

One way to consider that wasn’t around when I was much younger and had frequent financial shortfalls and that is the overdraft most banks offer as an incentive for new customers. I know it goes against the grain of most people to have a check pay into overdraft and it is not what people would usually consider a loan, but if you just need the money short term (like a couple of weeks) the 25 to 40 dollar OD fee beats quite a few of the alternatives. Most banks offer between 4 and 6 hundred dollars OD protection.

The next alternative is the pay day loan or cash advance. Most of these places will loan between 100 and 1500 dollars but chances are if this article is instructional to you, then this is your first time to try a pay day loan. If it is, most of these establishments will not loan you the max amount the first time and also your max loan depends on what you bring home each pay day. These loans, however, are quite expensive. Most places charge between 20 and 25 dollars per one hundred borrowed every two weeks and some even more. At the lowest interest 400 dollars would cost you 80 dollars interest. This figures to almost 500% interest annually and if you were unable to pay this loan off for a year’s time you would pay 2080 dollars interest! I consider this a really desperate situation!

I put this option last because most people would rather die than ask a friend or relative for money. This is a viable option only if you know that you know that you KNOW that you can fulfill your obligation to pay the money back when you say you will. Many a friendship or family tie has been strained or lost over money. To me, this is the very last resort!

The best way to never need any of these options is to plan ahead. Have a savings account for true emergencies even if it means sacrificing some luxuries or entertainment and do everything you can to live within your means.