3 ways to creatively borrow when in need
Not every opportunity to borrow has to come via the traditional use of a bank credit card, line of credit, or loan. And not everyone has the ability to take advantage of those products. If you happen to be one of those people, never fear, all is not lost.
There are other similar ways to borrow that can still provide you with flexible repayment terms.
STORE BORROWING
Retail stores want you to spend money, so they’re going to provide as many incentives as possible that extend beyond just sales on their product. Retail credit cards can be a slippery slope if you fail to meet the payment conditions but are a great way to finance your larger purchases while maintaining strong flexibility.
To be clear here, these shouldn’t be confused with cards like a Walmart or Amazon credit card that aren’t created to provide flexible repayment terms. While they do certainly provide their own incentives in terms of earning cash back or their own form of points, it should not be confused with retail stores that offer their own cards with timelines of anywhere from three months to two years to pay off your purchase.
SPECIAL RATE BALANCE TRANSFERS
Keep an eye out for special offers from credit cards that allow you to transfer balances at a discounted rate. They can provide a significant savings if you know you are going to carry the debt for a while, with some places offering rates as low as zero percent for a limited time and still keeping things relatively reasonable after that.
The key here is ensuring you can get that card approved for the amount you need, so you’re going to need at least a decent credit history handy.
FAMILY AND FRIENDS
Obviously the most unconventional of the options but you’ve got no financial institution that can help you in a time of need, don’t be ashamed to seek out support from your inner circle. Do right by them, though, and show that you have in fact made the effort to seek help elsewhere before coming to them and set stern payment terms that you would have to follow-up on.
Go in expecting a no! It’s absolutely unfair to seek out your inner circle and be disappointed if they don’t feel comfortable enough to get involved with your financial situation. There are certainly examples out there of friends helping friends going wrong and you absolutely shouldn’t take it personally or be embarrassed by it. Hold yourself accountable, you’re the one who got yourself into a hole bad enough to seek out their help, but it certainly isn’t on them to risk their finances because of it.
Explain why the money is going towards an absolute need and not a want, explain exactly how you’re going to pay it back and how much time you need, then just hope for the best.
