Borrowing Money Can Be Financially Savvy!

by - 7/14/2017 09:32:00 PM

When it comes to borrowing money, a lot of people put it hand in hand with being in debt. Essentially, this is true; as soon as you take money from a company or lender, you are indebted to them. But when you look at it from another angle, it can be one of the most financially rewarding things that you will ever do.

Credit Cards

Credit cards - you either love them or you hate them. Those who hate them link them to debt and overspending. It is true that you can definitely get carried away when you have a credit card; after all, it can seem like free money at the time, and not having physical cash in your hand can be a dangerous idea if you’re not setting a limit in your head on how much you are spending. However, this doesn’t mean that you can’t benefit from it. Choosing the right card is a good start, and there are comparison sites that can point you towards one that is good for you and your situation as it currently stands. A lot of them offer rewards just for signing up, as well as certain promotions that you can take advantage of. Not just this, but if you manage to score one with 0% APR for a fixed term, you can transfer any debts onto your card and knock off the APR that is attached to them - therefore lowering the price significantly that you will have to pay back. It’s win-win!

If you know that you need money, but aren’t quite sure about where to get it from, you could consider getting a personal loan. These are especially good if you need an amount fast; it gets transferred straight into your bank account almost as soon as the application has gone through. Using this to combat existing debts can be a good solution rather than extending your overdraft or having to go over a limit on a credit card. Going over the maximum that you can spend isn’t a good idea, but sometimes it is unavoidable. This doesn’t mean that you haven’t got alternative routes to use, though - and a personal loan is just one of them.
Friends and Family
Borrowing money from friends and family can be one of the most financially savvy things that you do. It should only be done when you actually need the money and aren’t really using it towards your own savings gains. Doing it this way means that you won’t be paying interest, or at the least a very low amount, in order to get yourself back on track. It saves you from applying for a credit card or loan and can be especially useful for those who already have poor credit and may be rejected from the prior options based on their score. Setting up a payment plan to get yourself back on track and clear of your debts to them will show that you have a willing to give back every penny that you have been lend.

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