What Are My Options If I Need To Borrow Money?

Seldom does anyone get the opportunity to skate through life without having to borrow money.

Of course, many people borrow money to buy a house or a new car. But the kind of borrowing we’re referring to is the use of credit cards or personal loans to cover monthly cash shortages and emergencies.

If you need to borrow money to pay your bills and basic expenses, your options may include:

• Taking out a personal loan
• Applying for a home equity loan or HELOC
• Getting money from 0% balance transfer credit card “checks”
• Using credit cards and taking cash advances
• Borrowing from retirement accounts
• Peer-to-peer borrowing
• Borrowing money from friends or family
• Pawning items at a local pawnshop
• Taking out a “payday” loan

But keep in mind that most of these money borrowing options come with high-interest rates or other terms and conditions that could create more financial stress in your future.

Keep reading to learn more about carrying consumer debt and changes to FICO credit scoring models that may impact your ability to borrow money and increase the amount of interest…