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where to borrow money


If you’re in need of money on short notice, a temporary solution is a short term loan. Proceed with caution.

They are designed to offer a ready source of cash for wage earners with more month than paycheck. Although allegations are made that some lenders prey on the poor, actually those who borrow from genuine short term loan providers tend to fall into the low to moderate income categories.

In October, 2010 the Federal Reserve Bank of Philadelphia did a study entitled, Payday Lending: New Research and the Big Question. As the title suggests, there are advantages and disadvantages that came out of the research. On a behavioral note, there was discussion that loan borrowers valued immediate gratification over delaying for a few weeks. This information is useful in understanding the consumers of these types of loans.

Good Money Management Strategy

Before reaching for a loan, track your income and expenses for a few weeks.

Stick a small pad in your pocket or use a note taking app on your phone. Start by listing your income. Next, jot down every penny you spend. Don’t forget that $1.25 pack of gum or $2.00 coffee at the 7 eleven. If it turns out that you are regularly spending more than you earn, then you need to find a way to trim the spending.

Your expense record will show what expenses to eliminate. With a bit of thought, cutting small expenses can boost your available cash.

Although the best strategy for the “more month at the end of your money” is a budget and emergency fund, if you do have a need for quick cash on an occasional basis, here are a few tips to improve your use of this borrowing option.

Loan Strategy

1. Check the interest rates of various lenders. A lower interest rate is preferable to a higher one.
2. Pay back the loan as fast as possible. The quicker you repay, the less interest you pay.
3. Track your larger expenses and know when they are due. For example, in winter, realize that your heating bill will go up. When school starts, remember that the kids will need to buy school supplies. Put money away during the year to cover these periodic expenses.
4. Make borrowing an infrequent solution. Know when your expenses will be larger and create a savings plan to cover those higher cost months.

In sum, there may be some months when you must borrow a bit to get by. Over time, take steps to put a bit of savings away in a no fee bank account each month to dip into when cash is low.

What are your experiences with short term borrowing?

image credit; google images steven roddy dot com


  1. When opting for a short-term loan, I would suggest that you consider borrowing money from Peer-To-Peer Lending. With P2P lending, you can get lower rates when compared to borrowing from other institutions (if you have bad credit) Another advantage if that you can also get approved easier. How about this for a borrowing strategy… do you have an old paid off car? Refinances the car at 1.49% (penfed) and throw some gap insurance on it.. Boom.. You have a nice chunk of change at 1.49% and supported by a $300 gap insurance policy just incase the old car breaks down. Cheaper/safer than P2p lending.

    Dominique Brown

    November 20, 2012

  2. Fast cash loans are the short term loans that allow you to avail a small amount of money in double quick time. You just need to get in touch with a payday loan company and apply for a fast cash loan. However, you need toremember that the interest rate of such loans is quite high. It can go up to 30 percent and therefore you need to be clear regarding the loan terms.


    February 25, 2013

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