Money doesn’t always flow in and out of our budgets in predictable amounts. And even though we all try to create a savings account, the reality is that at some point in time we are going to need to spend more money than we make. Hopefully, if you are living within your means, this will be a short term phenomenon that you can recover from. This post addresses a few ways to use short term loans to your advantage.
Step 1. Develop a Plan
If you are running out of money you need to realize that getting a short term loan can easily turn into a chronic long term problem. The real solution is to find a way to start getting ahead of your spending. Getting a short term loan will get you money in the near term but will make your life more difficult when it comes time to repay the loan. Review your income and expenses and do what it takes to raise one and/or lower the other.
Step 2. Find Your Loan
Shop around for a loan that will work for you. Analyze your credit and your loan options. If you have good credit, income and assets it should be easy to get any sort of traditional loan. Pay close attention to interest rates and compare your options. If you have income but bad credit you might be able to get a loan against your income. If you have a car that is paid for, you could even consider getting a short term title loan. You can see an example of that at title loans Orlando. If none of these options work you can always hit up your friends or family for help. And in the worst case, you can stop paying the bills that aren’t secured. This would destroy your credit so you should see a credit counselor before being this drastic.
Step 3. Prevention
If you’ve taken the steps above then you’ve surely realized that the most important thing you can do now is to prevent this from happening again. It’s time to create a long term financial plan that will balance your income and spending, and that will allow you to build some savings as well as start to prepare for the long term.