What is the best way to borrow money during this current credit squeeze?

By Neil Baulch

Times are tough all over and if you are one of the many people that are telling yourself, "I need a loan to get through this," you are not alone. When money is tight and you are stuck between a rock and a hard place, you do have several options that will hopefully be able to get you some cash in a hurry.

You can always ask your family or friends to give you a short term loan when you need money. However, there are a couple of problems associated with asking family and friends for money. One problem is that it can be awkward asking those who are closest to you for money. Another problem is the poor economy may leave them with barely enough to keep them going let alone loan anyone any money.

Many people also feel that it is bad business mixing personal affairs and relationships with monetary ones. There may not be as much of a rush to pay back the loan when the lender is close to you. For this reason, you should really keep the money between you and a financial institution. So when you say to yourself, "I need a loan", you may want to go another route.

If the amount of money that is needed is truly short term and no larger than a single paycheck, a payday advance loan is a great way to get that money in hand right away. It is a pretty high interest rate for a short period of time, but you are paying for convenience and may not have a choice at this point.

For the loan to be processed, it is usually just a matter of a valid id, checking account and pay stub. They process your information and you have money in hand in a few minutes. Terms are usually fairly short and no more than a couple of weeks. The borrowing amount is usually your paycheck up to about $500.

While family and friend are there to lend support when needed, money may not be the best area to test the waters. If you have the discipline to treat it as a professional arrangement, which very few people do, you can explore that, but otherwise you should go to the organizations that are set up for exactly this reason. - 31382

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