09 Nov Borrowing Money with the Least Risk
While borrowing money should be a last resort, sometimes it’s necessary when you’re in a pinch between paychecks. Choosing where to borrow your money from can be the difference between a temporary shortage on cash to long-term financial struggle.
Financial experts agree that some options are less risky than others. One of the least risky is a credit card purchase. Putting your unexpected expenses on a credit card can even work to your advantage if you have a rewards card and can pay your balance when the bill comes. The second least risky option is a pawn loan.
While this may be a surprise to some, there is very little risk. You bring in your collateral and get a loan. Mary Hunt, author of “7 Money Rules for Life,” says, “It’s clean. There are no credit checks. And you have the option to not pay it back legally.” Some riskier loans include cash advances, bank advances, and payday loans.