Affording Life: Ways to Make Ends Meet

There are times in nearly anyone’s life where funds are tight and trying to make ends meet seems almost impossible. For the long-term, instating and sticking to a budget will help to prevent this type of scenario from playing out in the future. For the immediate situation at hand, there are several options such as payday loans or traditional bank loans available that will allow you to avoid making a late or missed payment.

Traditional bank loan 

If you own a home and have a mortgage in good standing with your bank, you could apply for a traditional bank loan through the same establishment. A personal loan is generally a bit harder to get an approval on versus a car loan or student loan, but if you have made your mortgage payments on time and have a good credit score your chances are favorable for acquiring a loan.

Payday loans and installment loans

If your credit is poor and you don’t own a home that you can use as collateral for a loan there are still other types of short-term loans available. For many years the only place that someone with bad or no credit could turn to was a Payday loan. While the Payday loan did offer the borrower a temporary fix to their problem, the much higher interest rate and fees associated with it made it extremely difficult for someone with limited funds to pay off. In addition to the higher interest, a rate of 300 to 900 percent, the repayment is several weeks versus a traditional bank loan of several years. Luckily, there are other installment loans offered online through various lenders. While they are typically somewhat higher than a traditional bank loan, they have many repayment options available for a period of up to a couple of years. This lets you pay back the amount borrowed in small, affordable monthly payments instead of all at once like the Payday loan requires.

Refinance a car

If you don’t want to take on another loan, and you have a car that you purchased new with only a few payments left before you own it, you can opt to refinance it with another lender. This will allow you to reduce the amount of your current monthly payment. The amount you save each month you can use to cover other expenses.

Host a garage sale/ sell items online

There are plenty of ways to make a few extra dollars to cover unforeseen expenses. One way to do this is to host a yard sale or sell your unwanted items online at places like Esty. If you need the cash quickly, you can avoid taking pictures and creating an account and have a garage sale. You’ll still need to post signs and arrange your items neatly on tables and your front lawn, but you can do it as fast as the same week. By doing either you’re adding a few needed dollars to your budget and at the same time removing the clutter from your home.

Borrow from family

If every other option is not available to you, you could ask to borrow the money from a family member for the short term. The advantage is that you probably won’t need to add interest and fees to the repayment amount. Just make certain that the terms decide on are clear to you and the family member before accepting the money. Once you have it in hand, you need to honor the agreement and make faithful payments as promised.

In the end, the word “budgeting” plays a larger role than you might imagine. Without a budget in place, you have no true concept of where your money goes. It’s important to establish one and stick to it. Budgeting ensures that you make your payments on time and gives you a clear accounting of what you spend your money on. This allows you to make changes that will benefit you and dissolve bad spending habits. It also gives you a chance to save money for unexpected expenses that come along.