In financial matters, one can rarely escape the expected or unexpected to happen. The need for money always arises but the means to earn it is not readily or immediately available. Whether it is for a sudden medical bill or for new car, everyone at a point in their lives have a need to borrow money.
Like shopping for a new dress, the best way to look for good borrowing rates and deals is to shop around as much as you can. The mistake people do is to settle for any means of quick cash and spend a life-time trying to repay.
It is important to think logically when the need to borrow money arises as desperation and rush might end up creating more serious financial complications than the one you borrowed to solve. What are the common ways to borrow?

1. Depending on what you need to loan money for, traditional bank lending might be your best bet. Home, car, boat and home equity loans can be easily sourced from banking institutions. For an interest and a fixed repayment rate, some banks even offer signature loans which do not require any collateral for various petty needs. This however is dependent on having a good credit standing.

2. Borrowing from family members and friends is still one of the most common and efficient methods of borrowing. The main advantage to this method is that there may not be any interest charged but the strain in relationships resulting from failed datelines might be too much for some borrowers and lenders to bear.

3. Peer-to-peer borrowing or social borrowing is gaining popularity even on the internet. People who are not necessarily family members or friends come together to offer and receive loans for certain interests. There are a lot of risks attached to this kind of borrowing. Care should be taken to appreciate the terms and conditions before indulging.

4. Payday loans are short-term loans available for emergencies. They could be cash or cheque advance, post-dated cheque, or deferred deposit check loans. Typically, these loans are for only for short periods of time and previous pay cheques might be needed for approval. It also attracts high interest rates.
5. Credit Card Loans can be one of these easiest and quickest methods to borrow money. Cash advances however have much higher interest rates than purchasing goods and services.

6. Margin Lending uses a person’s portfolio of mutual funds and stocks as collateral for loans. The interest is normally much lower than credit card lending but there is a risk of great loss if the value of the portfolio goes down.

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