An Albanian proverb goes, “If you lend your money either lose the money or gain an enemy”. While the tendency to do that is far more frequent among friends and family, realistically speaking, it’s not the most practical thing to do.  This is not to say that your close set of people won’t be beside you during your time of utmost need. But even experts correctly point to the fact how these traditional forms of borrowing can cost you relationships dearly.

Now think of retirement savings. What if you change your job and need to repay instantaneously? Imagine the effect it might create on the account that won’t witness growth in these years. Another thing could be laying hands on your assets or simply choosing a bank loan. But then comes the interest factor and you have no way to escape. Whatever be your need, the following ways to borrow money might come of great use to you, especially when in troubled waters.

Home Equity Loan

For homeowners who have at least 20% equity in their homes, this traditional approach is a good option. The payment is akin to a lump sum instead of an ‘as-needed basis’ thing. So it has a fixed interest rate, with a monthly payment and also a repayment date. This works great for those who haven’t resorted to any personal loan, for the functioning is similar sans any revolving credit or interest rate that keeps varying. Ensure you carry detailed information about the home, income, mortgage and the like to banks and lenders. In no time, you’ll get your loan.

Home Equity Line of Credit

This is similar to the former, barring a few differences. Also termed as ‘second mortgages’, HELOCs (that’s the abbreviated form) are good options as the interest rates are far lesser than most personal loans or even credit cards. Taking into consideration that the option stays for homeowners having equity in homes, this is however not the best fit for all. The amount is limited in this case. So you can borrow whatever you require in the way how you need the same, as the line of credit stays open like any credit card.

Personal Loan From Bank

Go for it if you have a great credit score. These generally have higher interest rates, but the best part is that no limit is exercised upon what and how you use your money. The chances of obtaining low rates can’t be ruled out totally, but that depends considerably on the best of credit scores. Interest rates can fall in the range of 6%-30%. Anyone who doesn’t have a home or huge investment portfolio can think of opting for this. But before everything else, get a correct idea about your income, expenses; finish the application and then look for the loan that syncs with fits your needs.

Personal Loan From Credit Union

If you are a credit union member having a good credit score, these unions will charge you far lesser interest than banks. The sad reality is this stays applicable only for members. Now if you wish to get a membership, the requirements must be furnished like, your stay in which area and the like. Apply for this only at the specified website or a certified branch. Often you might find this cheaper than bank loans, but ensure you compare the offers with other banks and money lenders in order to stay safe

Credit Card

There’s no denying that credit cards are ‘notorious’ for being expensive modes to borrow money. Now if you are putting every expense of yours on these and cannot pay them right away, try looking for cards having introductory 0% APR, also called balance transfer cards. Here, you get a certain period (9 to 21 months, as allowed by your card) of interest-free credit. So if you manage to pay off the balance prior to expiry of the 0% interest rate, you can freely borrow. But everything’s not rosy after the introductory period gets over. Therefore, the interest rate applies to the remaining balance. And if you cannot pay off the balance timely, don’t go for it.

The current times have led economists to debate if the recession will strike hard. In all likeliness, the situation is going to be as bad as the one that literally shook the world in 2008, if now worse. It’s better to accept that and stay prepared likewise.