Every once in a while you run into a month where your finances are all out of whack. That is the situation I have been in the past two months unfortunately. I fronted some money for some friends (most of which is paid back, and I have no doubts the rest will be in time) and I spent some additional cash that I didn’t exactly have in my checking account.
This wasn’t a disaster as I have excess cash in lots of different accounts. However, I swiped a bunch of cash from my emergency fund to put it in my Roth at the beginning of the year and I have been a bit cash light. A nice influx of income was what I was looking for to help take care of my extra expenses, so I started searching for fast cash, thinking that it could be a proper means of making all of my ends meet for the month.
The thing with online loans (I’d look online for them as a means to do research before selecting where to get one if you are in dire need) is that they don’t always have the best interest rates. In fact, they rarely do. However, for those that have maxed out credit cards, they may be the only option to get your bills paid. I call every few months to try and increase my credit limit as to avoid these situations (and be able to take advantage of low interest rates when I need to carry a balance for just one or two months), but that didn’t mean I didn’t consider the notion for a moment when I was balancing my accounts the past few months.
There are a lot of lessons to learn here. Don’t loan money out if it may impact your finances, have enough available credit so that you aren’t forced to look for payday loans in a tight spot, and do research before you make a decision on what method is best to level out your finances after a chaotic month. If you come across this situation in your own life, I hope you take a step back and don’t act before assessing all the different options in front of you.