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164 Past Due – What Are The Best Ways To Borrow $20,000 Fast?

by Derek Sisterhen on July 15, 2011

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Past Due: Radio 164 – What Are The Best Ways To Borrow $20,000 Fast?

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During a recent workshop for teens and their parents, we discussed the dangers of debt, how credit cards work, paying for college, and cars. During the Q&A, a father of a 17-year old girl asked, “What if you need some cash very quickly, about $18,000-$20,000? What are the best ways to borrow if you must?”

That’s an interesting question that comes with a very loaded answer. On today’s show we discussed the typically approach most people take when they need money for “surprises” like college tuition, house repairs, and car replacement. We also addressed how we start to justify poor borrowing decisions by only looking at perceived “benefits” of the different types of loan out there.

We covered:

1) Credit cards

2) Borrowing from family

3) 401(k) and other retirement plan loans

4) Home equity loans and lines of credit

Before pulling the trigger, we must understand the major detractors for using these lending methods to supplement a big time cash shortfall. We also talked about how borrowing like this perpetuates a debt cycle and will like require a lifestyle adjustment to break.

If you have a specific question, I’d be happy to answer it and further cultivate the wisdom of the Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!

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  • Smfinch

    Wouldn’t borrow.  Sallae Mae will set up a no interers,t pay as you go loan for college expenses.

  • http://twitter.com/JWFinCoaching Jonathan White

    Welcome back Derek, missed the show the last few weeks. Good
    to see you are back sharing some great financial advice.

  • http://pastdueradio.com/ Derek Sisterhen

    Hey Jonathan,

    I was on a little sabbatical to get refreshed; great to be back in the saddle though!  Thanks for being a part of the PDR world!

  • http://pastdueradio.com/ Derek Sisterhen

    Good thinking, Smfinch.  The most important thing is that there are free dollars in the cash flow to cover pay-as-you-go; most people tend to avoid the difficult lifestyle decisions that will allow that money to be available each month (selling the expensive car, cutting back on vacations and restaurants, etc.)

    I have met a number of families who paid as they went with great success, though; there are plenty of ways through school that don’t involve loans or having huge savings.

    Great comment!

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