Borrowing Money | The Good, the Bad and the Not so Pretty

| September 11, 2012

Oh, you were sweating a good deal while hiking with your friend, and don’t live close by?  Just borrow a shirt from a friend.  You need another buck for that cup of coffee?  Your coworker is in line behind you.  Just grab a dollar from them.

You need $40,000 for college?  You need $150,000 for that new home?  You want $75,000 to start your own company?  Well, that’s a horse of a different color.  You’re going to have to formally borrow money from some sort of institution for those amounts.

Borrowing is a reality.  However, borrowing isn’t a black-and-white process.  There are shades of grey in between ‘good’ and ‘bad’ borrowing.  What are some things to consider?  Read on.


Image courtesy of Philip Taylor PT from Flickr

The Good

Well, of course, the good of borrowing money is we get money we need now.  That’s mighty convenient.  It opens a lot of doors for home owners, college students, aspiring businesspeople, and others.  Think about the ‘greatness’ of the concept.  You can acquire a product or begin a learning or business journey first, while thinking about money-related reparations later.  It’s a wonderful thing!  Not only is borrowing a possibility; it’s a thriving business.  Public and private institutions offer people money now, allowing them to pay later.  Take your pick of where to borrow money: from relatives, institutions, vendors offering short term loans, etc.

The Bad

Well, as obvious as the good points are, the bad points of borrowing are as obvious.  The money needs to be given back.  Moreover, more money (than borrowed) needs to be given back.  It’s a way of you paying for the immediate ‘convenience.’  But paying that money back is not so convenient.

Bad points related to having to borrow money include not being at an entirely improved financial position from when you first borrowed.  In some cases, borrowing only borrows more time, more cushion before the inevitable financial crisis.  The ‘bad’ of borrowing (ironically) involves digging oneself deeper in debt.  It’s an unfortunate reality of borrowing, but often a reality all the same.

The Not-so-Pretty

Debt is an anxiety producer at best.  It’s a life destroyer at worst.  Things can get pretty ugly for those in debt.  Don’t be amongst them.  One must be extremely wise when approaching short term loans or other lending opportunities.  Read very carefully through the fine lines.  Lenders, though offering a service, are in business to make money.  Borrowing is a short-term solution, but overall, is another eventual cost to you.


If you need to borrow money or thinking about short term loans, consider the following.

–  Consider borrowing money from relatives and family first.  It’s likely interest will not be an added cost to you.

–  If you do seek short term loans, carefully survey the vendor.  What is their reputation?  Have any prior consumers had problems with them?

–  Clearly understand how much time you have to repay and how much interest is involved through time.

–  Think about getting a second job.  Of course, the sentiment is not desirable; but it will help slow ‘the bleeding’ of money out of your estate.  Realize the immediate funds are to be repaid with interest.  Any incoming funds help a great deal.

–  Don’t get stricken with anxiety and make bad decisions out of fear and immediacy.  Think how to best proceed.  You’re in a tight spot.  How you proceed dictates things getting better or worse.

About Author | Amie is a finance guru, working with sites like Wonga, to find out about the types of clients she works for such as short loans / payday loans visit –

Category: Loans

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