Are you looking to borrow money to pay off debts or to tide you over during a financial crunch? Here’s how you can do so without paying any interest on what you borrow.
Going from pillar to post trying to raise funds is never a fun or particularly easy task. After all, scrounging for money can lead to one sleepless night too many. How many times have you moped over your empty bank account or all those unpaid debts that have piled up over the years?
Well, you could always apply for a Personal Loan. In this day and age, getting a Personal Loan is easier than ever, considering the entire process is completely paperless and your loan could get sanctioned with a couple of days.
Additional Reading: Everything You Should Consider Before Getting A Personal Loan
However, if the interest you have to pay on the loan is what’s scaring you off then here are other ways you can borrow money without having to worry about the specter of interest hovering above you.
Ask Friends And family
While borrowing money from friends and family may be a bit ‘undignified’, if you’re down in the dumps financially then it’s probably time to swallow your pride and ask them to bail you out of your predicament. A little groveling could go a long way too while you’re at it.
Usually, your friends and family will help you out financially more often than not, and they probably won’t ask you to pay any interest on the amount you borrowed either, unless they’re a bunch of cutthroats. Also, they may allow you to pay the amount back over a substantial period of time, which can give you the leeway you need to get your finances back on track.
However, just because they’re close to you doesn’t mean you should take advantage of their trust. Make sure you pay them back as you promised or it could severely strain your relationship with them.
Additional Reading: When A Borrower Fails To Repay The Loan!
Get A Credit Card
Believe it or not, you can actually use your Credit Card to make payments or make purchases without paying an iota of interest on the amount you spent. If you’re wondering how, well it really is quite simple.
Credit Cards give you an interest-free grace period that starts from the time you made the purchase with your card up to the due date of your minimum payment. The time period typically ranges from 21 days to 28 days. During this period you can use your Credit Card to make payments and purchases without incurring any interest whatsoever.
All you have to do is ensure that you pay the outstanding amount on your Credit Card in full before the due date and you’re in the clear. Remember, if you delay making your payment even by a day, you will be charged interest and you certainly wouldn’t want that to snowball out of control.
Additional Reading: How The Interest-Free Period Is Calculated On Your Credit Card
Consider A Balance Transfer
Balance transfers are great ways to borrow money for an extended time frame without paying any interest on the amount. Look for a balance transfer Credit Card that offers 0% interest rate for the first six to twelve months or beyond. These are usually introductory rates that are offered to entice customers to make the switch from one Credit Card issuer to another.
Once this introductory time period is over, the interest rate will revert to the original interest rate that the card comes with. In effect, a balance transfer involves the transfer of debt from one Credit Card with a high interest rate to another Credit Card of a lower or zero interest rate.
Additional Reading: How To Use Balance Transfer To Cut Down Existing Credit Card Debt
There you have it. A few nifty ways to borrow money or make purchases without having to pay interest on the amount. However, always remember to make your payments on time and clear your debts as quickly as possible.
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