Taking out a loan is not always the best option when you need cash.
However, if you find yourself in a bind, there are a few guidelines that you should follow to ensure you get the best deal.
Your first step in considering borrowing to pay bills is always to look inward first, according to Winnie Sun, a financial advisor.
Sun, co-founder of Sun Group Wealth Partners in Irvine, Calif., Said she called the practice “for profit shopping.”
The idea is simple. You go through each item in your budget and see where you can find money to save. One big opportunity right now, according to Sun, is your auto insurance premium. Many people drive less cars and are able to renegotiate their tariffs due to their lower usage.
If you’ve run out of all your budget and still need money, Sun has a few other suggestions for you. Check out this video to see your options and what rate they think is appropriate.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.