Options when Money Runs Short

Perhaps you knew this was coming, or maybe it completely blindsided you. Either way, you are facing a huge problem that many before you have faced—running out of money. If this happens to you it is critical to keep a positive attitude, as with the right strategy you can get through almost anything. The good news is there are ways to dig yourself out of any hole you got yourself into when it comes to your finances.


To start off with you need to think about what exactly caused you to run out of money. Were you overspending? Or was your money management flawed? Was it something that was out of your control due to being unforeseen? Either way, you need to understand where exactly your finances went astray in order to ensure that it does not happen again. Do not be too hard on yourself, and remember that anything that doesn’t kill us will make us stronger.


If you have bills that are due and credit card payments that need to be made then don’t be afraid to negotiate with a lender. It does not hurt them to ask to waive any late fees that they place on your bill. Often times a lender will be more concerned with making sure that they eventually get their money then if they get their money late, and so they’d rather take a late payment then no payment at all.

Take Out a Loan

If you need money right away then you could consider taking out a loan. There are many different types of loans you can get including a secured loan, unsecured loan, payday loan, etc. Before you decide which route to take it is critical that you weigh the pros and cons of each. It is also important that you know your credit score, as this will have a huge impact on the type of loan that you will be able to get. Keep in mind that if you have horrible credit or no credit at all then you will still be able to obtain a payday loan, however this loan comes with a much higher interest rate, and so you should proceed with caution.

Open a Line of Credit

You may want to consider opening a credit card if you run out of cash, however you should be cautious with doing so. There are both advantages and disadvantages when it comes to this type of method. An advantage is that credit card debt is unsecured and so you won’t be at risk of losing any of your assets if you are unable to make payments. The disadvantage of this debt is it tends to carry a steep interest rate, and may make your financial situation worse if you are unable to make a payment at the end of the month.

Borrow from Family or Friends

If you have a family member or friend who is willing to lend money to you then you may want to consider taking this option. Family and friends generally won’t charge you a high interest rate, or any interest rate at all and so you can more safely borrow money this way. However, keep in mind that taking money from a family member or friend could put a strain on your relationship with them.