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5 Surprisingly Easy Ways To Borrow Money For Free

5 Surprisingly Easy Ways To Borrow Money For Free

There’s no shame in borrowing money. Almost everyone does it, whether it’s a mortgage, credit card, or line of credit.

There are very good reasons to borrow and many times, it can be a smart financial decision, like when borrowing to buy a home that appreciates in value, or buying a car that gets you to and from work. Other times, borrowing can help alleviate an emergency situation, like when used to fix a leaking roof.

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What we want to focus on, are the opportunities to borrow for free. Most of these opportunities are riddled with landmines intended to trip you up. But, play your cards right and you could be funding your dreams with someone else’s money.

Credit Card Grace Period

Almost every credit card will give you an interest free period from the time that you make a credit card purchase, to the time your minimum payment is due. The period between the time you receive your credit card statement to your payment due date is called the grace period. It’s usually between 21 and 28 days long. That means you get to use your credit card, earn points, and once you receive your statement, get an additional 21 days to make your payment, all without ever incurring interest.

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Just make sure you’re never late making a payment. If you’re late by an hour, most credit card companies will remove your grace period privilege the following statement period, and start charging you interest from the day you make a purchase on your credit card.

Balance Transfers

Balance transfers are an incredible opportunity to borrow money interest free for an extended period of time. Let’s say you currently have a credit card balance with a 19.99% interest rate. A balance transfer shifts the debt from the higher interest rate card to a balance transfer card that often comes with an introductory rate of 0% for 12-20 months.

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Because there are so many 0% balance transfer offers in the market, you can be pretty aggressive in exploiting them to your advantage, probably the most common is call balance transfer surfing. Essentially, a month or so before the expiry of your 0% introductory rate, you will get another 0% balance transfer card and transfer your balance yet again. Rinse, wash, repeat.

Deposit Transfer

Let’s say you have a credit line you need to pay down. A balance transfer won’t do you any good, since it only pays down existing credit card balances. What you can do instead with a deposit transfer is shifting money from your credit card to your checking account at 0%. You can then use that money for anything you like, including paying down your line of credit. Although not as prevalent in the United States, several balance transfer credit cards in Canada and the U.K. also offer deposit transfers.

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0% Intro Rate

If you don’t have a credit card balance, but you need to borrow money and you want to do so at 0%, look for credit cards that offer 0% on purchases. These deals will typically allow you to borrow up to your credit card limit during the first 90 days or so, and then have a 0% interest rate for the following 12-24 months.

No Interest, No Payments Sales Financing

Ever walk into a furniture or hardware store and see an advertisement for 0% financing for 12 months? These are great deals, where the retailer is paying you to take the item now, versus later. Some of these sales financing loans don’t require you to make any payments during the 12 month period, others require you to make some interest-free fixed payments. Whatever the case, always be prepared to pay the loan back in FULL on the due date. If you miss your payment, often times the lender will retroactively charge you interest from the first day you took the loan.

As you can see, there are plenty of ways to borrow at 0%, whether you’re looking to cut interest rates on your current debt, or looking for a new loan. The one recommendation we have is to always set-up automatic repayment of your loans, so that you’ll never be late.

Featured photo credit: Flickr creative commons, Benjamin Smith via flickr.com

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Marc Felgar

Marc Felgar is an aging, health & senior care expert focused on improving the lives of mature adults.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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