by Amon Karagara

Created on: March 13, 2009

Have you ever felt the need to borrow money but you begin thinking about the interest that you will end up paying on the borrowed funds? Well, you are not the only one. When most people think of borrowing, the first thing that hits their mind is the interest they will end up paying. However, there are certain ways in which you can borrow money and still pay no interest.

INTEREST-FREE PURCHASES. There are lots of stores out there who offer zero interest for a certain period of time, usually a year or more, to those with good credit. So, if you can qualify for such an offer, and you are able to pay off the balance within that time frame, you will essentially be borrowing interest-free. Most ot the time, it is the items that we use in our households, such as furniture, televisions, refrigerators. So, for as long as you have maintained a good credit rating, consider such financing offers; they are everywhere in the market.

PAY YOUR BALANCES ON TIME. Paying off the total amount you charge on your credit card is another great way to borrow money without incurring any interest charges. Most people get into credit card debt because they pay just the minimum or slightly more and carry balances to other months. But you can avoid this by using only what you will pay before the end of your monthly statement day, thus using your credit card company's money for free.

INTRODUCTORY OFFERS ON LOANS. Some lenders offer zero-interest introductory offers, usually for six months. Again, this depends on your credit rating, so you should work hard to keep your score up. Also ensure that you will not use more that what you can pay for within that time frame, otherwise normal interest rates will begin to accrue after the introductory period ends.

BALANCE TRANSFERS. The competitive nature of credit card companies has led to most of them offering zero percent interest on balances transferred from other companies. Search for such offers and pay off your higher interest balances for free. However, some banks charge a transfer fee, so make sure you to look for one that does not charge a fee for this transfer.

FRIENDS AND FAMILY. If you are not able to get utilize any of the above offers and deals, and you really need money before your income comes in, consider borrowing from your friends and family. This usually applies in the short term and is also a good way of avoiding the temptation of falling into debt, as long as you pay back the borrowed money as promised. Friends and family don't normally ask for interest on their money.

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