401K Retirement Fund Loans

Some financial advisors will warn you against dipping into retirement funds while others have found this source a real blessing. Your employer may or may not allow loans against your retirement nest egg.

The IRS requires that the funds be paid back within five years or penalties will be levied. Also, if you lose your job, your employer may have the option of calling the loan - all of it!

Life Insurance Loans

Many whole life policies will allow loans to be made against the face value of the policy. The loans are almost automatic as they're fully secured by equity in the policy and the interest rates, which used to be extremely low, are still lower than some other sources. But unless you've had your policy for a very long time, the amount you can borrow will probably be quite limited.

Repayment of insurance loans usually have no time limits which can be a plus. The interest is not tax deductible however.

Personal Loans from Friends or Family

If you go this route there are two things to keep in mind. First you should formalize the loan by drawing up and signing a formal contract just to keep things businesslike. Second, always remember that borrowing money from a friend is a nifty way to destroy a perfectly good friendship.

Credit Unions of Labor Union Fund Loans

If you can qualify for membership, these are excellent sources for low interest rate loans or new credit cards.