Borrowing money can be a useful way for you to achieve specific goals. However, there may be alternatives to borrowing that give you better results.

• Savings. Look here first. Of course, it is not wise to tap into your emergency fund, but if there is extra cash, you will want to look at this option before borrowing.
• Selling assets. Selling shares of stock, or perhaps a piece of property that you inherited, could make better financial sense than borrowing. Don't misunderstand—we are not advocating that you hock your valued possessions. What's more, the value of your possessions may have been slashed by the market crash and the recession and waiting for their value to rebound may be a better alternative than selling them at a steep loss. But selling an asset before you borrow money is at least worth evaluating.