As the due date on your short-term debt approaches, you may feel anxious about what you are going to do, especially if you don't think that you have the money to pay it off. You do have options in handling short-term debt that is coming due. Each choice has potential drawbacks, such as high interest rates or a higher overall cost, so you should carefully consider your options for paying short-term debt.
Paying it Off
Paying off your short-term debt is the best solution to your problem. As the date approaches, try to find ways to come up with the money. You may be able to raise the total amount by working a few extra hours, taking on odd jobs or selling items that you no longer need.
Refinancing
It may also be possible to refinance your short-term debt giving you more time to pay it off. Talk to your lender to see if this is an option for you. Be upfront and tell them what you can pay and how long you think it may take to repay the loan.
Debt Consolidation
If you have many other debts, you can consider debt consolidation. In a debt consolidation loan, a lender gives you enough money to pay off all of your debts. You are then only responsible for paying this one loan back, which could reduce your monthly payment, making it easier for you to get out of debt. If you go this route, you'll be able to include the short-term debt in with your other debts.
Balance Transfers
If you have a credit card, you may be able to transfer the balance of your short term debt to your credit card. This will pay off the short term debt, but you'll have to pay additional interest on your credit card, depending on the terms of your account and how quickly you can pay the amount in full.
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