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Taking out a loan isn’t always the best option when you need cash.

But if you find yourself in a bind, there are a few guidelines you should follow to make sure you get the best deal.   

Your first step when thinking about borrowing money to pay bills should always be to first look inward, according to Winnie Sun, a financial advisor. 

Sun, co-founder of Sun Group Wealth Partners in Irvine, California, said she calls the practice “profit-shopping.” 

The idea is simple. You go through every item in your budget and see where you can find money to save. A big opportunity right now is your car insurance premium, according to Sun. Many people are driving less and can renegotiate their rates based on their lower usage. 

If you’ve gone through your entire budget and still need money, Sun has a few other suggestions to share.  Check out this video to see your options and to learn what interest rate she considers reasonable. 

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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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