Better Short Term Loans
Warning: Late repayment can cause you serious money problems
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Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%
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Author: Internal Marketing Department
When it comes to credit financing, getting a short term loan is one of the things that you could do. As you well may know, money really does not come easy these days and that’s why it is important that you learn how to find ways to cope in emergencies that do not mean you sink under a mountain of debt..
Some people are scared of getting short term loans, and they would be right to be so. However with proper research and consideration they can be a lifesaver.
A short term loan would be able to improve your financial situation for the better for a couple of reasons. Some of which include:
- It’s great for emergency funds. No matter how much you plan, sometimes, fate just comes into play and it makes you realize that you could be in need of extra cash. For example, one of the items you need for everyday life just malfunctioned. Of course, you have to replace it but what if you don’t have enough money on hand, and you have to use your money to pay the bills or other expenses? Well, you need to ask for help, and a short term loan would surely be able to cover such expenses for you.
- You can decide when you would pay, as long as you do it in a matter of 2 to 12 months. Depending on your lifestyle, you can choose when exactly you would pay for your debts so that things could go smoothly and so you would not be pressured. With some lenders you can choose to pay weekly, monthly, or even just the whole thing at once and there are deals that would help you understand which payment terms are best for you—and that’s definitely something good.
- And, your debt won’t be there for a lifetime. After a year or less, you’ll be out of debt and you can finally move on with your life!
With the help of a short term loan, you’ll be able to provide for your company even better so it could flourish in the future. If you have to, try it and see what it can do for you.
However, as well as the benefits, there are also the disagvantages
- They are expensive. Even though these loans have now been capped by the regulator they are still no cheap borrowing. Lenders can charge up to 80p per £100 borrowed per day. 80p doesn't sound a lot, but that is £24.00 for a 30 day loan of £100.
- They can be unaffordable. They can be unaffordable. While lenders are obliged to assess the affordability of a loan, they often rely on information provided by you to do this. If you lie, or forget certain bills you could end up with a loan that you cannot afford to pay
- They can be addictive. For some people seeing that £300 arrive in your bank account can give such a warm feeling of contentedness and pleasure that when it is gone some people cannot resist the temptation to borrow more. They forget that whatever is borrowed needs to be repaid with interest and can get carried away...into debt.
So now you hopefully know more about these loans than you did when you started.