Category: Short Term Loans

Will Short Term Loans Work for me?

It can be a good idea to have a think about any loan that you are considering taking out to decide whether it will work out for you before you take it out. Loans will cost you money and are a big commitment and so you need to have a good think about whether you are up for taking that on. With a short term loan there are a few specific differences between it and other loans and this means that you will need to consider this one carefully.

Has to be Repaid Quickly

With a short-term loan, it will need to be repaid quickly. This could mean on the day you are next paid, if it is a payday loan or it could mean in a few instalments. This means that you will need to find the money to repay the loan fast. If you are not borrowing too much, then this might not be too difficult, but if you are borrowing quite a bit then it might be tricky. It is sensible to find out exactly what the expectations will be with regards to repayments and work out if it is something that you will be able to cope with. Make sure that you think carefully about the money that you have coming in and what sorts of things you normally have to pay for so that you are able to check that you will have enough money to spend.

Only Lends Smaller Amounts

A short term loan tends from a payday lender (no brokers) to only lend up to £1,000. This can be a big advantage if you only want a smaller amount as you could find that otherwise you might have to borrow more money than you want. This can be annoying as you end up with a big debt and a big responsibility. You may like the fact that you can get extra and treat yourself, but it will mean that you will have to repay for longer. Of course, if you need a larger amount, you will have to use an alternative type of loan.

Can be Arranged Quickly

A short-term loan tends to be able to be arranged quickly. It can even be possible for some loans to be arranged within a few hours. This means that if your need is urgent then they can be very useful. Often loans will take a lot longer to arrange and you will find that you will have to wait a good few days or maybe even weeks to get your money. This means that if you have an urgent need then a short-term loan could be better. You will have to check with the lender though to find out what they will be able to offer you. They may be able to organise it really quickly and you may even find that they operate at weekends and overnight and so you will be able to get money whenever you need it.

It is really important that you find a loan which matches closely with your needs. Hopefully you will have the time to investigate different types of loans before you borrow and then you will be able to choose one that will be best for you. It is good to note down your requirements and then you will be able to match them up to the loans and work out which ones are the best. It is wise to spend some time doing this as it will mean that you will have a much better borrowing experience as a result and you may even save some money by finding a cheaper loan as well.

Are Short Term Loans Good for Paying for Home Repairs?

If you need to make a repair on your home then you may find that you will have to think hard about how to pay for it. If you do not have the money available to you to do this then you might have to make a decision about what else to do. It is a good idea to give it some careful thought though as different decisions will have different consequences.

Use Savings

If you have some savings then it can be a good idea to use these if there is enough. This is because you will be able to get the repair done right away and you will not have to pay the additional costs associated with borrowing. However, some people may not like the idea of using their savings like this. They may feel that the money is there for an emergency and they want to leave it there, but if this is the case it is worth considering whether this is an emergency or not. You might also be saving up for something specific and so might be reluctant to use the money that you have other intentions for. However, you need to consider whether it is worth the cost of the loan and whether it will be better to use the savings and pay back into them, rather than use a loan and have to repay that with interest as well.

Save Up

If you have the time, it could be a good idea to wait until you have saved up the money before you pay for the repair. This may or may not be possible though. You could find that you will need to attend to the repair quickly or else it will cause more damage. Something like a leaking roof cannot wait but if your kitchen needs modernisation then you could wait until you have saved up. So you will have to judge this on whether it is possible for you to wait for the job to be done or not.  

Borrow Money

If you have no savings and you have no time to save up, then you only option will be to borrow some money. This might be easier for some people than others. If you have a good credit record then you will be able to choose between lots of different types of loans. However, if you do not, then you will be more limited. You will have a choice between a few though. In either case it is important to make sure that you choose the right type of loan. You need to make sure that you find one that will give you enough money to pay for the job that you are doing as well as having repayment terms that suit you. It is a good idea to find out first, what you will be expected to repay and when so that you are able to work out whether this is something that you will be able to afford. You also need to find out how much the loan will cost and that will enable you to be able to decide whether you feel that it will give you good value for money.

With regards to a short term loan, you will have to repay it quite quickly which means that you will need to think about whether this will work for you. Will you have the money available to pay it and even if you do will that allow you to be able to afford everything else that you need as well? It is good to do some calculations to work this out.