Short term loans are available in a number of different variations. Fundamentally short term loans are designed to offer consumers the ability to borrow a small sum of money over a pre-agreed short period of repayment. Short term loans are not therefore designed to compete or replace larger or longer term credit facilities and instead are designed to offer a different type of support. Of all the various different forms of credit facilities which are available to consumers the short term loan is actually one of the newest; even given its decade long life span. Before these loans consumers did not truly have accessible short term borrowing resources at their disposal. There were high street providers who could offer small loans, often in exchange for personal goods such as jewellery or electrical items but for those consumers who did not have the ability to exchange such things the options were further limited. When short term loans became available online it quickly became clear that this was a resource which had been lacking. Unlike ever before consumers now had the ability to borrow on a small scale and furthermore via a discreet and quick application process.
Short term loans even up to this day are offered via the means of an online based application form. This means the process can be completed as and when is most suitable to the individual and disposes of the need to visit the potential lender in person or via a telephone conversation. The need to communicate in these ways had always been the case previously and with larger forms of borrowing, such as a bank loan or hire purchase. Short term loans were therefore different and did not demand that the applicant take time out of their normal day to visit the high street, fill out lengthy forms or spend considerable time on the phone. Instead applicants of short term loans have the ability to complete the application via the internet and this means any device which supports such function. Given the fact that most consumers nowadays either have a smart phone, laptop or tablet; all providing internet functionality, short term loans were therefore deemed a straight forward and discreet way of borrowing.
The options presented by short term loans lenders are designed to not only facilitate small borrowing requirements but in addition aim to so in a flexible manner. These loans usually start from amounts of £100.00, meaning loans can be applied for from £100.00 up to usually around £300.00 for first time borrowers. Many lenders offer higher loan amounts, up to £1000.00 in fact but such loans are normally only made accessible after a proven record of repayment has been established through previous borrowing. The lenders of such loans are keen to make sure that the repayment terms being offered are deemed as flexible and this means delivering a good selection of loan repayment terms. In order to achieve this often short term loans are offered in a range of instalment based repayments. This means the borrower can make a selection based on monthly repayments, selected at the point of applying for the loan. Given the selection of short term loans lenders which exist, thankfully the terms of repayment available are pretty extensive. A little research into just a few of these available lenders will highlight the range of terms which exist. This could mean choosing to repay over 1, 2 or 3 months or perhaps 3, 5 or 6 months for example.
Whichever short term loans resource is selected it is important to ensure adequate consideration is given to how repayments can realistically be made. This means then being fully aware of existing financial requirements and furthermore restrictions which may rule out certain loan amounts and the repayments they demand. The completion of a monthly budgeting plan will help an individual understand this information more clearly, given its quick and simple ability to list all monthly incomings and outgoings. Many consumers sensibly decide to refresh their budget on a month in and month out basis, given the ability for financial commitments to alter from month to month. Refreshing a financial budget or planner can ensure irregular commitments are not missed and instead are correctly included in forthcoming budgets. Many consumers who do not use budgets later find that managing their finances in a sensible and affordable manner is much more difficult to do and instead are left with the concern of ‘where did all my money go’ before the point at which their next salary amount is received. It is for this reason that budget planning and short term borrowing are like any form of credit, so closely linked.
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% Maximum APR 1351%
Warning: Late repayment can cause you serious money problems – For help, go to moneyadviceservice.org.uk
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Author: Internal Marketing Department