No one likes having a loan hanging over their heads. A mortgage, because of its size and nature is one thing but if you do need to borrow money for remodelling your home or a luxury holiday, then a short term, fixed loan might be the best option.
1. Take control of your finances
A short-term loan that allows regular repayments is a good way of keeping in control of your finances. If you approach a company such as Car Cash Point, you’ll be able to repay the loan in manageable weekly or monthly repayments, with your car as an asset, so you should still have money in your budget for an unusually large bill or other nasty surprise.
2. You don’t want to pay for your holiday 10 years after you return home
If you’ve borrowed money for a holiday and you’d like to repay the loan while the memories of that trip are still fresh in your mind. A short-term loan is the answer in this situation.
3. Short-term loans will always be popular
A recent article on the This is Money website suggests that short term loans where the repayment terms are clearly defined and there are no hidden charges or arrangement fees are a convenient method of borrowing for those with a bad credit rating or can’t borrow from their bank.
4. Short-term loans are great in emergencies
If you’re stranded, strapped for cash and don’t have an overdraft facility with your bank, then a short-term loan is the ideal solution. As long as you’re realistic about your repayment capacity, then one of these finance options can help out in a difficult situation.
5. Unexpected treats
Occasionally life throws up pleasant surprises, as well as curveballs. If you have a credit card and it’s maxed out, then a short-term loan allows you to take advantage of an unexpected treat and enjoy a pleasurable experience.
6. Long-term credit card loans are expensive
If you owe money on your credit card and are only able to meet the minimum monthly repayments, the accrued interest combined with the original loan will keep on rising. A short term loan is a simpler way of accessing funds and making repayments.
7. Balance your budget with a short-term loan
If you know how much you need to borrow, and are aware of the amount you need to repay on a monthly or weekly basis, you’ll have better overall control of your finances and will be able to budget accordingly.
8. Shop around for the best short-term loan to suit you
An article in The Guardian describing the popularity of short-term loans advised borrowers to shop around. The article also cited the dangers of loan sharks, as a result of the recent Financial Conduct Authority’s (FCA) cap on payday lending. Over 70,000 borrowers will find problems when trying to access a payday loan under the new regulations.
9. Families are expensive
Children cost money. School trips, new clothes and other various expenses mean that those on a low income may have to borrow money, in order to keep up with their kid’s demands.
10. Illness costs money
If you become ill and need extra heating or over the counter medical supplies a short-term loan can stop the worry of this situation.
So there we go, ten reasons why you should always opt for a short term loan. Just remember, when taking on debt to seek free financial advice and work out what you can repay, before signing any contracts.