Short-Term Loan Options
Friday, November 03, 2006
Although many people see loans as a long-term financing option,
there are some short-term loan options available as well. These
short-term options range from a year to just a few weeks. If
you are in need of money fast in the short-term, then you
should look at the short-term loan options available to you.
Here is some information about those options and help they can
help your finances.
Why short-term loans?
Although there are other forms of borrowing that might be more
appropriate for the short-term, loans are also an option for
short-term borrowing. If you have had unexpected money problems
and need some money fast but don't want to be paying the amount
back for years, then a short-term loan might be a good options.
Short-term unsecured loans
One of the short-term loan options available if you want to
borrow a fairly large sum of money is to get a regular
unsecured loan over a short period. You can borrow a few
thousand pounds and pay it back over a year. Although a year
isn't a very short time, it might be cheaper than using a
credit card and be quicker to pay off. If you require a larger
sum of money, then this is one of the best short-term options
available to you. Although you have longer to pay back the
loan, the interest will be lower than other shorter-term loans.
Payday loans
Perhaps the most short-term loan available on the market these
days is the payday loans. Payday loans or cash advance loans
are given to people who need a little extra cash until their
next payday. Loan terms are very short, and range from 1 week
to a month or two. These loans can be got hold of very quickly,
and you can usually borrow up to £500 depending on your
circumstances. Of course, this convenience is at a price, and
the interest rates are very high. You usually pay around 10% of
the loan amount to get hold of the loan, and pay this amount
again every time you cannot pay. These loans are great if you
need a little cash injection until you get paid, but if you do
not pay the loan back then you could find yourself paying as
much in fees as the loan cost in just a few weeks. However, for
very short-term lending these loans are the best option.
Alternatives
Of course, the major alternative to short-term loans is the
credit card. Credit cards have fairly high interest rates, but
they are convenient and if you already have one then you can
use the money straight away. For short-term borrowing, they are
one of the best options around. However, because there is no
real time limit on paying the money back, they can drag you
into debt quickly. If you need small amounts of money over the
short-term, then you should consider loans as an option,
because you have to pay them back in a definite period. Some
have lower rates than credit cards, and can help you to stay
free of debt.
About The Author: Peter Kenny is a writer for
http://thriftyscot.co.uk, please visit us at
http://www.loanwize.co.uk and
http://www.thriftyscot.co.uk/Loans/
posted by Dennis Cheesman @ 6:48 AM,
