In our modern economy consumers are becoming increasingly better able to manage their costs on a weekly or monthly repayment basis, for the vast majority this is monthly. This means the things which perhaps were previously repaid on an outright basis, are now being managed via affordable monthly instalments. Take for example car tax or TV licensing, two everyday costs which many consumers now prefer to manage on a monthly basis instead of having to make an outright repayment once a year or so on. This applies to many areas of our expenditure, whether it be car insurance, online purchases or our mobile phone costs. In fact in our modern society many consumers simply do not have the resources to make normal living costs in a single and one-off repayment. As the years have passed consumers have applied this logic to manage of lending too and this is particularly the case with short term loans, such as those offered by Lending Stream.
Lending Stream is a typical example of a short term loans lender who offers the ability to borrow a small amount of money online. Short term loans have been available online for nearly a decade but the product present today is very different to what once was. In the past short term loans were based on a single repayment offering, this meant consumers were granted a small loan on the understanding the full amount would be repaid on the agreed date. Like so many things and as time passed it became clear that it was difficult for a large proportion of consumers to effectively manage and repay this style of repayment and in the last year the type of product has changed. Nowadays consumers using the likes of Lending Stream can expect to be offered an instalment loan.
Taking Leading Stream as an example they offer their potential customers the opportunity to borrow a small amount of money, typically in the region of £300.00 to £400.00 to then be repaid over 6 monthly instalments. This means like so many lenders, they have moved away from asking their customers to commit to a lump sum repayment. By offering 6 monthly instalments it is clear what level of commitment the company is asking and in doing so makes the loan generally easier to budget for. Any applicant considering such a loan needs to assess and understand their budget for the next 6 months going forward. This means ensuring as potential customers, we know what the demands and restrictions of our existing budget are.
This means ensuring having accounted for the costs linked to our normal living expenses, such as rent, travel, food or existing credit that we have the means available to afford the 6 instalments which will be set out to us. The best way of understanding this is to complete a simple budget listing all our outgoings versus incomings and calculating the proposed repayment to be deducted from the amount which is remaining from these two amounts.