Borrowing 3 month loans instead of payday loans

If anyone is ever looking to borrow finance that person must always consider a number of different things before they can then look to apply for any finance. First of all any possible borrower must know that they definitely need to borrow the money in the first place and then if so they will always have to only obtain a realistic amount and one that is affordable for the person so they can then repay the debt. The type of finance can then be chosen and here there can often be a high number of different borrowing options. Both short term loans could be available including payday loans as well as instalment loans. With the latter it is more common that people can borrow more and then they can repay the debt over a longer period of time. Credit cards are another very common way of borrowing money. Then as well as the type of borrowing being looked into the actual lender to apply through must also be chosen. There can be a number of different lenders out there and some are better than others so that is certainly something else to bear in mind.

borrowing-3-month-loans-instead-of-payday-loans

Take payday loans as the borrowing example as still a high number of people choose this as a way to satisfy their borrowing needs. I have certainly found that in recent years it seems more and more people turn to short term loans as a borrowing type and payday loans are certainly one of the more common ways of this borrowing. With these loans in particular it can be common that people borrow amounts ranging somewhere between £100.00 to £500.00 or in some cases more can be obtained. Then with payday loans the borrower will be required to pay back the loan in full with interest added just as soon as they are paid again from their employer. Now for a high number of different people repaying any loan in full will be tough and at times it won’t be affordable for people to manage. With payday loans high interest is charged and that makes repaying these loans that extra bit tougher. These loans are often declared as being a very expensive way to borrow small loan amounts for a short period of time.

As an alternative way of short term loan borrowing a high number of different lenders can grant people a form of instalment loan. People here can borrow similar amounts to that of payday loans so up to £500 but people can then have the ability to repay back the debt over a longer repayment term. 3 month loans for example can be borrowed so people at least can spread the cost for a set number of months. With any instalment loan for it to be classed as a short term loan it has to be repaid back to the lender within a twelve month maximum time frame. Here people will then find that they can have flexibility on the loan and this can help them repay the debt at are more affordable and sensible rate. Always remember with any instalment loan product however, the longer it takes to repay the loan, the more repaid back in total.

 

 

Advertisements

Why repaying some short term loans can seem expensive

When it ever comes time to borrow money, a high number of different people may or may know that there can often be a number of different borrowing options. This is just one of many different reasons why no one should ever rush into applying for finance and why it is always important that they explore the different options as to what is available to them. Then no one should ever rush into applying for finance nor should they take the first thing that becomes available and disposable to them. From the financial market place these days’ people can often look to obtain both short term loans and instalment loans when a loan is required. This way people have the ability to take out a range of different loan amounts for repayments then due back over a number of different repayment terms. Credit cards I have certainly found to be another very popular borrowing option. They of course allow people the chance to pay for different items as well as withdraw cash on credit up to set limit. Below is extra information focusing mainly on short term loan borrowing.

why-repaying-some-short-term-loans-can-seem-expensive

I myself has certainly noticed that in recent years more and more people have turned to short term loans when they need to borrow money. With these loans it is very common that people borrow small loan amounts for repayments then due back over a short period of time. It can be common that short term loans are obtained for amounts somewhere between £100 and £500 for people to then repay back the debt over a selection of different repayment terms. Any loan to then be classed as a short term loan must then be repaid back to any lender who granted the finance within a twelve month maximum period of time. Any loan that is then repaid over longer cannot be classed as that way of borrowing. These loans often provide people with cash quickly when it is needed and a payday loan is often a common way of this borrowing.

Short term loans can certainly be applied for and obtained quickly when people need usually relatively small amounts of cash. Another benefit of that way of borrowing is the fact that it helps people with bad credit get cash when it is needed. Short term loans are well known for helping people with bad credit. This can be useful for people who have their other borrowing options somewhat limited yet they need to borrow just a small amount of cash. Some financial direct payday lenders are the most likely providers of these kind of loans. They mainly aim their loans at people who have bad credit and for people who may have been declined elsewhere for finance. Now these lenders know that lending to such people can be risky as they may not repay that debt, it can then be because of this that some short term loans can then work out to be expensive.