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.

 

 

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.

Short Term Loans and the Different Repay Terms Which are on Offer

Short term loans come in a range of different sizes and repayment terms. The modern day lender of such loans aims to deliver a resource which is not only flexible but also considerate of the realistic needs of the modern day consumer. Where things have changed in this market is fundamentally down to a new regulating body who is responsible for the overall operations of the lenders. This new regulating body is the Financial Conduct Authority (FCA) and since they were introduced a few years ago, the marketplace has been completely transformed. Not only do lenders now have to be FCA approved if they wish to offer lending options but the options they do offer need to meet the rules and regulations newly set out by the FCA. This means as consumers we can be confident that any of the lenders we consider, they will effectively have the FCA’s backing in terms of both product and service.

Terms of Short Term loans

Terms of Short Term loans

In order to help ensure the product being offered is truly flexible, short term loans lenders offer choice when it comes to how their loans are repaid. This can be delivered thanks to the introduction of instalment based repayments. This means when applying for these sort of loans it is likely you will be presented with a selection of different repayment terms. This could mean for example, repayment split over 1, 2 or 3 months for example or could mean 3, 4 or 5 monthly instalments. Depending on the loan amount being requested it is not uncommon for short term loans lenders to offer repayment terms up to 6 months and in some cases beyond this amount of time. Quite sensibly the more that is being requested to be borrowed will result in the longer repayment terms being offered.

Take for example a £500.00 short term loans lender. Given that often short term loans are granted for average loan amounts of £300.00, a larger loan amount as with this example may mean longer repayment terms. Whereas for many of us repaying £500.00 as a single repayment, when interest is accounted for, is most likely a too costly option, making a number of pre-agreed monthly instalments at a lower rate is likely a sensible choice. Of course for those of us only looking for a £100.00 short term loans lender, it may be that we have the resources to repay this level of borrowing, with the interest payable, as a one of payment. So the term of repayment being offered by any short term loans lender will have the loan value directly in mind. As well considering the loan amount being offered, short term loans lenders will also take into account an applicant’s ability to afford the requested loan. This means viewing information available from Credit Reference Agencies as well as budgeting information supplied by the applicant at the point of applying. A collective understanding of all of this information is ultimately what allows lenders of short term loans to make an informed decision regarding any submitted application.

Payday Loans can Often be an Expensive Finance

When it ever comes time for someone to borrow money, there may be some different people who do not know exactly what borrowing options they have. They may just not know what different options they could be entitled to and for this reason it is never wise to ever rush into applying for finance before the different options are looked into. Some finance types are certainly better than others in what they can offer to people. From the financial market place these days’ people can look to obtain both short term loans such as payday loans and instalment loans if a loan like borrowing is required. This way people can then look to borrow a selection of different loan amounts for repayments then due back over a number of different repayment terms. As well as loans people can also look to credit cards as a way to borrow money. This is another very common way to obtain finance. It can allow people the chance to pay for different items as well as for them to withdraw cash on credit up to a set limit and this is then done by the use of the card itself.

Payday Loans Often Expensive Finance

Payday Loans Often Expensive Finance

In this article I am focus solely on payday loans and other short term loans and explain what these provide to a range of different borrowers who need to obtain cash. I have certainly found that in recent years it seems more and more people have turned to this way of borrowing as a way to obtain finance when they need to. When I say this way of borrowing I mean payday loans and other short term loans. This can often be a way for someone to obtain a small cash amount of usually up to £500.00 for that person to then repay the debt back over a number of different repayment terms. For any loan however, to be classed as a short term loan it must be repaid back to the lender within a maximum time frame of twelve months. These loans are commonly known to help people get cash quickly but for a very limited period of time. Some of these short term loans can be expensive.

When people think about short term loans they will most likely start to immediately think about payday loans. Now although payday loan from payday lenders is a common short term loan when available it is certainly not the only way of short term loan borrowing. With some of the loans people can borrow the same kind of amounts than payday loans but they can then look to repay this debt over a number of months rather than clear the loan in one go which a payday loan would require. This may be a better kind of borrowing as people can get a small cash amount as before but they can then spread the cost of the debt over a repayment term that suits both them and the borrower. This will be easier than clearing the debt in one go as a payday loan would always require.