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The Real Facts About Short Term Loans

If you are considering “Short term loans” for your emergency cash needs, get to know some truth about short term loans. There are always two sides to a coin and you have to decide if you still like to own the coin(http://www.lendingstream.co.uk/articles/short-term-loans.html).

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The Real Facts About Short Term Loans

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  1. Presents A,B,C of Short term loans

  2. About Short term loans… • For emergency expenses. E.g. Car break down, utility bills • Repaid within 15-20 days or on the first paycheck day • No documentation/collateral, quick approvals

  3. Why short term loans….? Perfect for last minute urgent expenses. Funds get transferred directly into bank accounts without any waiting period. Instant cash through short term loans Funds in one hour or less. Simple convenient loan application through online portals

  4. NOT Short term loans!! Why? • Interest rates are higher than regular loans • Delayed payments pile up debt leading to bankruptcy. • If used irresponsibly, can lead to endless debt-cycle • Debt situation may aggravate if lenders charge additional default charges apart from the interest rates.

  5. Who can get short term loans? Eligibility for Short term loans is lenient compared to bank loans • Applicant should be at least 18 years old • Should be a UK resident • Should have a valid bank account • Should earn a minimum of £250 per month • Interestingly, applicants with bad credit scores can also apply and receive loans

  6. Applying for short term loans? Watch out… • Compare the interest rates of different payday lenders • Choose the one with the lowest interest rate. • Do NOT go for short term loans to buy luxury goods or do impulsive shopping. • Make payments on time to avoid delayed payment fee. E.g. A loan of £100 can attract interest as big as £25 to £50 per month depending on the APR. • Choose the lender who has flexible payment plans

  7. Payday loan debt • The debt rate of individuals in UK has hit an alarming rate • According to Creditaction- a UK credit watch dog, “ Individuals owe more than what the whole country produces in a year.” • The main reason behind the growing debt rate is due to customer’s inability to payback loans on time especially due to the huge interest rates.

  8. S{C}hocking facts about debt in UK £ • £57,737 average household debt • Every day £180 million is paid as personal interest • Every 14 minutes a property is repossessed • Every 3.78 minutes someone is declared insolvent or bankrupt • £357,500,000 daily increase in Government national debt (PSDN)

  9. Who can help if you are in debt? There are several debt relief experts who provide free and confidential service to people who seek debt relief. Some of the popular ones are listed below: • Citizens Advice Bureau • Consumer Credit Counselling Service • Debt Relief Order [DRO]

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