If you need to get money now, then you may end up making unwise decisions about getting money. It is worth trying to stay calm and not panic and maybe even discussing things with a friend before you make any rash decisions. One direction that you can go in is to borrow money form a short term lender. It can be scary doing something like this as you may have heard bad things about them. Perhaps you have heard things like:
It is true that the rates can be higher than other types of lending and this is because the lenders are taking more risks as they lend to those with poor credit ratings. However, there are some conventional types of lending that can be even more expensive if you do not manage the loan well and so you need to be careful.
It is true that the rates can be higher than other types of lending and this is because the lenders are taking more risks as they lend to those with poor credit ratings. However, there are some conventional types of lending that can be even more expensive if you do not manage the loan well and so you need to be careful. You will only have to pay back huge amounts if you miss repayments. However, as short term loans are regulated, the companies can no longer charge unreasonable amounts and so you have some protections.
This can happen if you take out a loan to pay off a previous loan. This is something which can again happen with any type of lending. However, if you make sure that you set up a repayment schedule that you can afford, then you should be able to manage those repayments and not get into a circle of debt.
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
If you do keep borrowing more and more money, then it will almost certainly make your finances more and more difficult to cope with. However, there is no rule that once you take out one short term loan; you have to take out another. It is wise to just take out the one loan and repay it before contemplating borrowing again. It is worth considering how you will budget to afford the repayments and carry on those ideas so that you can avoid getting into the situation where you need to borrow money again.
So despite all of these bad things you may have heard about short term loans, there are actually many advantages to taking them out for some people. Especially if you find a payday lender who is reputable.
Short term loans can be negotiated extremely quickly which means that you can get the money quickly, sometimes the same day. Traditional lenders will always do a credit check which will take longer and they also do not process applications quickly. They may not lend to anyone with a poor credit record or will lend to them at an extremely high rate. With a short term loan they will lend small amounts of money which are easier to repay. They will have a short repayment schedule so that it will not take long before you are free of debt. There is also a very competitive market these days which means that you have a lot of choice. This brings with it great advantages because prices and terms are likely to be more favourable but it does make choosing the lender difficult. However, you can go to Omacl which is a site that introduces borrowers and lenders. You can give them details of what you want with regards to a loan and they will match you up with the lender which most closely fits your requirements. This can speed things up and make the decision a lot easier.