Short-Term Loan Options

Although many people see loans as a long-term financing option, there are
some short-term loan options available as well. These short-term options
range from a year to just a few weeks. If you are in need of money fast in
the short-term, then you should look at the short-term loan options
available to you.
Here is some information about those options and help they can help your
finances.

Why short-term loans?

Although there are other forms of borrowing that might be more appropriate
for the short-term, loans are also an option for short-term borrowing. If
you have had unexpected money problems and need some money fast but don’t
want to be paying the amount back for years, then a short-term loan might be
a good options.

Short-term unsecured loans

One of the short-term loan options available if you want to borrow a fairly
large sum of money is to get a regular unsecured loan over a short period.
You can borrow a few thousand pounds and pay it back over a year. Although a
year isn’t a very short time, it might be cheaper than using a credit card
and be quicker to pay off. If you require a larger sum of money, then this
is one of the best short-term options available to you. Although you have
longer to pay back the loan, the interest will be lower than other
shorter-term loans.

Payday loans

Perhaps the most short-term loan available on the market these days is the
payday loans. Payday loans or cash advance loans are given to people who
need a little extra cash until their next payday. Loan terms are very short,
and range from 1 week to a month or two. These loans can be got hold of very
quickly, and you can usually borrow up to £500 depending on your
circumstances. Of course, this convenience is at a price, and the interest
rates are very high. You usually pay around 10% of the loan amount to get
hold of the loan, and pay this amount again every time you cannot pay. These
loans are great if you need a little cash injection until you get paid, but
if you do not pay the loan back then you could find yourself paying as much
in fees as the loan cost in just a few weeks. However, for very short-term
lending these loans are the best option.

Alternatives

Of course, the major alternative to short-term loans is the credit card.
Credit cards have fairly high interest rates, but they are convenient and if
you already have one then you can use the money straight away. For
short-term borrowing, they are one of the best options around. However,
because there is no real time limit on paying the money back, they can drag
you into debt quickly. If you need small amounts of money over the
short-term, then you should consider loans as an option, because you have to
pay them back in a definite period. Some have lower rates than credit cards,
and can help you to stay free of debt.

About The Author: Peter Kenny is a writer for http://thriftyscot.co.uk,
please visit us at http://www.loanwize.co.uk and
http://www.thriftyscot.co.uk/Loans/