With this month’s relaunch of a major short term lender, the spotlight is yet again focused on this necessary but often criticised industry.
A Useful Resource
The newspapers tend to universally condemn short-term loans. If you are employed but have a poor credit score, the banks won’t help you, so often a short-term loan is the only way to survive a personal financial crisis. For example, if there is a death in the family and you need to take a long journey to visit relatives, where can you turn for emergency cash?
Debt charities warn against getting into debt in the first place, but if you haven’t had a pay rise for years and have a growing family demanding new school uniforms or football kit, how are you supposed to satisfy these reasonable demands. This is where a short-term loan comes into its own. As long as you plan your budget and satisfy the new Financial Conduct Authority rules, you can apply online for emergency financial aid.
Other Borrowing Options
There are others forms of loans. People have been borrowing from pawnbrokers for centuries. So-called logbook loans entail the handing over of your vehicle ownership until such time as the loan is paid off. Both of these options mean that the lender will undervalue your goods or car, so that you may find the loan you are offered isn’t commensurate with your needs. With short term lenders you know exactly what sum you’ll be offered and the precise date when you have to repay the loan.