Everyone has financial needs and some people are good at managing their incomes and expenses in the right way. You might know what to do when your expenses are constant every month. What if there is a huge unexpected expense? Well, unexpected expenses require cash immediately.
During such times, even if your family and relatives might not be able to help you, short-term loan lenders will. Short-term loans are those loans that are repaid within 9 months or a year. If the repayment period extends over a year, it becomes a long-term loan. Some lenders are flexible with the repayment period while some are not.
You must always choose a lender who is generous in such things because failure to repay on time can affect your credit rating to a huge extent. LoanPig is one such lender and broker of short-term loans from FCA approved lenders. They are trustworthy and give the best short-term loans in the market with competitive interest rates.
The application process is easy and simple that can be done online. All you need to do is be over 18 years of age and a resident of the UK. To learn more about LoanPig visit their website and apply for a loan online.
Things that you need to learn before you opt for a short-term loan:
These loans are categorised into two categories:
- Average salary loans: These are Emi based loans where the borrower borrows 2.5 times of their monthly salary. The money is to be paid back anytime within 12 months.
- Personal Overdraft Loan: It is an interest-based payment where the borrower pays monthly interest depending on the amount borrowed.
Budget ahead of time and plan your instalments:
If you have taken a short-term loan, for example, a payday loan, then you know that you need to pay a particular amount on the day you receive your next paycheck. You must plan your budget accordingly while including the repayment as the priority.
Make timely or ahead of time payments:
Failure to pay a short-term loan will bring your credit rating to a bottom level apart from having a debt. You should make sure that you don’t pay any penalties for late payment. You have to pay for a loan as soon as possible.
Understand the terms and conditions:
You must always read the terms and conditions of repayment as you might end up the misunderstanding and it will lead to a huge problem. All lenders have different terms and conditions.
Look for multiple lenders:
You should not forget that there is an interest attached to your loan. Always look for the lender who has taken low-interest rates. Choose the best lender by looking at multiple lenders.
Here are a few things you should not be doing:
- Don’t take too much that you can’t pay back
- Don’t take short-term personal loans if you don’t need it
- Don’t make only minimum payments, if you have funds, pay additional payments
- Don’t opt-out if you have poor credit
- Don’t take loans to pay off other loans
- Don’t take cyclic loans
Understand about the advantages and disadvantages of short-term loans and make use of this option to the fullest.