6 reasons you may need short term loans

Find options for getting over those temporary financial hurdles.

09:57 23 April 2013

Short term loans may be more in demand if the economy continues to suffer. Recently the UK credit rating dropped from the previous AAA rating it possessed. Other countries have suffered similar fates, so while it isn’t too alarming, it will still make many people a little nervous about the state of the economy.

 

Some people may already be experiencing difficulties with meeting their expenses from one payday to the next, and millions of UK citizens are out of work. Short term loans are often used to provide an acceptable way to keep funds in the bank and void unauthorized overdraft fees.

 

What are some of the reasons you might consider short term loans?

 

• As stated above a common worry is the charges from an unauthorized overdraft fee.
• No option for an authorized overdraft with your bank.
• Financial struggles due to an unexpected event.
• Receiving a pay check for less than it should have been.
• Unforeseen medical (or other) bill.
• Significant vehicle repairs.

 

Short term loans can be of great help during these types of situations, and many financial institutions offer them at reasonable rates. They are often confused with payday loans, but are not necessarily the same thing. If you do find yourself in a situation that demand finances which you don’t have, consider short term loans.

 

• Check with grocers and other local shops to see if they offer short term loans with good rates.

 

• Consult with financial institutions to find out if they offer short term loans and what the options are.

 

• Friends and family are able to provide short terms loans and you can have your own contract of terms drawn up to make it legally binding.

 

• The Social Fund may be able to help if you are worried about funds, but don’t have the money to repay short term loans.