10 Reasons People Take Out Short Term Loans
Short term loans are one of the most popular for people as we head into 2024, with people now opting to take them out on a regular basis. Millions in the UK have used them as a steady method for a number of years now. Below are the top reasons Forward Finance thinks people take out short term loans.
TO PAY OFF OTHER LOANS
For some people taking out a short term loan is a solution to pay off an existing debt or a select amount of smaller loans. For example if you have a credit card, owe money to a family member or even have a store card it’s easier to take out a short term loan to pay everything back and only pay out one loan each month.
AVOID OVERDRAFT CHARGES
If you currently hold a UK bank account and have an overdraft you will know the interest rates can be insane and some banks charge you by the day should you slip into an unwanted overdraft. Taking out a short term loan allows you to pay it off and avoid unwanted charges and means you only have one loan to pay back each month.
NO SAVINGS
Not everyone has the luxury of savings or you may have had to dib into them due to unexpected circumstances. You may want to join friends on a trip away so a short term loan could be the perfect solution, and monthly affordable payments.
UNEMPLOYMENT
Nothing in life is permanent so you or your partner may find yourself in financial difficulties if one of you becomes unemployed. A short term loan is a way to help you adjust to your new budget and help you pay bills until you get things back on track.
UNEXPECTED ILLNESS
Whilst most companies offer sick pay it’s only statutory which isn’t a lot and not enough to cover most people’s bills and living expenses. Taking out a short term loan offers a solution to tide you over until you’re back on your feet.
CAR BREAKS DOWN
People rely on their cars to get back and forth to work, if your car breaks unexpectedly and you can’t get to work and back you’re pretty much stuffed if you haven’t got the money to cover the unwanted expense. Taking out a short term loan offers a solution to replace or fix your car as soon as possible and pay it back affordability over a few months.
LARGER BILLS
With the gas and electricity prices through the roof your bills may be coming In a little higher than expected and you may not have accounted for additional expenses, so a short term loan could come in handy if you find yourself in a sticky situation.
YOU HAVE BEEN REFUSED A BANK LOAN
If you have applied for a bank loan and been denied all is not lost it doesn’t automatically mean you will be refused for a short term loan. Short term loans aren’t just for people with excellent credit scores.
YOU NEED MONEY FAST
In most cases short term loans have a super fast process with some companies transferring the money into your account in a matter of hours. So if you’re looking for fast cash because your bank is closed a short term loan could be just the solution you need.
TIME
You may need money but physically don’t have time to get to the bank during opening hours to discuss loan applications, the application for short term loans can be carried out in the comfort of your own home.
