There may come a time when your income does not cover your monthly expenses, whether you’re working fewer hours, or you’ve been faced with an unprecedented cost. This is where a short-term loans lender can help. These loans can give you access to money quickly when you need it most. Below, we’ll take a closer look at how short-term loans can provide relief when you find yourself struggling to make ends meet.
Emergency expenses
You never know what’s just around the corner, emergencies can strike when you least expect them, which means many of us may not be in a position to deal with them head-on. Maybe your boiler is no longer heating your home with winter fast approaching, or your car won’t start when you need it for the daily commute. These expenses can be costly, especially if you’re on a low-paid job, or you’re faced with a period of unemployment. This is where short-term loans can be particularly helpful. These loans are typically paid back over 6 months to a year, allowing you access to cash when you need it, without having to worry about how this will affect your finances in the future.
Temporary cash flow issues
If you’re temporarily unemployed, or you’re getting less work than normal due to seasonal cutbacks, short-term loans can provide relief when it comes to temporary cash flow issues. You can apply for a short-term loan to deal with costs your income cannot cover and pay it back in more affordable instalments over your preferred period of time. This way, you don’t have to worry about not being able to pay your bills, pushing you further into debt with utility companies. You can deal with temporary issues easily with the help of a short-term loan. This can also help to reduce further financial stress.
Building credit
Did you know that short-term loans can help you build credit to put you in a better position when it comes to borrowing in the future? Taking out a short-term loan that you know you can afford – including interest, and additional fees – paying off an agreed amount each month in full and on time will improve your credit score and show lenders in the future you can manage your finances. Whilst this can be helpful, it’s imperative that you ensure you can meet the repayments as required, as failure to do so could have a negative effect.
Avoiding long-term debt
Long-term loans mean taking on debt over a few years, which means you’re tied into an agreement, paying off the money you’ve borrowed over a longer period of time. Taking on a short-term loan, whilst this may come with higher interest rates, you’ll be able to pay off your loan quickly, to reduce the impact it has on your finances in months to come. You can avoid entering into long-term debt by choosing a short-term loan to suit your needs.
Access to money quickly
Financial tight spots may occur when your income won’t stretch to cover your needs. Short-term loans provided by online lenders allow you to access money quickly, allowing you to fill in an application from the comfort of your own home in just a few clicks. Once your application is complete, you can benefit from an approval decision sometimes in as little as 24 hours. Having access to money quickly means you can reduce long-term money stress, and deal with your money troubles quickly and effectively.