Money management is a crucial part of all of our lives, so acting responsibly and knowing how to get the most from your money can leave you feeling empowered and independent. But there may come a time when you’re faced with an expense you’ve not accounted for, and worry about how you’re going to pay for it – this is where short-term loans online come in. These loans can help you out in a pinch, and give you back that feeling of empowerment when it comes to your finances. Read on to find out more.
Explaining short-term loans
Short-term loans – as the name suggests – are a finance option in which you can borrow money to deal with an emergency expense that your income will not cover, and pay it off over a shorter term, typically around 6-9 months. These loans tend to cover smaller amounts up to around £1500 depending on your lender. Short-term loans can be used to help you navigate financial hurdles that you may come across if you’re faced with an unexpected expense your income will not cover if you’re waiting to be paid, or if you’re struggling in a period of unemployment. Even if your credit score is low due to late payments in the past, online short-term loan lenders base their decision on affordability rather than credit score.
Factors to consider
If you’re looking to empower yourself with short-term loans and take control of your unexpected charges, there are a few factors that you should consider to ensure you’re getting the most out of your loan and ensure you’re acting responsibly. Here are a few considerations when applying for a short-term loan.
Review your financial situation
Firstly, make sure you consider your financial situation. Short-term loans, whilst they can help you to take control of your finances, should only be used when necessary, so think about where you really need to borrow the money. Secondly, take a look at your income and outgoings each month to determine whether you’re going to be able to meet the repayment requirements for the loan you choose. This will help you to make a responsible decision and allow you to protect your finances and your credit score.
Terms and conditions
Make sure you understand the terms and conditions of the loan clearly. It’s rare that lenders include everything you need to know about your loan repayments in an advertisement, so take the time to become familiar with additional fees, late payment fees, and interest that you will be charged so you can determine the total cost of borrowing.
Choosing a lender
Being a responsible, empowered borrower means carrying out your due diligence when it comes to choosing a lender that suits your needs. Research and compare lenders online to make sure you’re getting the best deal. As well as this, make sure you read reviews from other borrowers to get a clear idea of the level of customer service your lender offers. Always choose a lender that can provide help in the form of live chats and ensure they have contact details should you need any help.
Creating an emergency fund
Whilst short-term loans can empower you when you need it most, it’s essential that you work towards creating an emergency fund to help you manage your finances in the future. To do this, take a look at your budget and decide how much you can afford to put into savings each month. It doesn’t have to be a large amount – it will all mount up over the next few months. Creating an emergency fund means you’ll have your own cash to fall back on should you need it, allowing you to manage your expenses easily.
