Welcome to MoneyBoat.co.uk!

Payday loans continue to receive bad press, yet people often overlook the benefits they provide. Although it is true that many people seek payday loan debt help, this type of loan is the same as any form of credit. Individuals need to take care before applying to ensure they can make the payments. Cars continue to be repossessed every day, homes are lost to foreclosure and people default on credit cards, yet they don’t receive the same type of negative press. Although a payday loan does come with a higher interest rate than many of its counterparts, it’s of great help to those who need cash quickly. Here is what every consumer needs to know about short term loans, payday loans and other options available to them.

What Are Payday Loans?

Payday loans serve as a short term solution to an immediate expense. These high interest loans typically come with a low maximum borrowing limit and a high interest rate. Lenders require the money be paid back in a short period of time, often 30 days or less. As the rates with this type of loan are high, some borrowers find they are unable to meet either their loan obligation or other obligations they have. If the loan is not paid as agreed, the money that is still owed becomes due, along with interest and any late fees and charges assessed by the lender. The interest, fees and charges continue to build up until the loan is paid in full, and this is where many borrowers find they get into trouble.

Lenders understand this may be a problem for borrowers, and they now offer a solution. They allow the borrower to roll over the entire balance for a month simply by paying the interest owed on the original amount. The problem with this is the debt continues to grow. Restrictions have been placed on the number of times the loan may be rolled over in this manner and the amount the debt can grow to. The debt cannot be more than twice the amount borrowed after fees are added in.

The problem occurs when people have multiple payday loans. They roll these loans over and never get out of debt. It becomes a cycle that the borrower finds difficult to break.

What Are Short Term Loans?

Short term loans, often referred to as instalment loans, differ from payday loans in that they may be repaid over a period of time, rather than all at once. With this option, consumers find they can budget for payment obligations without overextending themselves to meet a short term need. Consumers find this gives them breathing room when an emergency arises, without pressure to come up with funds immediately to repay the loan. They offer flexibility and control that borrowers prefer. As with payday loans, short term loans tend to have higher interest rates than conventional loans. Borrowers need to take this into consideration when obtaining funds and never obtain more than they need and can repay without bringing about more financial difficulties. Consumers can see how much will need to be paid back and in what instalments once pay date information has been provided when using MoneyBoat, as borrowing needs to be transparent at all times.

Tips For Borrowing Money

Following are some tips consumers need to keep in mind when borrowing money. These tips apply to all types of financing, not simply payday or short term loans.

• Take time to compare lenders. Many individuals fail to take this step simply because they need money quickly. Doing so can cost a consumer a great deal more in the long run, however, so this is one step that should never be neglected.
• Consider the amount to be repaid before borrowing money. At times, it is best to have a loan with a shorter repayment term, yet a lower annual percentage rate is better in other cases. Fortunately, there are numerous calculators available online to help consumers compare loans and repayment terms.
• Understand the difference between a secured loan and one that is unsecured. Secured loans are backed by collateral, and this collateral may be lost in the event the borrower defaults on the loan. For example, a mortgage is a secured loan, and the home may be taken by the lender if payments aren’t made as agreed.
• Don’t borrow money without considering other options. If a utility bill is due, talk to the provider to determine if payment arrangements can be made or speak to charitable organisations to determine if they can help. Taking out a loan isn’t something that should be done without careful consideration, regardless if it is for a small amount or a large one.
• Establish a budget to ensure repayment obligations can be met. Many individuals fail to take this step, only to find they have financial problems again in a short period of time. A budget helps to prevent this and ensures the consumer can make payments as agreed.

When A Loan Is The Right Move

Individuals often question whether it is right to take out a loan at any time, other than for a house or vehicle. The answer to this question is yes. One should never put off needed dental care simply because they don’t have the funds to pay for it. Although the NHS does pay for a portion of these costs, individuals must pay for a portion of their fillings, extractions, crowns, dentures and bridges. A short term loan can help if the person needs this work done, yet doesn’t have the funds to pay for it. Be aware, however, the amount to be borrowed will often be more than the cost of the dental work, as most lenders do have a minimum borrowing amount. If a person needs a vehicle to travel to or from work and the vehicle breaks down, a loan should be obtained to pay for the repairs if the person cannot. The reason for this is the individual needs the funds from the job to pay for not only the car, but other obligations. This is a situation where a short term loan can be of help. In contrast, a person shouldn’t borrow money for an unplanned vacation simply because they can get a good deal. The vacation will end up costing a whole lot more in this situation. The same is true for concert tickets and other luxuries that aren’t essential. Borrowers need to recognize the difference between items they want and items they need and only borrow for essentials. Doing so ensures a person doesn’t get in over their head.

Why MoneyBoat.Co.UK?

Consumers in the United Kingdom turn to MoneyBoat when they find they need cash in a short period of time, as we are known for providing affordable and responsible borrowing options. Our charges and repayments are easy to understand, and we’ve streamlined the borrowing process to make it easy for you to get the funds you need in a timely manner. We offer a variety of options, so you aren’t forced to take a loan that does not mean your needs, and every application that comes to us is subject to affordability and credit checks, as we don’t want our customers to get in over their head.

The loan underwriting staff members are friendly, discreet and professional and remain available between 8:30AM and 5:30pm on weekdays to assist clients with their loan needs. Customer service remains our top priority, and we cap loans at £800 for new clients and £1,500 for those who have used our services before. Our service is personal, transparent and discreet in terms of both lending and collections, and we clearly explain our charges to ensure consumers understand what they are agreeing to before accepting any money.

The minimum term for our loans is two instalments and no borrower can take out a loan for more than six months. The instalment duration for the first payment is five days, and consumers may pay their loan back early without fear of being penalised or made to pay fees. As there is no broker or middleman, consumers always know who to contact with any issues, and we offer a flat interest rate of 0.7 percent per day, less than many lenders providing short term funds today.

Before obtaining a payday loan or any loan, ensure you have the resources to pay it back without going further into debt. Everyone has unexpected expenses arise. It’s how they handle these expenses that dictate what happens in the future. Take the time to ensure that you can pay the loan and meet other expenses without being short once again. Set up a plan to ensure problems such as this don’t happen in the future, such as establishing an emergency fund and a budget to meet expected expenses when they come due. By taking simple steps such as this, you can obtain a loan, pay it back on time and move forward with life. Responsible borrowing is the key, with payday loans being only one of several options, but one that many benefit from. Short term loans or instalment loans may be better for others. Contact us today if you find you are short on funds, as we’ll be happy to help you find the solution that is right for you.