People make mistakes. When these mistake lead to a shortage of cash, this can be very stressful. It could simply be from a bill that unexpectedly falls out of the allocated budget. Maybe illness has affected the breadwinner’s monthly salary. In some situations, it’s a broken down car or even a bust appliance. Regardless of why these types of situations arise – people may find that they need to obtain money quickly in the form of quick loans.
What Are Quick Loans?
Rest assured, assistance is available. Some individuals do in fact have this money, yet it will take time to obtain it.
For example, the money may be tied up in an account and a few days will be required to access the funds.
Others however, find that they don’t have the money they need and therefore need to look for other solutions. At times such as this, quick loans could be a breath of fresh air.
Before choosing a quick loan, individuals need to understand the differences between the various options.
One person may benefit from obtaining a payday loan, such as in the above mentioned situation where a few days are needed to access funds.
Individuals who don’t have the funds they need will find a short-term or installment loan better meets their needs.
The reason for this is short-term and installment loans may come with longer repayment plans, allowing the customer to receive the money without doing damage to their regular budget.
Quick Loans UK
Payday loans are designed for pressing needs. The borrower must however have the ability to pay back the money in a short period of time.
The name payday loan comes from the fact that lenders expect the funds to be paid back with the borrower’s next pay cheque.
Responsible borrowing is key here, as the total interest can easily exceed the amount of money borrowed. This only happens in the event that the loan isn’t paid back within the agreed time period.
However, individuals who have a one-time financial requirement and do have the funds to pay the loan back in a very short period of time may find this option provides the relief they desire with MoneyBoat.
With many payday companies, the funds borrowed must be repaid within 30 days. In the event the borrower defaults on this agreement, the additional interest, penalties and fees charged can lead to new financial difficulties.
Borrowers therefore need to make certain that they do not borrow more than they can easily repay.
Borrowers will discover some lenders now offer a solution if a borrower finds they are in this situation. Few companies allow consumers to roll their loan over for a one month period simply by paying the interest owed on the funds originally borrowed.
Although this may appear to be a good option at first glance, borrowers need to recognise their debt continues to grow during this period.
Furthermore, there is a limit on the number of times the loan can roll over in this manner.
A short-term loan offers an alternative to payday loans, and many borrowers find this solution better meets their needs.
With this type of loan, the borrower repays the funds over multiple payments. Payday loans have earned a bad reputation, as many people borrow more than they can truly pay back with the next paycheque.
If they manage to do so, they find they have new financial problems.
Short-term loans avoid this issue, by allowing the borrower to break the payments down into a more affordable amount.
Consumers however need to ensure they understand the repayment terms when obtaining funds using this method.
Borrowers find this option to be more flexible and provides them with more control. One thing to remember is there is a higher rate of interest with this type of loan.
Installment loans serve as another solution for individuals in need of a quick loan.
This type of loan comes with a longer repayment plan, allowing borrowers to determine exactly how long they need to repay the funds, typically within a six month period.
An individual in need of a higher loan amount may wish to consider this option to ensure they don’t incur new financial difficulties when borrowing to address the current situation.
The Benefits Of Quick Loans
Quick loans allow a person to access cash fast when they find they have financial difficulties.
The amount of cash that may be borrowed is relatively small, as this type of loan is meant to be a short term solution to an immediate problem.
They shouldn’t be the answer to long term financial difficulties, thus they are easier to qualify for than traditional loans.
Most companies now require a credit and affordability check, as they don’t want their borrowers to get over their head.
Creditors, however, do take into account the individual’s current financial situation together with their credit history.
Doing so not only helps to protect the borrower, but the lender as well.
The Drawbacks Of Quick Loans
As quick loans are easier to qualify for, they do come with higher interest rates.
Borrowers need to understand exactly how much they will need to pay if they choose this lending option.
Choosing A Quick Loan Lender
When selecting a quick loan lender, consumers need to be aware of the interest rate and any additional charges.
Lenders vary greatly in this area, thus every borrower needs to shop around to find the best solution for their unique needs.
The process should be fast, friendly and discreet.
Others do not need to know when an individual encounters financial difficulties.
A professional company will ensure this information is kept private at all times.
Discuss the amount you want to borrow with the terms and conditions regarding repayment.
First time customers may be allowed to borrow a small amount, with returning lenders being given the option of borrowing more.
Ask how long the borrower has to repay the loan and when the first payment will be due. In addition, ask if there are any early repayment fees or penalties.
As mentioned above, consumers need to compare lenders to ensure they are getting the best deal. It is your right to understand all of the charges for obtaining the funds.
This needs to include the charging of any fees and penalties, so that you can determine the full impact of the loan.
A payday loan is insecure, and this accounts for the higher interest rate. The lender is taking on more risk when providing the funds, as there is no collateral provided by the borrower.
An individual may find they are able to obtain a better interest rate if they choose to go with a secured loan.
Finally, consider other borrowing options as well. It may be the consumer is able to work out a payment arrangement with the company they owe funds to, such as a utility company, or they may be able to borrow from friends or family.
Quick loans should not be the first option in every situation, as they do cost more than many other borrowing options.
MoneyBoat is a direct lender, which helps to keep costs down. Borrowers don’t pay a broker or middleman in this situation. The Moneyboat servicecs are direct, safe and secure.
The customer service team at MoneyBoat are always polite and friendly. Our borrowers always know that they can count on them in their time of need for all necessary support.
In addition, we charge a flat interest rate of 0.7 percent per day. This interest is calculated on the outstanding balance of the loan. There are then no upfront fees for loan processing or same day payment.
In the event a borrower finds they cannot pay the loan as agreed, MoneyBoat works with them to find a solution that all parties can agree upon to settle the debt in a timely manner.
With the above information, consumers can find it easy to determine if a quick loan meets their needs whilst looking for other ways to save.
This option isn’t advisable for consumers looking to borrow the money for lifestyle “wants”. Better to wait until after payday to buy a new outfit or shop in the sales.
Consider these loan options for specific needs such as dental care which the NHS does not fully cover. If not dealt with, there could be an impact on your health.
Dealing with this and other such emergencies come first in day to day living. Considering a quick loan in this situation could be a sensible choice.
Firstly, determine how pressing the need is for the funds.
What other options may be available to you, not simply those that involve borrowing money? For example, hang clothes out to dry and save money for a new clothes dryer.
Borrow an outfit from a friend for a night out on the town. Set up an emergency fund for the future. Doing so allows the borrower to take responsibility and will ensure the long term benefits for the future.
However, remember quick loans are there when the funds are necessary and the need is pressing.
It is an option every person should consider when they find they are in a real financial bind.