Short Term Loans – The Facts

You’re in a small financial difficulty and thinking about short term loans urgently to meet the cost of the emergency, e.g. car repairs, house repairs or cost of an osteopath for that sudden back pain.

 

short term loans

 

Most people in a secure job, stable finances and good to excellent credit rating would have the option of using some of their savings, resort to using a credit card or delve into their bank account overdraft facility. However, some people wouldn’t have the luxury of having a credit card or an agreed overdraft facility with their bank. These people can turn to short term loans for a solution.

 

 

So, the way people handle a financial emergency depends on a number of factors. Anyone in the UK, who is over 18, with a job and stable finances, but does not have a perfect credit record, would normally have to bypass the mainstream lenders and credit card companies and look into their short term payday loan options instead.

 

What are Short Term Loans?

 
These are unsecured personal loans that are normally lent for short periods (3 to 30 days), but can also have a longer duration (3 to 12 months). Payday loans cater for the high risk unsecured lending market and therefore charge higher interest rates (APRs) than the big lenders who specialise in lending to financially ‘safe’ individuals. The interest rates (APRs) have recently been coming down due to the competition in the short term payday loan sector. But, they are still higher than the mainstream sector, as the risks associated with lending to individuals with a poor credit record are much higher.

 

The original amount borrowed together with the interest charged for the number of days or months the money has been borrowed need to be repaid in full on the customer’s next pay date.

 

How do I get one?
At Gimmedosh.com we search for the best rates and providers, so all you have to do is submit the online application and wait for a few minutes while we do the work.

If your application is approved and you want to go ahead with the loan, the funds can be in your account in less than 24 hours, usually within one hour!

That’s it, that’s all you have to do to get your hands on some quick cash for the emergency or that special Xmas present for a loved one.

 

How much can I Borrow?
As a responsible company, we at Gimmedosh.com like to think you make that decision for yourself when applying for a short term payday loan, but the usual minimum and maximum amounts are £100 to £1000 over 3 to 30 days. You should consider the penalties for late or non-payments of the original loan, as the outstanding amount can quickly grow to unmanageable levels.

 

What if I can’t Re-pay in Time?

 

 

We hope this isn’t the case, but like all lenders, big and small, there will be a charge or penalty that will be added to the original amount by the lender.

It is best to avoid this situation if at all possible, since the debt can grow considerably if you can’t re-pay the loan and the interest added.

One option that a number of lenders allow is the ‘roll over’ of the loan to a new short term payday loan. But, again, this isn’t ideal, as the total debt can quickly grow to unmanageable levels.

 

Is the Sector Safe?
The payday loan sector is well established in the UK, where they meet the needs of the high risk individuals with a poor credit rating. Recent announcements by the Government that there will be more regulation for the sector included in the Financial Services Bill being introduced in 2014 is going to make the sector even more stable and safe.

 

 

Gimmedosh.com

 

 

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