Getting a loan and carrying debt is something that a large number of UK residents do every year. Some people get loans to get a new car, to attend university or because they need some extra cash. While getting a loan seems simple enough, sometimes, you need money right away, which can complicate things.
Unfortunately, many lending solutions can take weeks before you are approved or paid. If you need money quickly for emergencies, unexpected travel or upcoming bills, you likely don’t have a lot of time to wait. Thankfully, short term loans exist. This article is going to look at some of the many benefits of short term loans.
You Can Get Them Online
When most of the people are looking for a short term loan, they will simply look around to local lenders in their area. While this is a decent strategy, these people are missing out on a hidden gem in the space, online lenders! Online lenders (such as BingoLoans) are a great alternative to local lenders and offer several great benefits.
In addition to being able to loan shop from your home, online loans can often have lower interest rates and better terms. The application and response processes are also quick, which means you can get your money even quicker. Of course, be sure to know the reputation and history of an online lender before you agree to work with them.
You Pay Less Interest
While many standard loans have extremely low interest rates, this can be deceiving. See, even paying 2% interest on a loan of 10-20 will end up being a large amount. One of the biggest benefits of short term borrowing is that you will pay less interest. The more extended your loan repayment period is, the more interest you will end up paying.
With most short term loans having a repayment period of a few weeks, months or years, you will save a lot in interest, and most of your payments will be going directly to the principle. The interest will have far less time to accrue, which will leave more money in your pockets!
They Are Less Stressful
Any way you look at it, having a loan for years (or decades) can be a stressful thing. Knowing that a certain portion of your income will be going to a loan for years can take its toll and be quite stressful. And as you know, stress can affect your life in a number of negative ways, and should be kept to a minimum.
Watching the interest continue to accrue over the years can also put a real damper on any financial goals you are meeting. However, with a short-term loan, you will have it paid off much quicker and be free from the burden of debt that much more rapidly. This will keep you stress-free, while still being able to contribute towards your financial goals or needs.
They Are Predictable
When you get a short term loan, you likely have a good idea of what your financial situation will look like throughout the duration of the loan. This makes it much easier to decide how much to borrow and how much you can afford to pay back. However, if you get a loan over 30 years, you truly have no idea what your situation will look like decades from now.
You might have a completely different job, different financial responsibilities, and a vastly different income. So while you might be able to afford the loan now, there is no telling if you’ll be able to in the future. This is not a problem with short term loans and is one of their biggest benefits.
In conclusion, we hope this blog post has helped to show you some of the many benefits of short term loans.
