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Short term loans are often taken for granted and some of their important characteristics are sadly overlooked. The right way to use a short term loan is treating it like a pain killer. You can take it once in a while but not often(http://www.lendingstream.co.uk/).
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The unopened
Money box…
What’s inside the box ?
Well…
Something that seems friendly But need not be...
Something that we take for granted… But should not be…
Something that made some people gain But some people lose….
Short term loans…
What.. What.. What.?
What should you do with it?
What should you NOT do with it?
What are its disadvantages?
and..
How can you quickly come out of it?
Only for emergency purposesThe idea was introduced in the 1990’sThey have flat interest rateDuration calculated in weeksHave higher interest rates than regular loans
You know these...
• Short term debts get unimaginably large if extended more than a year
• The Office of Fair Trading (OFT) does not have price control over short term debts#
• 76% of total loan volume [revenue] comes from repeat loans**
• Average household debt in the UK is £56,690 (including mortgages)**
• £181m personal interest paid in UK daily**
#debtadvisersdirect.co.uk **womenindebt.co.uk
You don't know these...
You might know
these...
There are separate short term loans for:StudentsUnemployedPeople on benefitsPeople with no credit scorePeople with bad credit scoreLow interest rate
You might not know these...
Things you should NOT do with Short Term Loans:Do not use them for luxury expenses.
Ex: Home décor, purchase car, lifestyle products
Do not roll over the pending payments
Do not take loans blindly without checking the lender’s credibility.
Do not take loans from lenders with rigid payment terms.
You might want to
know these...
Tips to pay off Short Term loans quickly:Monetize hobbies and skills to earn extra.
Ex: Baking cookies, quilting, teaching computer/math
Use online selling to make money from your unused books, clothing, etc.
Run garage store on weekends with garden fruits and veggies
Make flower bouquets with home garden flowers and sell in the neighbourhood.
You got to do these
Save moneyDon’t overspendDo not indulge in impulse buyingDon’t fall for glamorous advertisementsTry and reduce spending more than you
earn
You might have to
know these...
Stuck with a huge debt and do not know to tackle? Try them for help...
Citizens Advice BureauDebt Relief Order [DRO]Consumer Credit Counseling Service
[CCCS]
to practice savings.. to avoid loans and lead a tension free life…
Its never too late...
