Know the facts about short-term borrowing

When you need cash in a hurry, you might find that you are less likely to read as much into the details of the loan. This can be something that will set you up for a major financial crisis, especially if you were not going through the ideal type of lender in the first place. To help yourself make the right decision, you will want to learn more about the available options for short term loans.

Personal cash loans

Many people have found that the personal cash loans for smaller sums of money turn out to be a beneficial option for them. This is because they can get the money that they need to get them through their rough financial patch, while being able to make use of flexible repayment terms. There are a few options out there, but can be a helpful place to start your search. Through such cash lenders, you can expect to be able to borrow up to $1,250 and you can do so without the crazy over-the-top finance charges and fees that make it so difficult to repay – you just pay back the loan plus the interest. Most of the time, all you need is proof of reliable income, a social security number, and an active checking account. You can then start to look at the options you will have for repaying the money that you will be borrowing.

Payday loans

These can be one of the most risky types of short term loans out there. Many people find that they feel that they were taken advantage of in desperate times. The repayment terms are rigid and the payday loan lender is not usually able or willing to cut you any slack in regards to when you need to repay the money you borrowed, plus the incredibly high interest fees that they will have tacked on top of that loan amount. Sure, some of those places will offer quick cash and a good bit of it, but it comes at a cost that you may not be able to afford in the end. Too many people have found that they have been stuck with not only the large amount of money owed to the payday loan company, but to the bank for the insufficient fund fees that have built up since they could not repay the loan in full on time.

Title loans

The title loan companies demand the title of your vehicle, which will remain theirs through the legal process of repossession if you are not able to repay the loan according to the terms that you initially agreed to. There are a lot of people that end up finding themselves without a vehicle because they are simply not able to keep up with the strict repayment requirements. Not only that, but after their vehicles are sold at an auto auction, they sometimes find that they still owe the lender money because they were not able to sell the vehicle for the amount that was owed.

As you can see, there are indeed many options when it comes to finding quick access to the money you need. However, not all of those short term borrowing options are ideal for you. Too many of them can put you in a financial situation that is worse than when you went to obtain the loan in the beginning. This is why you might want to make sure that you are sticking with the tried and true option of personal lending. The payday loan alternatives are among the best options for anyone who finds themselves in need of a little bit of money and who needs to be able to get access to that money in a quick amount of time.

Photograph by Stevepb

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