How to Save and Make Money OnLine
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What You Need to Know About Short Term Loans

For many short term loans are a necessity of life. Day-to-day living has become increasingly expensive.  Pay does not seem to have kept up with the living costs. As a result, many of us have been forced to turn to short term loans which are sometimes also called bad credit loans. At first, a short term loan may sound okay, but you need to look into the terms and conditions of your loan provider carefully before you sign up.

Interest Rates

Interest rates on short-term loans can be horrendous. Some providers will ask you to pay a very high rate of interest. A short term loan of £500 with an APR of 278% could end up costing you £172.60 in interest if you borrowed the money for 90 days. That is a lot of money and you should weigh up your options carefully.

Other Ways of Borrowing Money for A Short Period of Time


There are other ways of borrowing the money for short period of time if you don't have any emergency funds available. If you have a good credit score, you could check out interest-free credit cards. 

Borrowing Money Interest Free on Credit Cards


Some credit cards will offer new customers an interest free period on new purchases or balance transfers. Once again, check out the terms and conditions carefully. The interest free period may range from anything from 3 months to 28 months.

Check out banks like HSBC and Barclays for the best deals. But, don't forget about less traditional banking services such as M & S Money, Virgin Credit and MBNA which are all relatively new players when it comes to credit card services in the UK.  The MBNA All Round Credit Card offers customers O% on purchases over a 28 month period. 

Remember to take your borrowing seriously. Taking out a credit card is the same thing as taking out a personal loan.

Talk to Your Bank About an Overdraft

If you have a good working relationship with your bank, and do not go over an already agreed overdraft limit, ask your bank for an extension to your overdraft. Most banks are sympathetic when it comes to helping their customers out. If your current bank does not want to help you, there are other banks which may be happy to take on board your business. 

Natwest and TSB both have accounts which could be suitable. You may have to pay a monthly fee for these types of account, and once you have arranged an overdraft, you will also have to pay interest. Rates vary and some banks even charge you a fixed amount per day such as £1 for using the service.  

Borrow the Money from a Friend or Family Member

You can always try to borrow the money from a friend or family members. It may be awkward to ask for the money, but they are less likely to want to charge you interest. But, as always, take your loan commitment seriously and make sure that you can afford to pay them back. The last thing you want to do is to end up owing money and not being able to pay them back. 

Door Step Lenders – Are They Legal?


In the UK, you are likely to still come across doorstep lenders. In some areas, doorstep lending is still a very popular way to borrow money. Taking up a short term loan from a local lender may sound great. However, he or she is likely to be in with a larger loan company. If you don't read the small print of the loan properly, you can risk end up paying a lot more than you bargained for when you took out the loan.  Doorstep lending has become increasingly popular in the UK over the last few years. The practice seemed to have stopped for a while, but due to low wages and high living costs, it is now back again. 

All personal loans should be taken seriously. Don't think for one moment that you are going to be able to take a short term or long term loan, and don't meet its commitment. If you don't pay the money back on time, or keep up with regular payments, you will end up with a bad credit score. Many people affected by a bad credit score have no means of borrowing money and often turn to bad credit loans.
Long term loans and short term loans will remain a popular option for a long time to come up. Saving money for a particular purchase or purpose seems to have gone out of fashion. 
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