Short term loans can be an extremely useful tool when used properly. They can also be an extremely dangerous tool when used with reckless abandon; many people find themselves up to their necks in loans, living from pay-cheque to pay-cheque barely able to service their loans (never mind pay them off early). Cash loans in the UK can get you into a load of trouble too. Using loans to pay for necessities can again lead to a ton of debt. Now that we’ve got the negatives of taking out loans out of the way, we can focus on one of the ways in which loans may have a positive effect.
Here is a scenario: you have a decent job, can afford to pay your rent, buy food, fuel up your vehicle, go to the movies on Tuesday nights…handle all of your expenses without worry really – and you still have a little left over to put in your savings account. Then your car breaks down. Without that car you can’t get to work, and you find out that you will have to empty out your savings account to pay for the repairs.
Well, I’m here to tell you that there is a way around losing all of those hard earned savings. The answer is short term loans. The process of obtaining a short term loan will differ significantly from person to person and bank to bank; things such as your credit score, income history, and friendliness of your banker all affect what you will have to do to get the loan. Whatever form the loan takes (my preference being a cash secured loan to be paid over one year with the money in your savings account being the funds used as collateral for your loan), you will be left with a financed car repair. You will have a small payment to make every month on the loan which will really help to budget for the repair! This same process is quite helpful to a person who needs guidance when budgeting for all manner of unforeseen expenses.
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