Practical tips to help you improve your credit rating and avoid expensive high interest loans
Lots of people these days are struggling to cope with bad credit and debt problems but short term borrowing such as payday advances are definitely not the best solution. This type of loan can actually make your debt problems much worse than they were to start with.
It may be tempting for anyone with bad credit problems to think that a short term loan is the answer to their problems, after all they are available for people who would find it difficult or even impossible to find an alternative solution, but they are fraught with danger.
The major problem with short term lending is that they are very, very expensive. It may seem affordable in the beginning but this sort of debt solution can soon get out of hand.
For an example of how quickly this can get out of control, please check out the recent article in the Mirror – http://www.mirror.co.uk/news/uk-news/homeless-couple-forced-live-ford-5358350
Short term loans are just that, designed to bridge a gap for the short term and a date will be set at the beginning of the loan when it will need to be paid back in full. This will usually be your next pay day, hence the often alternative name of pay day loans. The real problems can start if you fail to meet the repayment schedule and interest plus other charges can soon escalate out of control.
Think about it – if you are having problems making your salary stretch to the next pay day already (hence your debt problems) how difficult will it be to use a large chunk of salary on the loan and still survive for the remainder of the month?
It is pretty easy to get into the desperation borrowing cycle which can be exceedingly difficult to get out of and you can find yourself spiralling further out of control and into a sea of debt.
For more on breaking this cycle, please take a moment to view the following video:
Short term borrowing options are easy to get – that’s both an advantage and a disadvantage of them. It can be a great relief when you are desperately in need of a cash boost but can also cause real problems if you start to take out loans which you do not really need.
Don’t automatically head down this road without first exploring other options. How about:
For some additional personal money saving tips, please check out the following article – http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/
If you can find an alternative to using a short term loan then take it. It may not be quite so quick, easy and convenient at first but it really is good advice for many debt problems.
If you would like to explore the short term lending options from some of the UK’s very best loan lenders, our friendly and helpful team will be happy to answer any of your questions.