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Practical tips to help you improve your credit rating and avoid expensive high interest loans

Are Short Term Loans an Answer when you have a Bad Credit Rating?

An image of a man holding a bad credit sign

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.

Is This Really The Answer To Your Problems?An image of a question mark word cloud

It may be tempting for anyone with bad credit problems to think that a short term loan is an answer, 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 can be 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 –

Bridging a GapA mind the gap sign

A short term loan is designed to bridge a gap 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 payday, hence the often alternative name of payday 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 payday 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 spiraling 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:

To find out more about the ‘Cycle of Debt’, please check to the following article – Get out of the Debt Cycle. Get out of Debt and Stay Out

A Number of Pros and ConsAn image of a pros and cons list

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:

  • Having a clear out and selling some unwanted items
  • Cutting back on your expenses
  • Asking friends or family for help – this may mean swallowing your pride but can also help to save a lot of worry in the future

For some additional personal money saving tips, please check out the following article –

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.

Exploring OptionsAn image of a risk and reward sign

Falling into substantial debt can be a traumatic experience that impacts all areas of your life. Which? explains the steps you can take to get back in control from paying less interest on credit cards to the grants and benefits you can claim.

Also, why not explore more affordable lending options from some of the UK’s very best loan lenders, or get loan quotes from the lenders who will accept you.

Jon Edward
Jon Edward
Passionate about helping people find options, when on first glance there do not appear to be any.

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