Emergencies, unexpected events, and unanticipated expenses happen to most people at one time or another. The car breaks down, bail money is needed, the furnace quits operating, a tooth becomes abscessed, or a relative needs bus fare to get home. These situations cannot wait until next payday, so cash is required immediately. Banks and traditional lenders are unable to help because of the lengthy application and approval processes under which they operate. An application has to be filled out during banking hours. All references are checked, expenses configured in relation to income, and past credit history is considered. Approval could take a few weeks, or a few months.
This is where budgeting for unforeseen circumstances is an advantage. A savings account that can be accessed for emergencies is a wise way to avoid being strapped for cash when automobile repairs are needed. Unfortunately, that is not always possible for the average working individual. Rents, utilities, the rising cost of groceries, and the price of petrol makes it difficult to meet basic expenses from week to week. Money management is not part of the educational curriculum, and today’s society places a high value on the amount of possessions a person owns. The vast majority of the population lives beyond their means. Family members are often unable to lend money because they do not have any themselves. Borrowing the money is not feasible in most cases.
The other options available for fast cash include a short term loan, and a payday loan. When considering between those two possibilities, there are a few things to keep in mind. First, both incur very high interest rates that are typically applied daily. That adds up quickly. Payday loans have the higher interest rate of the two options. The borrowing limit is low, and payment is required in thirty days or less, depending on the lender. Fees for late payment are also high, and can lead to serious financial difficulty. This type of loan should only be considered as a last resort.
Short term loans will also end up costing a lot of money, but do have a slightly lower interest rate than payday loans. The advantage is that this loan can be paid in installments, rather than all at once. They also have longer term duration so people can take up to six months to pay the balance, depending on the lender. The application is simple, the approval process quick, and most lenders are available to do business six or seven days per week instead of just five. Compare the interest rates and fees of a few lenders, and make sure they are Short term lender authorised. That means the company has a valid license with the Financial Conduct Authority. Those in need of fast cash can go to Moneyboat.co.uk for details on short term loans.